Jaguar Land Rover (JLR) announced that it is prepared to resume some of its production as soon as this week. A massive cyber-attack that had halted production across the company’s factories forced the carmaker to send thousands of workers home. The ongoing cyber incident has incredibly thrown JLR’s operations around the globe into chaos. The firm is thought to be losing £50 million a week at the moment as a result of cut back production.
The attack has shaken JLR’s supply chain, which employs tens of thousands in other companies, over 200,000 jobs altogether, according to JLR. About 30,000 people are directly employed in JLR’s factories in the UK, mostly in iconic factories in Solihull, Halewood and Wolverhampton. The business would restart gradually in a 6-phase program. It will begin with the engine plant in Wolverhampton, which will be the first facility to return to operation.
Though the restart is an encouraging step, JLR has warned that the process will take time. As one spokesperson told us, the supply chain is broken right now. They acknowledged that it is in disrepair and promised us that returning operations to normal will be a long process. It could be weeks before all JLR locations are back to pre-troubles routine production levels.
The cyber-attack has since been revealed to have had a widespread impact far beyond the UK. JLR’s own factories in Slovakia, China, and India have been impacted by the shutdown. The criminal collective responsible for the hack, ‘Scattered Lapsus$ Hunters’, has raised awareness of the automotive industry’s cybersecurity vulnerabilities. Thanks to their efforts, we are all much more aware of these vulnerabilities.
The impact of this predatory attack on his employees has made many workers and their families fearful for their future. David Roberts, chairman of Evtec, said the unfolding crisis was doing “irreparable damage” to workers.
“It has had a really detrimental effect, it’s devastating. There’s a lot of vulnerable people out there who are now really concerned – the cost of living, Christmas coming up, when will they return to work in earnest?” – David Roberts
Given the substantial losses incurred during this period of inactivity, industry leaders are calling for stronger support from the government. Mr. Roberts lamented that all the time and no action has taken place despite calls for help all the way up to ministerial levels.
“We asked the government directly, at ministerial level, to directly support the sector. They listened, but they did nothing. It’s almost like they’ve turned a deaf ear to the needs of advanced manufacturing, which is a key platform of the Industrial Strategy.” – Mr. Roberts
Our companies support the transition, and are pushing companies to take action now. With no sales for six weeks, they are underwater and having to pay their operating expenses to stay alive.
“Production will begin, but it’s too late. All of our companies have had six weeks of zero sales and still had to pay their costs.” – Mr. Roberts
As JLR begins its phased restart, it is concentrating on getting its supply chain back up and running. Meanwhile, the long-term effects of the cyber-attack are still not clear. The company has promised investors that it is taking steps to shore up its cybersecurity defenses going forward.
The gradual return of production at JLR represents a crucial step towards recovery for both the company and its employees. JLR now has a huge task ahead coming out of the attack. Yet how well they’re able to work through these challenges and restore faith among the workforce and supply chains will be key.