JLR cyber attack latest news: Jaguar Land Rover extends production halt after bosses say attack 'more disruptive than M&S'
British carmaker Jaguar Land Rover has announced that it has extended its current pause in production.
It has extended its current pause in production until September 24, following a disruption from a cybersecurity incident disclosed earlier this month. JLR is still unable to build any cars at any of its global factories three weeks on from a cyber attack that crippled its business.
Worries are now growing that those in its supply chain could go bankrupt. The Jaguar and Land Rover maker was targeted by hackers on 1 September and is still in the process of rebuilding its computer systems. The group that hit Marks & Spencer earlier this year has claimed responsibility.
This has led to production shutdowns at all of JLR's global plants, parts ordering issues and retailers being stifled. A timescale for a fix is yet to be announced.
The effect could be costing JLR up to £5 million a day, business economics professor David Bailey told Autocar last week. Former Aston Martin CEO Andy Palmer told the BBC: “I would not be at all surprised to see bankruptcies.”
To prevent widespread job losses, the government is facing calls for a furlough scheme to be set up, similar to that used during the Covid pandemic. This would involve the government subsidising workers' pay packets while they are unable to do their jobs, taking the burden off their employers.
One of those making the call is Commons Business and Trade Committee chairman Liam Byrne. The Labour MP said: "What began in some online systems is now rippling through the supply chain, threatening a cashflow crunch that could turn a short-term shock into long-term harm. We cannot afford to see a cornerstone of our advanced manufacturing base weakened by events beyond its control."
The general secretary of trade union Unite, Sharon Graham, has also called for a furlough scheme. JLR has told the government that the cyber attack it is battling is more disruptive and complex than the hacks that hit Marks & Spencer and the Co-op earlier this year, warning that some of its suppliers are unlikely to survive without taxpayer support.
Executives from JLR have been in daily contact with the Treasury and the Department for Business and Trade (DBT). Staff at the National Crime Agency and the National Cyber Security Centre are also assisting.
Executives are due to meet DBT officials in London on Tuesday to update them on the effect of the stoppage on the network of suppliers, discuss how much support may be needed and whether it should take the form of loans or grants.