(qlmbusinessnews.com . Thu 18th Sep, 2025) London, UK —
Cybersecurity Crisis at JLR Halts Manufacturing, Calls for Government Furlough Scheme
In a devastating fortnight for Jaguar Land Rover (JLR), the automotive giant has been grappling with a cyber attack that has brought its worldwide operations to a standstill. Since the malicious incident surfaced on 1st September, the company has been compelled to deactivate its computer networks, paralyzing production lines across the globe.
JLR's manufacturing facilities in Solihull, Halewood, and Wolverhampton are anticipated to lay dormant at least until Wednesday as the firm scrambles to evaluate the extent of the damage inflicted. The interruption is estimated to have already cost JLR a hefty £50 million, but the ripple effects are feared to wreak havoc on its vast supplier network, imperilling countless smaller enterprises.
Amid mounting concerns, there are now appeals for the government to implement a furlough scheme to mitigate widespread job losses. Professor David Bailey of Birmingham Business School has voiced concerns to the Reporters over the potential for a catastrophic knock-on effect, highlighting the reliance of up to a quarter of a million people in JLR’s supply chain on the company's continuity.
Under regular circumstances, JLR boasts a production rate exceeding 1,000 vehicles daily, chiefly from its UK bases in Solihull and Halewood, along with engine assembly in Wolverhampton. The company also operates sizable manufacturing hubs in China and Slovakia, alongside a smaller unit in India.
JLR has stated that the shutdown of its IT operations was a defensive strategy to protect against further cyber harm. Nevertheless, given the highly automated nature of its production and logistics, the cessation means vehicles have ceased to roll off the assembly lines.
Sales operations have also been severely hampered, although dealerships are now finding workarounds to maintain some level of functionality. Initially, JLR was optimistic about a swift resolution to the crisis. However, nearly two weeks later, the complexity of restoring computer systems has proven far more challenging than anticipated. The firm has acknowledged the possibility of data compromise and is liaising with the National Cyber Security Centre to navigate the incident.
Financial analysts estimate the daily cost to JLR could be between £5m and £10m, summing up to a potential loss of £50m to £100m. Nonetheless, with a pre-tax profit of £2.5bn in the year ending March, JLR possesses the financial resilience to endure a short-term crisis.
The supply chain, particularly smaller firms reliant on JLR, faces a grim outlook with Andy Palmer, a former senior executive at Nissan and Aston Martin, predicting inevitable bankruptcies and layoffs as companies strive to reduce costs.
Amid this turmoil, Labour MP Liam Byrne has underscored the need for governmental intervention to stave off long-term damage to a critical sector of the UK's advanced manufacturing industry. Unite, the trade union, has echoed the call for a furlough scheme to safeguard jobs in JLR's supply network. Unite general secretary, Sharon Graham, has highlighted the urgent need for ministerial action to preserve jobs and skills during the recovery process.
Business and Trade Minister Chris Bryant has acknowledged the significant repercussions of the incident on JLR and its suppliers, asserting ongoing dialogue with the company and cybersecurity professionals to rectify the situation. As the crisis unfolds, the automotive industry holds its breath, hoping for a speedy resolution to safeguard its workforce and operational integrity.
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