Jaguar Land Rover Halts UK Production After Cyber-Attack

Jaguar Land Rover (JLR) has suspended production at its UK factories after a cyber-attack in late August forced the company to shut down its IT networks. Factories in Solihull, Wolverhampton, and Halewood are expected to remain closed until at least 1 October, with some reports suggesting the disruption could last into November.

The attack has raised concerns for smaller suppliers that rely solely on JLR, with fears some could go out of business without support. Ministers are reportedly exploring options such as government-backed purchases of car parts or loans to keep the supply chain operational, though suppliers have expressed skepticism about these measures.

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Chancellor Rachel Reeves, during a ministerial visit on Thursday, said the government is focused on getting JLR running again and will do "everything we can to stand by the company and the wider supply chain." Business Secretary Peter Kyle also visited JLR supplier Webasto this week to assess the situation.

JLR, owned by India's Tata Motors, normally produces around 1,000 cars per day across its three UK plants, directly employing about 30,000 people. Approximately 100,000 additional workers are employed across JLR's supplier network. Some suppliers sell exclusively to JLR, while others serve multiple carmakers. Local businesses, such as nearby cafes and transport companies, are also affected indirectly.

The attack is believed to be costing JLR at least £50 million per week in lost production. Reports indicate JLR had not finalized cyber-attack insurance coverage prior to the incident. The National Cyber Security Centre and the National Crime Agency are assisting in the recovery effort.

A group calling itself Scattered Lapsus$ Hunters has claimed responsibility for the cyber-attack, which has also targeted UK institutions including Marks & Spencer and the Co-op. Co-op reported earlier this year that its cyber-attack resulted in at least £206 million in lost revenues.

Unions have called for a Covid-style furlough scheme for affected workers, but ministers have ruled this out due to potential costs. The Business and Trade Select Committee is scheduled to meet on Thursday to hear testimonies from businesses in JLR’s supply chain.

JLR’s statement emphasized: "Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open." The company’s international facilities in Slovakia, China, and India have also been affected by the shutdown.