At the beginning of September, we received news that Jaguar Land Rover had fallen victim to a massive cyberattack. That situation remains ongoing. An initial pause in operations escalated into a full-blown crisis that has persisted for several weeks. JLR had to shut down production at all its global plants, as well as its financial system for processing vehicle sales and its invoicing system for supplier payments.
The shutdown has cost Jaguar Land Rover a tremendous amount of money and put dependent suppliers at risk. The situation has become so grave that the UK government backed a multi-billion-dollar commercial bank loan to JLR, hoping to stave off job losses.
The British Government Backed A $2 Billion Loan To Jaguar Land Rover Over Cyberattack
Land Rover
We don't have a full accounting of losses for JLR following the cyberattack. But according to Autocar, the financial hit has been huge. Jaguar Land Rover itself may be losing up to $67 million per week as a result of the incident. The toll is having a knock-on effect on around 700 British suppliers, which employ approximately 150,000 workers combined.
The situation at JLR has been desperate enough to inspire a bailout of sorts. The U.K. government is backing a $2 billion loan from a commercial bank to JLR, which JLR will repay over a five-year period. The government is also facing pressure to provide direct aid to the affected workforces.
Jaguar Land Rover Is Making Progress Toward Getting Everything Back Online
Land Rover
Jaguar Land Rover is gradually restoring its systems online. The company published a status update on September 25. The brand confirmed that it had increased its IT processing capacity for invoicing, allowing more expedited supplier payments. Its global parts logistics center is running, allowing the company to process car repairs. JLR's financial system is also back online, allowing the company to process vehicle sales.
The unanswered question is when Jaguar Land Rover will be able to resume full production. The company announced on September 23 that it had suspended production through at least October 1. JLR confirmed in a statement to CarBuzz that some manufacturing operations "will resume in the coming days."
“As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles. Today, we are informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days.
"We continue to work around the clock alongside cybersecurity specialists, the UK Government’s NCSC and law enforcement to ensure our restart is done in a safe and secure manner. We would like to thank everyone connected with JLR for their continued patience, understanding and support. We know there is much more to do, but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress."
The BBC is reporting that JLR's Wolverhampton engine facility will reopen on October 6, with other facilities following suit in a phased plan afterward.
