JLR Resumes Production After Cyber-Attack, Restarts UK Lines
Jaguar Land Rover (JLR) is set to resume production today, ending a five-week shutdown caused by a cyber-attack. The restart will bring relief to the company's 30,000 UK workers and around 120,000 employed in the supply chain.
The phased reopening will begin with the restart of Range Rover and Range Rover Sport production lines later this week. Operations in Slovakia, where the Defender and Discovery are made, will also resume. The UK Government has provided support, including a £1.5billion loan guarantee to ensure suppliers receive timely payments. JLR has also launched a financing program to advance payments to suppliers, supporting around 1,000 small firms.
The cyber-attack has had a significant impact on JLR's sales and revenue. Between July and September, the company sold 85,495 vehicles, a 17.1% decrease compared to the same period last year. UK sales were down nearly a third due to the shutdown. JLR estimates the shutdown cost it around £2billion in lost revenue, with around 1,000 vehicles typically rolling off production lines daily. The company has also faced challenges from higher US tariffs and the phasing out of older Jaguar models as it shifts to electric vehicles.
Today's restart marks a crucial step in JLR's recovery. The company's manufacturing operations in the West Midlands and Merseyside, including its engine plant in Wolverhampton and battery centre in Birmingham, will reopen. The new financing arrangement for suppliers will also help support the recovery. However, the full resumption of production at Halewood, where the Discovery Sport and Range Rover Evoque are built, is yet to be confirmed.
