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Jaguar Land Rover (JLR) is gearing up to resume production this week after a significant cyber-attack prompted the automaker to halt operations and send employees home. The manufacturing process will kick off at JLR’s engine plant in Wolverhampton, with a gradual return expected at other sites before reaching full capacity over the following weeks. Cyber intruders targeted JLR in late August, forcing a shutdown that affected the company’s three UK facilities in the West Midlands and Merseyside.
The cessation of operations has put pressure on JLR’s network of suppliers, including small businesses that rely heavily on the automaker. The hack, attributed to a group called Scattered Lapsus$ Hunters, is causing substantial financial losses for JLR, estimated at around £50m weekly due to disrupted production. Approximately 30,000 individuals are directly employed at JLR’s plants, with an additional 200,000 working for supply chain firms.
The interruption has had a deep impact on firms like Evtec Group, a primary supplier to JLR, resulting in idle plants, inventory pileup, and reduced wages for employees. Company chairman David Roberts voiced concerns over the prolonged shutdown affecting communities in the West Midlands. The revival of production at JLR facilities presents a challenging road ahead, as the recovery process is complex and demands time to restore normal operations.
Former Nissan executive Andy Palmer highlighted the strain on the supply chain post-attack, emphasizing the need for repair and support to prevent additional disruptions. While the government has pledged financial backing to JLR for aiding suppliers, some industry leaders, including Mr. Roberts, criticize the lack of substantial support to revive the advanced manufacturing sector. He underscored the urgency for direct government action in safeguarding labor costs, alleviating financial burdens, and offering tax relief to facilitate recovery for affected firms in the supply chain. The government has affirmed its commitment to assisting JLR in collaboration with cybersecurity experts to address concerns and restore production capabilities
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