On the Dash:
- Jaguar Land Rover has extended its UK factory shutdown to September 24 after a cyberattack disrupted IT systems worldwide, halting vehicle assembly and staff shifts.
- The stoppage is costing the company an estimated five million pounds ($6.76 million) per day, while suppliers warn of potential bankruptcies and the UK trade union calls for government support.
- The cyberattack compounds existing pressures, including weaker demand in China and Europe, delays to EV launches, and lower projected profit margins for fiscal 2026.
Jaguar Land Rover (JLR), Britain’s largest carmaker, has extended its production freeze at UK plants to September 24 after a cyberattack forced the shutdown of the company’s systems earlier this month. The stoppage, now lasting more than three weeks, is costing the automaker an estimated five million pounds ($6.76 million) per day.
The cyberattack, first detected on September 1, prompted JLR to shut down IT services globally, halting operations at all three UK factories. These plants typically produce about 1,000 cars per day. The company has asked roughly 33,000 employees to stay home as it continues forensic investigations and plans a controlled, phased restart of operations. JLR confirmed that some data was affected, but has not specified whether customers, suppliers, or internal systems were impacted.
The disruption poses a serious threat to JLR’s British supply chain, which supports about 104,000 jobs across smaller companies. Suppliers report dwindling cash flow, with some warning of potential bankruptcy if the halt continues. The Unite trade union has expressed concern about job losses and urged government support in light of the extended stoppage.
While JLR maintains that production will resume on September 24, British media reports have suggested the shutdown could last until November. The company denied those reports, emphasizing that the timeline depends on completing its cybersecurity review and safely restarting global operations.
The cyberattack comes amid broader challenges for JLR, including weaker demand in China and Europe and delays in launching electric vehicle models. In July, the automaker reported an 11% drop in quarterly sales, partially due to temporary U.S. shipment pauses from tariff issues. JLR also lowered its fiscal 2026 profit margin target to 5%-7% from 10%, citing ongoing trade uncertainty.
