Jaguar Land Rover's Month-Long Production Halt After Cyber Attack Could Cost Billions
Jaguar Land Rover (JLR) has been grappling with the aftermath of a severe cyber attack that occurred on 31 August, leading to a month-long production halt and significant financial losses on the stock market. The disruption has rippled through the supply chain, with smaller suppliers facing layoffs and potential bankruptcy.
The cyber incident forced JLR to shut down its IT networks, bringing production at its UK facilities in Solihull, Wolverhampton, and Halewood to a standstill. The production halt was extended multiple times as forensic investigations continued. The Wolverhampton engine facility was the first to resume operations on 6 October, with other plants gradually following suit.
The UK government stepped in to provide support, offering a £1.5 billion loan guarantee to help JLR navigate the crisis. This marks the first time a major company has received such assistance specifically due to a cyber attack, as reported by both Google Finance and Yahoo Finance. The loan facility aims to protect jobs and maintain cash flow by addressing a backlog of payments to suppliers. While the specific bank issuing the loan remains undisclosed, the guarantee comes from the British government.
The cyber attack has had a profound impact on JLR's sales performance and financial outlook. Estimates suggest that consolidated EBITDA for fiscal year 2025-26 could be reduced to around $850 million. JLR is believed to be losing at least £50 million per week due to the production stoppage, with total revenue losses potentially exceeding £3.5 billion and gross profit losses reaching approximately £1.3 billion.
The recovery timeline remains uncertain, with some industry sources warning that the disruption could extend into November. JLR continues to work towards restoring full production and mitigating the financial impact of the cyber attack, with the support of the UK government and its supply chain partners.
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