Jaguar Land Rover posts losses of £485 million following cyber attack

Jaguar Land Rover (JLR) has reported a £485 million pre-tax loss for the three months to September, primarily due to a severe cyber attack.

This sharp financial downturn is a brutal reversal from the £398 million profit posted during the same period last year.

The loss shatters the carmaker’s run of 11 consecutive profitable quarters.

The crisis began in late August when the cyber attack forced JLR to shut down its entire computer network. This left the company unable to operate its highly-automated production lines throughout September and into early October. Car sales and parts supply were also heavily impacted.

In addition to the headline loss, JLR reported £196 million in exceptional “cyber related costs,” covering expenses including hiring global IT consultants to help restart systems.

The extensive production halt contributed significantly to a 24% drop in revenues for the quarter, falling from £6.5 billion to £4.9 billion.

Other factors included US tariffs on exported cars and the winding down of older Jaguar models ahead of its planned re-launch as an all-electric brand.

The crisis sent shockwaves through the wider economy. The production loss of approximately 27,000 vehicles knocked 0.17% off the UK’s economic output in September.

This contributed to September’s UK car production hitting its lowest level since 1952. JLR sits at the top of a complex supply chain, and the stoppage forced numerous suppliers, including small and medium-sized businesses, to halt operations too.

JLR’s chief executive, Adrian Mardell, described the event as an “incredibly difficult period” but confirmed that operations are now recovering “at pace.” Production has returned to normal levels, with all plants running at or approaching capacity.

The government offered a guarantee on a loan facility of up to £1.5 billion to aid the supply chain. While JLR has not drawn on this government funding, the company set up a separate financing scheme to provide early payment to 56 key suppliers, helping to ease their cashflow concerns.