Jaguar Land Rover cyber attack: Production shutdown enters sixth week

The production shutdown at cyber attack-hit Jaguar Land Rover (JLR) has entered its sixth week, a week after it had raised hopes of a phased restart “in the coming days”.

The company reiterated a statement released last Monday when approached by Sky News for an update on its recovery efforts.

It also declined to comment on a report by The Times that it was considering a loan scheme, worth up to £500m, to help protect its supply chain from the financial turmoil caused by the hacking.

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JLR’s manufacturing operations have been at a standstill since the attack in late August but Sky News understands that testing to make progress on a controlled resumption is continuing.

The Wolverhampton engine plant could be the first to stutter back to life.

A £1.5bn loan guarantee offered by the government to the company is understood to have not been taken up, given that the carmaker has met its commitments to suppliers that it deals with.

Those further down the chain however, complain they are suffering financially and from uncertainty over when deliveries can resume.

The supply chain employs up to 200,000 people directly and indirectly.

Industry bodies say job losses are growing and the risk of smaller businesses folding has increased as cash inflows remain on hold and total outflows grow.

The main concern for such companies is that those which supply JLR indirectly can access some relief – either from JLR or in the form of an improved government scheme that can be tapped by employers directly.

It could be that without financial aid, JLR’s future production recovery risks damage from suppliers going out of business.

The government had hoped that JLR would take out a loan with commercial banks under the proposals for state support, saying that the loan guarantee offer also amounted to support for the supply chain.

Since that offer was made, the company is widely reported to have agreed a separate £2bn funding facility to maintain its funding buffers.

The loss of production alone is costing JLR £5m a day.

The company said in its statement, which mirrored last Monday’s update: “As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles.

“We have informed colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days.

“We continue to work around the clock alongside cybersecurity specialists, the UK government’s NCSC [National Cyber Security Centre] and law enforcement to ensure our restart is done in a safe and secure manner.

“We would like to thank everyone connected with JLR for their continued patience, understanding and support. We know there is much more to do but the foundational work of our recovery is firmly under way, and we will continue to provide updates as we progress.”