Jaguar-Land Rover Production Won’t Restart Until Next Week At The Earliest Following Massive Cyberattack
By Justin Hughes
Copyright jalopnik
The Jaguar Land Rover shutdown caused by a cyberattack at the beginning of September has a potential end date. Hopefully, things will be sorted by September 24, Autocar reports that JLR has had a hard time finding a fix for its systems, leaving factories dormant as the shutdown enters its third week. Not only is JLR losing up to $5.8 million a day, but parts suppliers are beginning to lay off workers as a result of the work stoppage, according to the BBC. Some suppliers could even go out of business if the shutdown continues.
This is a smaller version of what we saw during the pandemic. While large parts suppliers can weather such a storm, smaller ones, particularly those specializing in parts for Jaguars or Land Rovers, may not be able to, former Aston Martin CEO Andy Palmer said to the BBC.
“Some of them will go bust. I would not be at all surprised to see bankruptcies.”
“You hold back in the first week or so of a shutdown. You bear those losses. But then, you go into the second week, more information becomes available – then you cut hard. So layoffs are either already happening, or are being planned.”
The BBC also confirmed that one unnamed JLR supplier had already laid off 40 people, almost half of the company. Others are telling workers to stay home, hoping to put them back to work once JLR resumes production. Union and government officials are calling for a furlough program to pay employees and help them get by until the situation is resolved and they can return to work. This could be wise, as insufficient staffing at part suppliers could further delay JLR production, as we saw with Toyota and Corvette production during the pandemic.