by Cyberattack on Jaguar Land Rover: Consequences and Response
The Jaguar Land Rover company is still suffering from a large-scale cyberattack that occurred on August 31st. According to reports, the attack was carried out by a group of teenagers. More than two weeks later, car production has still not resumed, and the earliest it can be restarted is only on September 24th. This not only causes financial losses for the manufacturer itself but also negatively impacts small and medium-sized suppliers, some of whom may even go bankrupt.
Stoppage of Production Lines
Under normal conditions, the British automaker produces over 1000 cars daily. However, not a single vehicle has been manufactured since the cyberattack. The company confirmed that it shut down its IT networks to prevent further damage. Since its assembly lines and supply systems are highly automated, this measure also made it impossible to continue production.
According to experts, JLR is losing between £5 and £10 million pounds per day. Furthermore, numerous suppliers who are heavily dependent on Jaguar Land Rover are also feeling the consequences. Former Aston Martin executive Andy Palmer believes there could be bankruptcies among them.
Some of them will go bankrupt. I wouldn’t be at all surprised to see bankruptcies, — Palmer said. — You hold on through the first week of downtime, absorbing those losses. But then, in the second week, when more information emerges, you sharply cut costs. Thus, layoffs are either already happening or being planned.
One unnamed supplier reported laying off 40 people, which is almost half of its staff.
Parliament’s Reaction
The seriousness of the crisis has attracted the attention of legislators, who are calling on the government to take action. Labour’s Liam Byrne, chair of the Business and Trade Committee, stated that the wider impact of the cyberattack cannot be ignored and called on officials to intervene.
What started in some online systems is now spreading through the supply chain, threatening a cash flow crisis that could turn a short-term shock into long-term damage, — he said. — We cannot afford to see a cornerstone of our advanced manufacturing base weakened by events beyond its control.
Unite union General Secretary Sharon Graham called on the government to create a system of paid furlough, where the state would subsidize employees’ wages while they are unable to work.
Thousands of these workers in the JLR supply chain now face the immediate threat of job loss due to the cyberattack, — Graham said. — Ministers must act quickly and introduce a furlough scheme to guarantee that vital jobs and skills are not lost while JLR and its supply chain return to normal.
Who is Behind the Attack
Responsibility for the attack was claimed by the group Scattered Lapsus$ Hunters. The collective, reportedly consisting of teenagers, has been linked to several previous breaches. Group members communicate via Telegram and, after the attack on JLR, began mocking MI6, the National Cyber Security Centre, and the UK’s National Crime Agency.
Investigators believe the hackers exploited a vulnerability in software provided by SAP to launch a ransomware attack that severely disrupted JLR’s digital infrastructure.
This situation highlights how vulnerable even large corporations can be to cyberattacks, especially when they rely on automated systems. Prolonged downtime not only causes financial damage but also creates a ripple effect for the entire supplier ecosystem. In the future, companies will likely have to review their cybersecurity approaches, invest in more robust systems, and develop contingency plans for such incidents to minimize risks to the business and its partners.
