Jobs, Suppliers At Risk As Tata Motors-Owned Jaguar Land Rover Extends Shutdown Following Cyberattack
Many JLR employees have been instructed to remain at home.
Tata Motors-owned Jaguar Land Rover, the largest car manufacturer in the UK, is extending the shutdown of its manufacturing facilities until Oct. 1 due to a cyberattack that occurred a few weeks back. The shutdown has disrupted its manufacturing operations and put small suppliers at risk of going under, not to mention leaving workers fearing for their jobs.
The luxury automobile manufacturer operates three plants in the UK that collectively manufacture approximately 1,000 vehicles daily. JLR has announced that its manufacturing plants, including those in Solihull, Halewood, and Wolverhampton, will not restart operations until at least Oct. 1.
JLR has not been able to manufacture vehicles since the cyberattack in late August, which compelled it to disable its IT systems. As reported by the BBC, the company is incurring losses of 50 million pounds ($68 million) each week, and many of its employees have been instructed to remain at home. Concerns are also increasing that some of its suppliers may collapse if the disruption continues.
Prof. David Bailey of the University of Birmingham told BBC Radio WM that “If bits of the supply chain go under, that’s going to make a restart at JLR much more difficult,” adding that smaller JLR suppliers could “literally run out of money” if the shutdown extends.
According to earlier reports, the shutdown might even extend into November.
JLR’s manufacturing facilities in the UK directly employ approximately 30,000 individuals, while an additional 100,000 are engaged in the company’s supply chain and 60,000 depend on the expenditures of these employees, according to BBC.
The cyberattack underscored the susceptibility of international businesses to a growing number of advanced cyber and ransomware assaults, impacting various industries. In the UK, more than 40% of companies indicated they had faced some type of breach within the past year, based on official statistics released in June. Well-known brands such as Marks & Spencer and Co-op have been targeted in recent months.
More recently, passengers were left stuck at several major European airports after a ransomware assault targeted a company that manages airport check-ins.
