- JLR plants stay idle for weeks after cyberattack halts production entirely.
- Automaker is losing between $6.8M and $13.6M per day during shutdown.
- Suppliers warn halt could trigger bankruptcies and supply chain chaos.
Jaguar Land Rover is facing one of its toughest moments in recent memory, caught in the middle of a crisis that shows no sign of easing. It has been more than three weeks since a teenage hacking group attacked the British automaker, crippling internal systems and bringing production to a standstill. The company has now confirmed that the shutdown has been extended again, this time until at least October 1.
Ordinarily, more than 1,000 vehicles roll off Jaguar Land Rover’s production lines each day. Yet the Solihull, Halewood, and Wolverhampton sites in the UK have been silent since the cyberattack struck on August 31. The prolonged pause has sparked concern that small and mid-sized suppliers could face collapse if production does not resume soon.
Factories on Pause
In a statement confirming the extended shutdown, JLR said its “focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open.” It added that it recognizes “this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”
Read: Teen Hackers’ JLR Cyberattack Could Lead To Supplier Bankruptcies
This may not be the last time that the production halt is extended. Unnamed sources have told the BBC that the disruption could last into November. However, Jaguar Land Rover has dismissed this as “speculation.”
Counting the Cost
The production shutdown is reportedly costing the carmaker between £5 million ($6.8 million) and £10 million ($13.6 million) per day. Things are so bad that dealerships that staff are relying on manual paperwork to complete registrations.
Several suppliers have told the BBC that they lack the financial resources to cope with an extended shutdown. This prompted former Aston Martin boss Andy Palmer to recently suggest that some of them will go belly up, a sentiment echoed by others.
Supply Chain Under Strain
“We’re already seeing employers having discussions on potential redundancies,” added local union official Jason Richards. “People have to pay rent, they have to pay mortgages and if they’re not getting any pay, what are they supposed to do? We need to have a supply chain into Jaguar Land Rover. I can’t emphasize it enough [because] if they turn the tap on and they’re expecting the supply chain to be waiting on the subs bench, they won’t be there.”
