Jaguar Land Rover has announced a further extension of its car production shutdown as the UK’s largest car manufacturer deals with the repercussions of a cyberattack.
On Tuesday, JLR confirmed it would halt production at least until Wednesday, September 24th, as it continues to investigate the initial breach detected earlier this month.
The company mentioned: “As the forensic investigation into the cyber incident progresses, this decision has been taken. The investigation is proving to be time-intensive, considering the various stages involved in a controlled restart of global operations.”
“We deeply regret the ongoing disruption this incident is causing. We will provide updates as the investigation unfolds.”
Owned by India’s TATA Group, JLR has halted production after learning that hackers had breached their system several weeks ago.
The company revealed that the attack has impacted “some data,” but is unable to disclose specifics about which data was compromised or whether customer or supplier information has been stolen, though they will reach out to impacted individuals.
With production paused at factories in Midland and Merseyside, JLR faces significant financial implications due to the cyberattack. Other production sites globally are also feeling the effects, raising concerns that restoring operations may take weeks.
The shutdown is affecting JLR’s suppliers and retailers, who are operating without access to the databases usually utilized for sourcing spare parts for garages and registered vehicles.
Recently, the Unite Union warned that thousands of workers within the JLR supply chain may face job losses and urged the government to implement a furlough plan to support them.
The impact of the cyberattacks may persist into October, with thousands of JLR production employees instructed to stay home, suggesting that many suppliers might also need to keep their staff off-site.
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Due to the shutdown, JLR estimates it has lost the production of 1,000 cars daily, resulting in an estimated loss of £72 million each day.
A group of hackers, believed to be responsible for other serious incidents involving major retailers such as Marks & Spencer, has claimed responsibility for the attacks on JLR. A screenshot purportedly from JLR’s internal IT system was shared on a Telegram channel associated with the hacker groups known as Scattered Spiders, Lapsus$, and Shiny Hunters.
This disruption comes at a time when JLR is already experiencing a downturn in profits, exacerbated by US tariffs and declining sales. The automaker reported a 49% drop in pre-tax profits to £351 million for the three months ending in June, which included a time when they temporarily halted exports to the US.
Last year, the company faced backlash regarding the Jaguar brand, and the launch of its new electric vehicle has been pushed back to next year.
Source: www.theguardian.com
