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Jaguar Land Rover (JLR) has been dealing with a significant crisis over the past two weeks, and unfortunately, there seems to be no end in sight. Following a cyber attack that was first discovered on September 1st, the car manufacturer was forced to shut down its computer systems and halt production globally. This has led to the closure of its factories in Solihull, Halewood, and Wolverhampton, with expectations of remaining inactive until at least Wednesday as the company evaluates the extent of the damage.
The repercussions of this cyber attack have hit JLR hard, with a reported loss of at least £50m so far. However, industry experts highlight that the real damage is being felt by JLR’s network of suppliers, particularly small and medium-sized businesses. Calls have been made for a furlough scheme to be introduced by the government in order to prevent widespread job losses in light of the challenging situation.
David Bailey, a professor of business economics at Aston University, pointed out the potential ripple effect of the JLR shutdown on the extensive supply chain, which supports up to a quarter of a million jobs. With production lines coming to a halt, the company faces significant challenges as it strives to protect its IT networks from further harm. While sales have been disrupted, efforts are being made to restore some level of operation to dealerships despite the ongoing crisis.
The repercussions of the cyber attack are not limited to JLR alone; the impact is felt throughout the supply chain, with smaller suppliers facing immense pressure due to the prolonged shutdown. Suppliers are already making tough decisions, with many forced to lay off employees and cut costs to navigate through this challenging period. As uncertainty looms over the timeline for a return to normal operations, there are growing concerns about the long-term economic consequences on the broader automotive industry and its workforce. Business and Trade Minister Chris Bryant has acknowledged the severity of the situation and assures ongoing efforts to address the issues faced by JLR and its suppliers in the aftermath of the cyber attack
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