UK Working Closely with Jaguar Land Rover After Cyber Hit

The British government has confirmed that it is working closely with Jaguar Land Rover (JLR) to understand the impact of a recent cyber attack on the country's largest carmaker. The incident, which occurred in early September, forced JLR to shut down its factories and production operations, resulting in significant disruptions to its retail and manufacturing channels.

JLR, owned by India's Tata Motors, warned earlier this week that its factories would remain closed until September 24, as the company continued its forensic investigation into the breach. The luxury carmaker has also advised many of its 33,000 staff to stay at home during this period. With its three factories in Britain typically producing around 1,000 cars per day, the stoppage is having a significant impact on the country's automotive supply chain.

The Unite trade union has expressed concern over the financial implications of JLR's factory shutdown, warning that job losses could occur if the production halt continues. The government and industry body, the Society of Motor Manufacturers and Traders (SMMT), have issued a joint statement assuring the public that they are working closely with JLR to support its efforts to restore production operations.

Government Response

"The government, including government cyber experts, are in contact with the company to support the task of restoring production operations, and are working closely with JLR to understand any impacts on the supply chain," said the joint statement. This collaboration aims to mitigate the effects of the breach on JLR's global operations, which will take time to recover from.

Cyber Attack Implications

The cyber attack has had far-reaching consequences for JLR, with the company stating that it has been affected by some data breaches. However, it remains unclear whether these breaches involved customers, suppliers, or internal systems. The incident is just the latest in a string of high-profile cyber and ransomware attacks targeting companies worldwide.

Broader Challenges Facing JLR

JLR is facing broader challenges, including weaker demand in China and Europe, as well as delays to the launch of its electric vehicle models. In July, the company reported an 11% drop in quarterly sales, partly due to a temporary pause in US shipments after tariffs were imposed. These challenges have led JLR to cut its profit margin target for fiscal 2026 to 5%-7%, down from 10%, citing ongoing trade uncertainty.

Impact on Automotive Supply Chain

The disruption caused by the cyber attack is having a significant impact on JLR's British supply chain, which supports over 104,000 jobs across the country. The smaller companies that make up this supply chain are also feeling the effects of the production halt, with mounting concern about job losses and financial instability.