On the Dash:
- Jaguar Land Rover reported a $750 million third-quarter loss after a cyberattack halted production for nearly six weeks.
- The cyberattack, coupled with U.S. tariffs, forced a full-year profit margin cut and $3.3 billion projected cash burn.
- Tata Motors’ Indian operations and EV sales provided some relief, while leadership transition and Jaguar brand rebranding continue.
Jaguar Land Rover (JLR) slashed its full-year outlook after a severe quarterly loss in the aftermath of a cyberattack. During the third quarter, JLR suffered a $750 million quarterly loss, compared with a prior-year profit of $375 million. The automaker anticipated its full-year profit margin would be wiped out, while free cash burn is projected at $3.3 billion.
The cyberattack began in early September, forcing JLR to halt production for nearly six weeks. The incident’s profound economic impact, coupled with the pressure from increased U.S. tariffs, forced the UK government to intervene and offer the automaker a $2 billion emergency loan guarantee to support financially fragile suppliers. The company resumed operations on Oct. 7, and production has returned to near-normal levels. The attack cost JLR a one-time $250 million, and the company also created a $658 million financing program to accelerate cash flow to qualifying suppliers.
During the third quarter, JLR’s revenue fell 24% and retail sales dropped 17% year-over-year. Wholesale volumes also declined. The automaker expects additional costs in the current quarter and acknowledged that not all lost sales volume can be recovered, given global demand constraints and competitor oversupply.
JLR’s parent company, Tata Motors, reported a 14% decline in group revenue due largely to the JLR disruption, though one-time gains from the separation of its commercial vehicles business helped offset some losses. Meanwhile, Tata CFO P.B. Balaji is set to succeed Adrian Mardell as JLR CEO later this month, as the company navigates its recovery and long-term brand transition.
