Jaguar Land Rover Extends UK Factory Closure Amid Cyber Attack: How Tata-Owned Carmaker is Tackling the Impact
Britain's largest carmaker, Jaguar Land Rover (JLR), has extended its production pause until September 24, 2025, following a severe cybersecurity breach that disrupted its retail and manufacturing operations. The company, owned by India's Tata Motors, initially shut down its systems in early September to contain the hack, but the prolonged stoppage has raised concerns about the financial impact on its British supply chain.
The closure at JLR's three factories in Britain, which typically produce about 1,000 cars per day, will now last more than three weeks, leaving many of its 33,000 staff staying at home. The production halt is part of a broader challenge faced by the luxury carmaker, including weaker demand in China and Europe, and subsequent delays to the launch of its electric vehicle models.
The Cybersecurity Breach: What We Know
JLR announced on Tuesday that it had taken measures to contain the breach, which affected some data, although it was not specified whether this involved customers, suppliers or internal systems. The incident is the latest in a string of cyber and ransomware attacks targeting companies around the world.
In Britain, several companies, including Marks & Spencer and Co-op have fallen victim to such data breaches. According to a report by The Guardian, more than one in four UK businesses have been the victim of a cyber-attack in the last year and many more are at risk of becoming victims of such disruptions unless they take urgent action.
The Financial Impact: Job Losses and Supply Chain Concerns
The prolonged stoppage has raised concerns about the financial impact on JLR's British supply chain, which includes many smaller companies and supports 104,000 jobs across the country. The Unite trade union has warned of job losses and has called for government support to mitigate the effects of the lengthy stoppage.
British newspaper The Telegraph reported on Monday that the production shutdown could last until November, although JLR denied the claim. However, the company has indicated that it is taking this decision as its forensic investigation progresses and as it considers the different stages of the controlled restart of its global operations, which will take time.
The Broader Challenges: Electric Vehicle Delays and Weaker Demand
JLR's struggles are part of a broader challenge faced by the luxury car industry, including weaker demand in China and Europe. The company reported an 11% drop in quarterly sales in July this year and has previously cut its profit margin target for fiscal 2026 to 5%-7%, down from 10%, citing trade uncertainties due to US tariffs.
The delays to the launch of its electric vehicle models have also contributed to JLR's woes. The company has been investing heavily in electric vehicles, but these efforts have been hampered by production issues and supply chain disruptions.