Business

Jaguar Land Rover could face £120 million hit due to cyber attack closure

By Hannah Ahmed

Copyright birminghammail

Jaguar Land Rover could face £120 million hit due to cyber attack closure

Jaguar Land Rover (JLR) could face an eye-watering £120 million hit to its finances experts have warned after the manufacturer confirmed the extension of its shutdown for another week. The company announced today (September 23) it would extend the pause on production until at least Wednesday October 1 as it continues to battle with the fallout of the cyber attack. This comes after JLR was forced to stop production at its sites across the country, including multiple in the West Midlands, due to a cyber attack at the end of last month. The Halewood, on Merseyside, and Solihull were all halted, in addition to the engine manufacturing location in Wolverhampton. READ MORE: JLR shutdown extended further after cyber attack A statement from the brand said: “Today we have informed colleagues, suppliers and partners that we have extended the current pause in production until Wednesday 1 October 2025, following the cyber incident. “We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation. “Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC [National Cyber Security Centre] and law enforcement to ensure we restart in a safe and secure manner. “Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open. “We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.” The car firm has also reportedly told suppliers that disruption could last into November. Staff have been told not to return to work while production lines remain affected. “We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time,” a JLR spokesman said. “We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses.” JLR has said it is “working around the clock” to get things running again, including bringing in cyber security specialists and introducing workarounds to keep activity going. However, the cost of the prolonged period of disruption is likely to be damaging for the manufacturer, which is thought to usually build about 1,000 cars a day. Read more: JLR’s ‘deep and irreversible’ warning as MPs make cyber-attack plea David Bailey, professor of business economics at the Birmingham Business School, told the PA news agency that the pause is likely to significantly dent profits and comes at a challenging period for the company. “The value of cars usually made at the sites means that around £1.7 billion worth of vehicles will not have been produced, and I’d estimate that would have an initial impact of around £120 million on profits,” he said. “Some of that might be recovered when production restarts but the longer this goes on, the more of a concern this will be. “If reports are right that this could last until November, then that could mean around 50,000 cars not being produced.” Mr Bailey also raised concerns that the halt to production could threaten the future of some smaller businesses within JLR’s supply chain. It is understood that executives from JLR will speak to Department for Business and Trade officials on Tuesday to call for financial support for supply chain firms. Trade union Unite also warned that thousands of workers in JLR’s supply chain are at risk of losing their livelihoods as a result of the production freeze. It called on the Government to introduce a furlough scheme to secure people’s jobs while work to recover its operations continues. It said that those directly employed by JLR were not at risk of losing their jobs. Meanwhile, JLR said last week it believed “some data” had been accessed in the hack although it did not specify who has been affected, such as customers or staff. The company said it was contacting people if it found their data had been affected. The Prime Minister’s official spokesman said there were currently no discussions about offering taxpayer help to JLR amid the production pause, but said the Government is providing “cyber expertise” following the hack.