Cyber-Hacking Crisis at Jaguar Land Rover Threatens Thousands of Jobs

Strategic Insights -

A motor industry expert, Prof David Bailey of Birmingham University, has warned that the cyber-hacking crisis at Jaguar Land Rover poses a significant threat to the livelihoods of thousands of workers in the car parts supply chain. He has called on the Government to introduce a furlough and emergency-loan scheme to protect jobs in the Black Country, where many small and medium-sized suppliers are already feeling the strain of production disruption. Prof Bailey estimates that the economic impact of the hack could reach £3.6 billion, with a potential loss of profit of over £200 million, if production is not resumed until November.

Key Takeaways:

  • The cyber-hacking crisis at Jaguar Land Rover has already led to companies in the supply chain laying off workers and seeking emergency loans to tide them over.
  • Prof Bailey estimates that 100,000 people are employed by companies in the Jaguar Land Rover supply chain, many of them in the Black Country.
  • The economic impact of the hack could reach £3.6 billion, with a potential loss of profit of over £200 million, if production is not resumed until November.
  • The supply chain is already feeling the strain, with companies running out of cash and facing bankruptcy due to reduced production.
  • Prof Bailey has called on the Government to introduce a furlough and emergency-loan scheme to protect jobs in the car parts supply chain.
  • Such schemes are common in countries like Germany, where the Government has a system in place to support companies affected by specific shocks.
  • The crisis has highlighted the need for major changes in the way the car industry operates, particularly with regard to bespoke design and 'just in time' delivery.

Statistics:

  • 100,000 people are employed by companies in the Jaguar Land Rover supply chain (source: Prof David Bailey, Birmingham University).
  • £1.7 billion is the estimated-hit to revenue if production does not resume until September 24 (source: Prof David Bailey, Birmingham University).
  • £3.6 billion is the estimated-hit to revenue if production does not resume until November (source: Prof David Bailey, Birmingham University).
  • £200 million is the potential loss of profit if production does not resume until November (source: Prof David Bailey, Birmingham University).
  • £2.5 billion is the profit made by Jaguar Land Rover in the year to March (source: Prof David Bailey, Birmingham University).

Sources:

  • Professor David Bailey, Birmingham University
  • Exact text as mentioned in the original source material.