Ministers are considering stepping in to support Jaguar Land Rover’s suppliers after the carmaker was forced to suspend production due to a cyber-attack. The attack at the end of August forced JLR to shut down its IT networks, and its factories are expected to remain suspended until October 1 at the earliest. Fears are growing that some suppliers, particularly smaller firms who rely solely on JLR’s business, could go bankrupt without financial support. One idea being explored is the government buying the component parts the suppliers build, a scheme aimed at keeping these companies afloat until production lines are up and running again.
However, suppliers have expressed skepticism about the success of such a scheme. One unnamed supplier told the BBC that to say they are disappointed “is an understatement,” adding that the government “simply don’t understand the complexity of what they’re dealing with,” and that they “don’t need promises, we need help.” When asked about the government’s plans, Chancellor Rachel Reeves said the focus was on getting the business running again and that the government would do “everything we can to stand by the company and the wider supply chain.”
A Novel Approach to Cyberattack Fallout
JLR, which is owned by India’s Tata Motors, normally builds about 1,000 cars a day at its three factories in the UK. Approximately 30,000 people are directly employed at the company’s plants, with an additional 100,000 working for firms in the supply chain. If the government were to step in and offer financial assistance, it is believed to be the first time a company would have received such help as a result of a cyber-attack. While unions have called for a Covid-style furlough scheme, ministers have ruled this out due to its likely cost. Other options being considered are government-backed loans to suppliers, though this is understood to be unpopular with them. Former Conservative mayor of the West Midlands, Andy Street, said he supports offering government-backed loans to the “very successful” companies in JLR’s supply chain.
An investigation is underway into the attack, which is costing the company an estimated £50 million a week in lost production. It has been reported that JLR was not able to finalize an agreement for insurance against a cyber-attack ahead of the incident. A group calling itself Scattered Lapsus$ Hunters has claimed responsibility for the hack on JLR as well as other UK businesses like Marks & Spencer and the Co-op. The Business and Trade Select Committee is due to meet to hear testimonies from businesses in JLR’s supply chain, with the evidence to be shared with the government.
The Broader Context of UK Cyberattacks
Experts say the JLR attack is a strong reminder of the vulnerabilities of modern industry, where a single incident can have a far-reaching impact. Senior government figures are concerned about a pattern of cyber-attacks on UK institutions and businesses. The government has traditionally offered technical assistance from experts at places like the National Cyber Security Centre, but this is the first time financial support is being considered. Meanwhile, JLR also has large factories in Slovakia and China, as well as a smaller facility in India, which have also been affected by the shutdown.
What The Author Thinks
The government’s consideration of financial support for JLR’s suppliers marks a precedent-setting moment for cybersecurity policy. While the government has traditionally offered technical assistance after an attack, this potential move into direct financial aid signals a new understanding of cyberattacks as a national economic threat, not just a corporate one. This decision could set a new standard for how governments respond to future cyber incidents, where the state becomes the insurer of last resort for a company’s digital vulnerabilities. It highlights the increasingly fragile nature of modern, interconnected supply chains and suggests that the government is recognizing that a private sector cyber-attack can have public, national consequences that require a collective response.
Featured image credit: Grahame Jenkins via Unsplash
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