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Jaguar Land Rover (JLR) suffered a cyberattack on 1 September, forcing shutdowns of global production lines.
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UK factories in Solihull, Halewood, and Wolverhampton remain idle; restart is delayed due to IT issues.
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Estimated losses for JLR so far range from £50–100 million; supply chain impact is severe, especially on small and medium-sized suppliers.
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Some suppliers have already laid off staff or are preparing for further layoffs due to halted production.
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Government and trade unions are calling for a furlough scheme to protect affected workers and preserve jobs.
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JLR is working with the National Cyber Security Centre to investigate the attack and secure its systems.
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Despite the crisis, JLR’s £2.5bn pre-tax profit suggests the company can withstand a short-to-medium-term disruption.
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Concerns remain over the long-term effect on the automotive supply chain if production delays continue.
Jaguar Land Rover (JLR) is grappling with a severe disruption after a cyberattack forced the carmaker to shut down production lines and computer systems globally. The attack, which surfaced on 1 September, has left factories in Solihull, Halewood, and Wolverhampton idle, with no expected restart until at least Wednesday.
The company has reportedly suffered losses of at least £50 million due to the shutdown. Industry experts warn that the most critical impact is being felt by small and medium-sized suppliers who rely heavily on JLR for business. Calls are growing for a government-backed furlough program to protect jobs within the supply chain.
David Bailey, professor of business economics at Aston University, emphasized the scale of the threat: JLR’s network involves up to 250,000 individuals. Any prolonged disruption could push suppliers into bankruptcy and result in significant job losses.
Under normal operations, JLR produces more than 1,000 vehicles daily across its UK sites, with engine assembly in Wolverhampton and vehicle assembly in Solihull and Halewood. The company also operates factories in China, Slovakia, and India.
The shutdown followed a precautionary closure of IT networks to prevent further damage. Because production and supply chains are heavily automated, cars could not be manufactured. While dealerships experienced disruptions, workarounds have been introduced to maintain sales.
Initially, the company appeared optimistic about a swift resolution. Nearly two weeks later, however, restoring IT systems has proven complex. JLR has confirmed some data may have been accessed or stolen and is working closely with the National Cyber Security Centre.
Daily losses for JLR are estimated at £5m–£10m, potentially totaling £50m–£100m over the past two weeks. Yet with a pre-tax profit of £2.5bn in the last fiscal year, the company is financially positioned to weather the disruption.
Suppliers, particularly smaller firms, are experiencing immediate consequences. Andy Palmer, former Aston Martin CEO, warns that many suppliers may already be reducing staff or planning layoffs due to lost revenue. One supplier confirmed that 40 employees—nearly half their workforce—had been laid off. Others are keeping staff at home with hours to be reclaimed later.
An employee at a major West Midlands supplier indicated production might not resume until 29 September, leaving hundreds of staff idle. Temporary workers, often the first to be cut during production halts, are especially vulnerable.
Labour MP Liam Byrne stressed the need for government intervention, stating the cyberattack threatens to turn a short-term IT disruption into long-term damage for the UK’s advanced manufacturing sector.
The trade union Unite has urged the government to establish a temporary furlough system for automotive suppliers, ensuring worker pay while operations remain suspended. Sharon Graham, Unite’s general secretary, highlighted the urgency of protecting thousands of at-risk jobs and critical skills.
Business and Trade Minister Chris Bryant confirmed ongoing engagement with JLR and cyber experts, acknowledging the significant impact on the company and its supply chain.
