JLR stuck in neutral as losses skyrocket amid cyberattack cleanup
Latest extension to factory closures takes incident response into fourth week
Jaguar Land Rover (JLR) has announced a further extension to its multi-site global shutdown, bringing its cyber-related downtime to nearly four weeks.
The carmaker said on Tuesday that staff had been informed that production will remain suspended until September 24.
"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," it said.
"We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses."
Its announcement follows reports of suppliers facing extreme financial difficulties, as its UK sites in Halewood, Solihull, and Wolverhampton, and overseas in China, India, and Slovakia have all ground to a halt.
JLR suppliers in the West Midlands, France, and Germany previously confirmed to Sky News that they have had to make temporary layoffs as a result of the issues at the auto giant.
Around 6,000 jobs at Evtec, WHS Plastics, SurTec, and OPmobility were affected, the suppliers told the broadcaster.
The Register approached each for additional information, following the latest update.
Fears are growing for the viability of businesses elsewhere in JLR's supply chain, with the number of jobs supported by JLR thought to be at least 100,000 globally.
Unite, a trade union representing workers in the automotive industry, said it too had received reports of JLR-related layoffs across the company's supply chain, and called for a COVID-style support package for individuals whose jobs are at risk.
It called on the government to introduce a furlough scheme, similar to that introduced in the early weeks and months of the COVID-19 pandemic.
The scheme allowed businesses to claim 80 percent of a worker's salary on the government's dime, which could be used to pay the worker a reduced wage while they were placed on temporary leave, allowing them to retain employment during periods of financial difficulty felt by many businesses during that period.
Economists have estimated JLR's daily revenue losses to be in the £5-10 million range ($6-13 million).
The Tata Motors subsidiary officially shut its sites on September 2, although it's understood that the shutdown began on August 31, meaning its potential losses could reach £240 million ($327 million), not including any further closures beyond next week.
Suppliers reportedly told The Telegraph that JLR informed them the disruption could bleed into November, and it could take three to four weeks just to begin production again after the incident is contained, though JLR denied issuing this guidance.
The attack was claimed by Scattered Lapsus$ Hunters, who were linked to attacks on M&S, Co-op, and Harrods over the summer. ®