JLR Recovers IT Systems Post-Cyberattack Amid Supplier Concerns
Jaguar Land Rover (JLR) is in the process of recovering from a significant cyberattack that disrupted its operations and led to extensive financial losses. Following the incident, JLR has initiated a phased restart of its IT systems, enabling a limited number of operations to resume, including invoicing and financial processes that are crucial for cash flow within the supply chain. However, concerns have been raised regarding the financial stability of JLR’s suppliers, many of whom are reportedly facing severe cash flow issues, with some having only 7 to 10 days of funds remaining to sustain their businesses. Labour MP Sarah Edwards highlighted the urgent need for JLR to enhance communication and expedite payments to its suppliers, noting that some have not been paid since late August. Suggestions include potential government intervention to purchase parts from suppliers to maintain their operations until JLR’s production resumes. This situation not only underscores the vulnerabilities within JLR’s supply chain but also reflects broader implications for the automotive industry, revealing the interconnected nature of production and the critical importance of robust cybersecurity measures. A targeted emergency loan scheme and new cyber insurance measures are being discussed to support affected firms in this challenging environment.
