Jaguar Land Rover suppliers face bankruptcy due to cyber attack

A two-week-long cyber attack on Jaguar Land Rover (JLR) is threatening to cripple its vast supply chain, with experts and industry leaders warning that some small and medium-sized businesses could face bankruptcy.

The crisis has halted production at JLR’s factories worldwide, leading to millions in lost revenue and sparking urgent calls for government intervention.

While JLR, which posted a £2.5 billion pre-tax profit last year, has the financial muscle to weather the crisis, its suppliers are highly vulnerable.

The company is thought to have already lost at least £50 million from the stoppage to date, with experts estimating the daily cost to be between £5 million and £10 million. However, the most severe impact is being felt by the smaller firms that sit at the top of the automotive supply chain.

“Some of them will go bust. I would not be at all surprised to see bankruptcies,” Andy Palmer, former Aston Martin CEO told the BBC, highlighting the existential threat facing many businesses that rely heavily on JLR for their income. Indeed, one supplier has already laid off 40 people—nearly half its workforce—as a direct result of the disruption.

Professor David Bailey of Birmingham Business School warned that the crisis could have a devastating “knock-on effect” on up to 250,000 people employed within the JLR supply network. In response, a growing number of voices, including the trade union Unite, are calling for the government to introduce a furlough scheme to protect jobs.

Labour MP Liam Byrne, who chairs the Commons Business and Trade Committee, stated that the ripple effect of the hack “could turn a short-term shock into long-term harm.” Business Minister Chris Bryant confirmed the government is “engaging with JLR on a daily basis” to help resolve the issue, as the automotive giant continues the complex process of restarting its IT systems.