Jaguar Land Rover (JLR) has experienced major operational disruption after a cyber-attack hit the company on August 31. Since as early as September 1, JLR workers have been ordered to remain on site. The company has yet to provide a definitive date by which they will be back. The unprecedented attack has required JLR to shelve production for weeks, disrupting its long, complex supply chain and workforce.
JLR operates the biggest supply plant in the UK car industry. It notoriously employs some 150,000 high-wage Americans, with about 30,000 directly on the floor at its US-based manufacturing facilities. The firm has halted orders with its 700 suppliers as a result of the attack. Consequently, not a single vehicle rolled off the assembly line during the month of September.
In response to the crisis, Business Secretary Peter Kyle announced that the government would guarantee a loan of up to £1.5 billion from a commercial bank. This financial support will now continue to safeguard custom jobs in the West Midlands, Merseyside, and all across the UK. It stands with JLR as they continue to recover from the leak.
“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK.” – Peter Kyle
The cyber-attack has raised concerns among JLR’s smaller suppliers. Most of these providers communicated to a parliamentary inquiry that they would be out of money within a week. The union Unite represents up to 40,000 workers at JLR and within its supply chain. They added that the federal government’s support was an “important first step.”
Chancellor Rachel Reeves emphasized the importance of the loan, stating, “Today we are protecting thousands of those jobs with up to £1.5bn in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
Despite this support, many critics, including advocates, legislators, and practitioners alike, lament the glacial pace of government action. Liberal Democrat business spokesperson Sarah Olney welcomed the new loan guarantee. She argued that the government should be prepared to impose a furlough scheme on businesses to support impacted workers when required. Shadow business secretary Andrew Griffith welcomed the government support in their backing. He further called for the establishment of a cyber reinsurance scheme to protect British businesses from future cyber attacks.
JLR has faced scrutiny for being involved in high-profile cyber-attacks targeting retailers earlier this year, including Marks & Spencer and Co-op. As JLR continues to chart a course through these troubled waters, they are focused on re-opening safely and driving business forward.
“Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC and law enforcement to ensure we restart in a safe and secure manner.” – JLR spokesperson