JLR Cyberattack Halts UK Production, Threatens Auto Supply Chain Collapse

Jaguar Land Rover (JLR) has been forced to halt production at its UK factories since a cyberattack in late August, with operations expected to remain suspended until at least October 1. This shutdown has caused significant financial strain, with losses estimated between £5 million and £10 million per day, and has disrupted the entire supply chain, putting smaller suppliers at risk of collapse within weeks due to cash flow shortages. JLR has been working to clear a backlog of payments to suppliers, having paid roughly £300 million recently, and is prioritizing those under the most pressure while manually processing payments due to IT system outages. The extended stoppage is causing concerns over potential job losses and bankruptcies among suppliers, which could result in long-term component shortages and production difficulties once operations resume. There are discussions about government intervention, including possible emergency financial support and purchasing parts from suppliers to keep them afloat. Industry experts emphasize the fragility of the supply chain, warning that the failure of smaller tier suppliers could cause significant challenges in sourcing vital components, threatening the broader automotive ecosystem connected to JLR.