Jaguar Land Rover (JLR) is grappling with a severe global crisis following a crippling cyberattack that has brought its operations to a standstill, leaving customers and suppliers in limbo. The attack, described by JLR as a major "cyber incident," has halted production at its main assembly plants in Solihull and Halewood in the UK, as well as its engine manufacturing centre in Wolverhampton. Globally, production has ceased in Slovakia (including the £1.04 billion Nitra plant), Brazil, and India. Thousands of workers at JLR and its key suppliers in the West Midlands have been temporarily laid off, with factory staff told not to report to work.

The impact of the cyberattack extends beyond manufacturing. JLR's computer systems have been rendered useless, preventing dealerships from performing diagnostic tests, accessing online catalogues for spare parts, and registering new vehicle sales. This disruption was particularly acute during the launch of the new '75' registration plates, typically one of the busiest days for car dealerships. Initially, JLR stated there was no evidence of customer data theft, but an ongoing investigation has since revealed that "some data has been affected," and relevant regulators are being informed. The carmaker is working around the clock with third-party cybersecurity specialists and law enforcement to restart its global applications in a controlled and safe manner.

Recovery efforts are proving to be protracted, with JLR bosses reportedly conceding that making systems operational again will take "a matter of weeks rather than days," and potentially lasting until October or even longer. This situation marks the worst crisis for the West Midlands automotive sector since the enforced shutdown during the Covid pandemic. Major suppliers like Evtec, WHS Plastics, SurTec, and OPmobility, collectively employing over 6,000 UK workers, have been severely impacted and have temporarily laid off their workforces. The incident is estimated to be costing JLR around £5 million per day in lost profits, raising concerns that customers may seek alternatives.

A group calling themselves the “Scattered Lapsus$ Hunters,” affiliated with The Com and connected to Scattered Spider (known for hacks on M&S, Harrods, and the Co-op), has claimed responsibility for the attack. The complexity of restarting production lines, especially with a complete IT system reset, is immense, requiring meticulous reconfiguration for each vehicle's unique identification and specifications.

Amidst this crisis, there is hope for government intervention. Ministers are working closely with JLR to understand the challenges and monitor the situation, with the National Cyber Security Centre providing support. Historically, the government provided £150 million in funding to the automotive supply chain in 2011 after the Fukushima disaster. Such a bailout could be crucial, as the financial losses are described as too vast for a single company to withstand alone. While dealerships are struggling, some independent suppliers of JLR surplus stock have noted a slight increase in customer traffic, as buyers seek alternatives to disrupted official channels.

This cyberattack compounds a series of recent challenges for JLR. Last year, the company faced global backlash over the controversial rebrand of the Jaguar marque, which involved replacing the iconic wild cat logo and a shift towards an electric vehicle lineup targeting younger, richer customers. This rebrand, which drew criticism from figures like Donald Trump, led to operational setbacks, including up to 500 job cuts and a significant decline in European sales as production paused for the electric transition. Furthermore, JLR contended with the threat of proposed 25% import taxes by the US under Donald Trump, impacting its largest single market and leading to temporary halts in shipments. Despite these hurdles, JLR had reported its best financial return in a decade, achieving a £2.5 billion pre-tax profit in the 12 months to March, driven by strong sales of the Slovakian-made Land Rover Defender. However, quarterly profits subsequently dropped by 49% due to protectionist strategies, preceding CEO Adrian Mardell's decision to step down and PB Balaji taking over leadership.