Luxury car-maker Jaguar Land Rover announced on Tuesday that it will not resume vehicle manufacturing operations until at least September 24, extending the production pause into its third week due to a cyberattack earlier this month. The company, which is owned by Indian giant Tata Motors, said in a new statement that it had informed colleagues, suppliers, and partners of the decision. According to the company, the halt is necessary for “the controlled restart of our global operations, which will take time.” A spokesperson for Jaguar Land Rover declined to provide more updates.
Significant Financial Impact
The IT and manufacturing shutdown is estimated to be costing the company a significant amount each week in lost production. According to one report, the cost is at least £50 million (roughly $68 million) each week, as the company is unable to produce its usual 1,000 cars per week. Another British newspaper reported the estimated losses to be even higher, at £72 million (almost $100 million). The losses are not limited to the company itself; suppliers for Jaguar Land Rover are concerned they won’t be able to manage such a long shutdown and fear bankruptcy.
Author’s Opinion
This cyberattack on a major automaker highlights the extreme vulnerability of modern, interconnected supply chains. The reliance on just-in-time manufacturing and complex digital systems means that a single point of failure—like a cyberattack—can have a cascading effect, leading to massive financial losses and even threatening the existence of smaller suppliers. This event serves as a stark reminder that in a hyper-digitalized world, cybersecurity is no longer just an IT issue; it’s a fundamental business and operational risk that can halt production and cause a financial shockwave throughout an entire industry’s ecosystem.
Featured image credit: Michael Heuser via Unsplash
For more stories like it, click the +Follow button at the top of this page to follow us.