Jaguar Land Rover (JLR) is set to resume production this week following a significant cyber-attack that led to factory shutdowns. The first site to reopen will be the engine factory located in Wolverhampton. However, full operational capacity may take several weeks to achieve across all locations.
Impact of the Cyber-Attack on JLR
The cyber-attack, which occurred at the end of August, forced JLR to halt operations at its three UK sites in Solihull, Halewood, and Wolverhampton. This disruption also affected JLR’s global factories in Slovakia, China, and India. As a result, the attack has cost the company around £50 million weekly in lost production.
Approximately 30,000 employees work directly at JLR’s plants, while an estimated 200,000 individuals are employed within its supply chain. Many suppliers are small businesses facing significant financial strain due to the production halt.
Supplier Concerns
- Evtec Group, a major supplier for JLR, has also been adversely affected by the shutdown.
- Evtec employs 1,250 staff mainly in the West Midlands, with layoffs impacting communities significantly.
Evtec’s chairman, David Roberts, expressed concerns over the long-term effects on both employees and the community. Workers are returning gradually, but uncertainty about job security remains high.
Recovery Process
While JLR is actively working on a recovery plan, industry experts caution that restoring production will take time. The company indicated that its global parts logistics is returning to standard operations but emphasized that restarting manufacturing is complex.
Some industrial processes require days to reactivate, and the phased restart means that supply chain issues persist. Andy Palmer, a former executive at Nissan, highlighted the broken supply chain that demands repair. He indicated that some suppliers might fail to recover from the financial setback.
Government Support
The UK government has offered loan support to JLR to assist suppliers. However, there are criticisms about the effectiveness of this aid. Roberts described the government’s efforts as a “toothless solution” and called for more direct assistance for sectors reliant on advanced manufacturing.
With ongoing support discussions, the government has assured JLR it remains in daily contact, listening to concerns related to the recovery and production resumption.
In summary, JLR is gradually working to restart production after a substantial cyber-attack that has not only impacted its operations but also posed significant challenges for its supplier network.
