(qlmbusinessnews.com . Sun 21st Sep, 2025) London, UK —
JLR Shuts Down Factory Operations Amid Severe Cyber-Attack: What's Next?
Jaguar Land Rover (JLR) has been grappling with a severe crisis over the past fortnight, without any clear resolution on the horizon.
The trouble began on 1 September when a cyber-attack compelled the automotive giant to shut down its digital infrastructure and halt production across its global factories.
Production facilities in Solihull, Halewood, and Wolverhampton are anticipated to stay non-operational until at least the coming Wednesday, with the firm evaluating the extent of the damage.
It's estimated that JLR has incurred losses of around £50 million due to this disruption. However, the broader ramifications for its vast network of suppliers, which predominantly includes small to medium enterprises, are causing considerable concern.
The government now faces urgent calls to introduce a furlough scheme to mitigate potential job losses across the sector.
David Bailey, a Professor of Business Economics at the Birmingham Business School, highlighted to the Reporters the immense scale of the issue, saying, “There could be up to a quarter of a million people in the supply chain for Jaguar Land Rover. Hence, this closure could result in businesses failing and significant job cuts.”
Under usual operations, JLR’s production exceeds 1,000 vehicles a day, with significant activity in its UK plants in Solihull and Halewood, alongside engine assembly in Wolverhampton. The company also maintains sizable manufacturing sites in China and Slovakia, and a smaller operation in India.
JLR has taken measures to shutdown its IT networks in a bid to safeguard them from further attacks. However, this has led to a complete stop in vehicle production due to the highly automated nature of their systems.
Although sales have been heavily affected, dealerships have since established alternative measures to continue operations.
Originally, JLR was hopeful of a swift resolution. However, it has now become evident that bringing their IT systems back online is a complex challenge. The company has admitted to potential data breaches and is working alongside the National Cyber Security Centre to fully investigate the incident.
Financially, it's speculated that JLR is losing between £5 million and £10 million daily, translating to total losses of anywhere between £50 million and £100 million. Nevertheless, the firm's pre-tax profits of £2.5 billion for the year ending March hint at a capacity to weather this storm for an extended period.
Andy Palmer, a former Nissan executive and past head of Aston Martin, voiced concerns about the immediate threat to smaller suppliers reliant on JLR, stating, “Some of them will indeed go bust.” He anticipates severe cost-cutting measures, including significant layoffs within these smaller enterprises.
A senior figure at a smaller supplier to JLR, who chose to remain unnamed, has already reported the layoff of 40 personnel, nearly half of its workforce.
Other businesses in the JLR supply chain have advised employees to stay at home, with unused hours being recorded for future compensation against holidays or overtime.
The return to full production seems distant, with one major supplier not expecting operations to resume before 29 September, leaving hundreds of employees in limbo.
Temporary staff, typically first to face cutbacks, are particularly vulnerable, although the broader workforce is at risk if the financial pressure intensifies.
Liam Byrne, the Labour MP chairing the Commons Business and Trade Committee, stressed the critical need for governmental intervention to prevent a ripple effect through the supply chain that could transform a temporary setback into a lasting impact.
Sharon Graham, Unite's general secretary, echoed the call for a bespoke furlough scheme tailored for the automotive sector to safeguard jobs and essential skills until normal operation resumes at JLR and its supplier network.
Business and Trade Minister, Chris Bryant, acknowledged the gravity of the situation, noting ongoing discussions with JLR's CEO and continuous liaisons aimed at resolving the crisis.
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