Jaguar Land Rover’s factories are still standing still almost two weeks after a cyber attack forced the carmaker to shut down its computer systems, sparking fears that parts of its supply chain may not survive the disruption.
The hack, which first emerged on 1 September, has hit JLR hard. Plants in Solihull, Halewood and Wolverhampton remain closed, and the company has admitted some data may have been accessed. The shutdown is thought to be costing between £5m and £10m a day, with total losses already over £50m.
Suppliers Feeling the Strain
JLR itself made a £2.5bn pre-tax profit last year and has the reserves to ride out weeks of disruption. The same cannot be said for its suppliers, many of whom are small firms that rely almost entirely on JLR for business.
David Bailey, professor of business economics at Birmingham Business School, said the fallout could be severe.
“There are up to a quarter of a million people in the supply chain for Jaguar Land Rover. If this drags on, we will see companies go under and jobs lost.”
One smaller supplier has already laid off nearly half its workforce. Others are keeping staff at home, asking them to “bank” lost hours against future overtime or holidays.
Former Aston Martin boss Andy Palmer warned more cuts are likely.
“You hold on during the first week, but by the second week you cut hard. Layoffs are either happening already, or they’re being planned.”
Calls for Government Support
The knock-on effects have prompted urgent calls for help from Westminster. Labour MP Liam Byrne said what started as a cyber issue inside JLR was now threatening the wider industry.
“This is turning into a cashflow crisis that could cause long-term harm. We cannot afford to see a cornerstone of British manufacturing weakened by events outside its control.”
The Unite union has called for a temporary furlough scheme for affected suppliers. General secretary Sharon Graham said thousands of jobs were now at risk.
“Ministers need to act fast to make sure vital skills are not lost while JLR and its supply chain recover.”
Business and Trade Minister Chris Bryant confirmed he had met JLR’s chief executive and said the government was in daily contact with the company and cyber experts.
Uncertain Weeks Ahead
Normally, JLR builds more than 1,000 vehicles a day, many of them in the UK. But with production lines shut and no clear restart date, confidence in the industry is being tested.
For JLR, the financial hit is painful but manageable. For smaller suppliers, every day without production makes survival less certain. As one West Midlands supplier put it: “We can hang on for a bit, but if this goes on until the end of the month, we’ll be in real trouble.”
