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Billions at Risk: Jaguar Land Rover Grapples with Devastating Cyberattack Fallout

Published 4 weeks ago3 minute read
Billions at Risk: Jaguar Land Rover Grapples with Devastating Cyberattack Fallout

Jaguar Land Rover (JLR) has been significantly impacted by a cyberattack that commenced at the end of August, forcing a complete shutdown of its IT networks and manufacturing operations. The automaker has confirmed that vehicle production at its factories will not resume before October 1. This operational halt is reportedly costing JLR approximately $70 million per week in lost production, with the BBC highlighting that several of the company’s smaller suppliers are now facing potential bankruptcy. Financial analysts have suggested that the total revenue impact on JLR could escalate to as much as $4.7 billion if production remains suspended until November. The revelation that the cyberattack could cost JLR substantially more than its reported $2.4 billion pre-tax profit for the financial year ending March 2025 led to a 4 percent slump in the stock price of its parent company, Tata Motors. Further exacerbating the financial strain, JLR reportedly lacked insurance coverage against such a cyberattack, meaning it will bear the full financial burden.

A group identified as Scattered Lapsus$ Hunters, which has been linked to previous cyberattacks on major British retailers this year, has claimed responsibility for the JLR hack. While JLR, with its factories in the U.K., Slovakia, and India, and a direct workforce of over 30,000 employees, acknowledged two weeks prior that data might have been stolen, it has refrained from disclosing specific details regarding the breach.

This cyberattack comes at a challenging time for JLR, following a 49 percent decrease in pre-tax profits in the three months to June 30. This decline was largely attributed to the imposition of steep tariffs on vehicles imported into the U.S. by President Trump. Unlike many luxury European automakers such as BMW and Mercedes-Benz, JLR lacks a manufacturing footprint in America, which made it particularly vulnerable to these tariffs. The company responded by pausing shipments to the U.S. for a month in April to reassess its strategy. Although a subsequent trade deal between the U.K. and the U.S. reduced tariffs from 27.5 percent to 10 percent, the initial shipping pause contributed to a nearly $1 billion drop in revenues compared to the previous year.

Adding to its woes, the cyberattack has also coincided with reports of significant delays in the launch of several anticipated new electric models. Deliveries of the electric-powered, full-size Range Rover, initially slated for late 2025, have been postponed to the first quarter of next year. Similarly, the electric-powered Range Rover Velar, originally planned for production in April 2026, has reportedly been delayed. The introduction of an electric-powered Defender may now not occur until the first quarter of 2027. Furthermore, the launch of the production version of the controversial Jaguar Type 00 concept, intended to relaunch the Jaguar brand, has slipped several months, now expected in August 2026. The second vehicle in the entirely new, radically redesigned, electric-powered Jaguar lineup is also anticipated to be delayed, possibly not appearing until early 2027.

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