JLR Cyberattack Takes Toll On Tata Motors With Potential 2-Billion-Pound Loss, Supplier Strain

Jaguar Land Rover will keep its factories shut until at least Oct. 1 after a cyberattack last month paralysed its systems and forced production to stop. The disruption began to surface on Aug. 31 at the Halewood plant in Merseyside, when managers warned that the company may have been hacked.

The following day, on Sept. 1, JLR shut down its IT networks as the scale of the attack became clear. Four weeks on, the manufacturing plants are still at a standstill. Only the company’s joint venture in China appears to be operating normally.

The company, owned by Tata Motors, has not given details of the breach. However, according to Sky News, it is thought to be a ransomware strike similar to earlier incidents at Marks and Spencer and the Co-op. The impact has gone beyond vehicle production, disrupting dealerships, spare parts orders and even registrations.

Fortune, citing British media, reported that a hacker group called “Scattered LAPSUS$ Hunters” has claimed responsibility. The collective, made up largely of teenagers, has been linked to previous attacks on UK retailers, including Harrods, Marks and Spencer, and the Co-op.

Production has now been halted since Sept. 1, with salaried employees told to stay home. On Sept. 16, the shutdown was extended to Sept. 24 while investigators worked on the breach. The company has since confirmed that the Solihull, Halewood and Wolverhampton sites will stay shut until at least Oct. 1.

The BBC reported that JLR is losing about 50 million pounds each week. Its UK plants usually produce around 1,000 vehicles per day, and the stoppage has frozen supply chains and placed 33,000 workers on the sidelines.

Suppliers are also under strain. The Guardian said the Department for Business and Trade is holding daily talks with JLR, while the National Cyber Security Centre has been offering support. Unions have asked for a furlough-style scheme to shield jobs in the supply chain.

Industry body Society of Motor Manufacturers and Traders told Sky News that government intervention should be a last resort, though it cannot be ruled out. JLR, which made 2.2 billion poinds in profit last year, faces pressure to extend its own support to suppliers.

The shutdown has weighed on Tata Motors’ share price. On Sept. 25, the stock opened nearly 2% lower at Rs 669.90 on the NSE, dropped more than 4% to Rs 655.30 during the day, and was trading at Rs 663.80 by 12:20 p.m., down 2.8% from the previous close.