Jaguar Land Rover has instructed workers that ‘some’ of its vehicle assembly lines will restart this week as it looks to bounce back from the cyber security attack that has disabled its business for a month.
The British car firm, which has been paralysed since the security breach by hackers on Sunday 31 August, says it is ‘informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days’.
The company’s UK car plants in Halewood, Merseyside, and Solihull in the West Midlands – as well as its engine production site in Wolverhampton – have downed tools since 1 September, along with factories in Slovakia, Brazil and India.
The cyber attack – which is unprecedented for the automotive sector – has meant that JLR is likely to fail to produce a single model in the month of September.
A spokesperson said on Monday morning: ‘As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles.
‘We continue to work around the clock alongside cybersecurity specialists, the UK Government’s NCSC [National Cyber Security Centre] and law enforcement to ensure our restart is done in a safe and secure manner.’
The announcement comes just days after the Government confirmed it will underwrite a £1.5billion loan guarantee to the car giant in the wake of the mass cyber attack.
The loan, from a commercial bank, will be dished out to suppliers who have faced huge uncertainty since the vehicle maker suspended production at the beginning of the month.
Jaguar Land Rover has said it will restart ‘some vehicle production in the coming days’ after suffering a month-long shutdown following the high-profile cyber attack on its global IT systems
The Government will give its backing to the loan through the Export Development Guarantee (EDG), a financial support mechanism aimed at helping UK companies who sell their goods overseas.
It will be paid back over five year and will help to bolster JLR’s cash reserves as it pays back companies in its supply chain.
JLR’s spokesperson on Monday added: ‘We would like to thank everyone connected with JLR for their continued patience, understanding and support.
‘We know there is much more to do but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress.’
Business Secretary Peter Kyle announcing the loan guarantee scheme over the weekend said the cyber breach on JLR was not only an assault on an iconic British brand, but on Britain’s ‘world-leading automotive sector and the men and women whose livelihoods depend on it’.
He added: ‘Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.
‘We’re backing our automotive sector for the long term through our modern industrial strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.’
Unions and politicians have warned since that small suppliers producing parts for the car giant could collapse without urgent financial support.
Chancellor Rachel Reeves said the loan will help to protect ‘a jewel in the crown of our economy’.
The British car firm, which has been paralysed since the security breach by hackers on Sunday 31 August, says it is ‘informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days’
The cyber attack – which is unprecedented for the automotive sector – has meant that JLR is likely to fail to produce a single model in the month of September
Chancellor Rachel Reeves described JLR as `a jewel in the crown of our economy´
Unite general secretary Sharon Graham meanwhile said the loan was ‘an important first step and demonstrates that the Government has listened to the concerns raised in meetings with Unite over recent days’.
She added: ‘This is exactly what the Government should be doing, taking action to protect jobs.
‘The money provided must now be used to ensure job guarantees and to also protect skills and pay in JLR and its supply chain.’
JLR, which is owned by the Indian Tata conglomerate, has stated that it had found no evidence that any customer data had been stolen after it shut down its systems to mitigate impact of the breach.
However, on 11 September it confirmed that a review alongside cyber security experts had identified that ‘some data has been affected’.
JLR, which usually makes about 1,000 cars a day, employs more than 30,000 workers in the West Midlands and on Merseyside
The company’s UK car plants in Halewood, Merseyside, and Solihull in the West Midlands (pictured) – as well as its engine production site in Wolverhampton – have downed tools since 1 September, along with factories in Slovakia, Brazil and India
JLR’s spokesperson on Monday said: ‘We would like to thank everyone connected with JLR for their continued patience, understanding and support’
Cyber groups known as Scattered Spider and Shiny Hunters have claimed responsibility for the hack, saying they exploited an apparent glitch in the company’s IT systems.
They also boasted of gaining access to customer data.
The two organisations, believed to largely comprise teenagers and young men in English-speaking nations, now describe themselves as ‘one and the same’ – while rebranding themselves as ‘Scattered Lapsus Hunters’.
David Bailey, professor of business economics at the Birmingham Business School, told the PA news agency that the month-long pause on JLR operations is likely to significantly dent profits and comes at a challenging period for the company.
‘The value of cars usually made at the sites means that around £1.7billion worth of vehicles will not have been produced, and I’d estimate that would have an initial impact of around £120 million on profits,’ he said.
‘Some of that might be recovered when production restarts but the longer this goes on, the more of a concern this will be.
‘If reports are right that this could last until November, then that could mean around 50,000 cars not being produced.’
