Jaguar Land Rover will reportedly resume some manufacturing production on Monday as it continues to recover from a major cyber attack. According to the BBC, manufacturing processes will initially restart at the company's engine factory in Wolverhampton. The move marks the beginning of what JLR describes as a "controlled, phased restart of our operations".
The British car maker paused all manufacturing at the start of September after being targeted by hackers on August 31st. The cyber attack impacted factories in Halewood on Merseyside and Solihull in the West Midlands, as well as the Wolverhampton engine manufacturing site. JLR had recently extended the production pause until at least October 1st.
Financial impact mounts
Experts have warned the production shutdown could hit JLR's bottom line by around £120 million. The firm usually builds about 1,000 cars a day, making the extended pause financially significant. The company has been contacted for comment but has not yet responded.
The shutdown has left suppliers in limbo, prompting calls for urgent financial support. The Government announced it would underwrite a £1.5 billion loan guarantee to JLR to give suppliers certainty over payments. The loan from a commercial bank will help bolster JLR's cash reserves as it pays back companies in its supply chain.
Supply chain concerns
JLR has the largest supply chain in the UK automotive sector, employing around 120,000 people. The network is largely made up of small and medium-sized businesses who have been majorly impacted by the shutdown. Unions and politicians have raised fears that small suppliers producing parts for the car giant could collapse without financial support.
Ministers have been in contact daily with JLR and cyber experts since the attack. Downing Street said it had been "a concerning time for workers at Jaguar Land Rover and, of course, across the supply chain". The company continues working to restart production whilst ensuring system security.
Wider cyber threat
A raft of other businesses have been hit by major cyber attacks in recent months. Beer giant Asahi, high street retailer Marks & Spencer and nursery group Kido Schools have all faced similar security breaches. The incidents highlight the growing threat cyber attacks pose to major British businesses and their supply chains.
Sources used: "BBC" Note: This article has been edited with the help of Artificial Intelligence.
