UK manufacturing halt extended to three weeks due to cyber attack at JLR factory
Jaguar Land Rover (JLR) Extends Production Pause Due to Cyber Attack
Jaguar Land Rover (JLR), Britain's largest carmaker, has extended its production pause due to a cyber attack to September 24. The disruption, which began in early September, has severely affected the company's retail and manufacturing operations.
The cyber attack is part of a series of similar incidents targeting companies globally, highlighting the increasing sophistication of these attacks. Notable victims include household names in Britain like Marks & Spencer and the Co-op. JLR's cyber experts are being supported by the government and the organization CrowdStrike to resolve the attack as quickly as possible.
The extent and nature of the affected data remain unclear, with some data being compromised. It is uncertain whether customers, suppliers, or internal systems have been affected. The production shutdown may potentially last until November, according to The Telegraph, although JLR has stated this is not their current position.
The lengthy production pause may have significant financial implications for JLR. Beyond the production pause, the disruption could have additional financial implications for the company. The disruption comes at a time when JLR is facing broader challenges, including weaker demand in China and Europe, and delays in the launch of its electric vehicle models.
The production pause has forced JLR to tell many of its 33,000 staff to stay at home. The cyber attack is causing concern about the financial impact on JLR's British supply chain, which supports 104,000 jobs across the country. The Unite trade union has warned of potential job losses due to the cyber attack and has called for government support.
Chris McDonald, a minister in the Department of Business and Trade, has met with JLR to discuss plans to resolve the cyber attack and restart production. Despite exports resuming in May, JLR has reduced its profit margin target for fiscal 2026 to 5%-7%, down from 10%, citing ongoing trade uncertainty.
In July, JLR reported an 11% drop in quarterly sales, partly due to a temporary pause in U.S. shipments after tariffs were imposed. The cyber attack adds to the ongoing challenges the company is facing. JLR's three factories in Britain, which produce about 1,000 cars per day, will remain closed until September 24.
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