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Carmaker Jaguar Land Rover will extend factory closures as it struggles to recover from a cyber attack – sparking fears of supply chain chaos ahead. JLR, the UK’s largest carmaker, has extended its pause in production until October 1, having a knock-on impact to the companies that supply it.
Unions have demanded a furlough scheme for workers who are suffering because of the shutdown. The cyber attack hit JLR on August 31 and production has now been put on hold until at least October 1 – with forecasts of revenue losses worth more than £2billion.
Recent IT disruption aimed at Jaguar Land Rover has crippled production lines – and there are fears the firm could be vulnerable to ransom demands ahead. The incident left motor dealers unable to register cars with the new 75 licence plate. JLR is the latest major UK brand to be targeted by hackers after not only M&S and the Co-op but also Harrods fell victim to hacking chaos earlier this year.
Jaguar Land Rover admitted this month its retail and production activities had been ‘severely disrupted’ – while insisting it was working to restart its operations in a controlled manner. The company, owned by India’s Tata Motors, said it had not found any evidence at this stage that any customer data had been stolen after it shut down its systems to mitigate impact. But the cyber groups known as Scattered Spider and Shiny Hunters told of being able to exploit an apparent glitch in the company’s IT systems. They also boasted of gaining access to customer data.
The two organisations, believed to largely comprise teenagers and young men in English-speaking nations, now describe themselves as ‘one and the same’ – while rebranding themselves as ‘Scattered Lapsus Hunters’. Fears of further disruption come amid JLR’s sharing of suppliers with rivals including Aston Martin, Bentley and McLaren. One contractor was quoted by the Telegraph as warning: ‘The bite gets deeper and more intense for every supplier, regardless of their balance sheet. How are we supposed to maintain support of the other car manufacturers when we’ve lost our main customer’s cash flow? The UK automotive system is a wonderfully integrated system – but it’s so integrated that when something like this happens, eventually everybody feels the pain.’
Prof David Bailey, from Birmingham Business School at the University of Birmingham, told the BBC there could be potential costs totalling £2.2billion. He described JLR as ‘strategically one of the most important companies in the UK’, adding: ‘The effects of its spending and its employment here in the region really are massive.’ The Government has now announced that Business Secretary Peter Kyle would visit JLR to meet firms in the supply chain.
Industry minister Chris McDonald said: ‘We have two priorities, helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain. The Business Secretary and I are visiting JLR today to host companies in the supply chain, to listen to workers and hear how we can support them and help get production back online. We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the Government is on their side.’
A JLR spokesman said: ‘Today we have informed colleagues, suppliers and partners that we have extended the current pause in production until Wednesday 1 October 2025, following the cyber incident. We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation.’
‘Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC (National Cyber Security Centre) and law enforcement to ensure we restart in a safe and secure manner. ‘Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open. ‘We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.’
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Read More: Cyber attack forces Jaguar Land Rover to extend factory shutdowns