Jaguar Land Rover Suppliers Warned of Possible 7-Week Production Delay

Jaguar Land Rover (JLR) suppliers have been informed that car production may not resume until November due to a devastating cyber attack that has crippled the company's computer systems. The shutdown has already lasted two weeks, with thousands of plant workers temporarily sent home. Senior insiders have indicated that production could be knocked out for another seven weeks, with some JLR figures divided on how long the shutdown would drag on. A November restart is considered a "credible" estimate, with a ramp-up period of three to four weeks needed to return to normal production levels.

Key Takeaways:

• JLR suppliers have been warned that production may not resume until November, with a possible seven-week delay.
• The cyber attack, claimed by a group of hackers linked to a string of breaches at British retailers, has paralyzed the company's factory lines and sent thousands of plant workers home.
• The shutdown could prevent JLR from producing almost 50,000 cars and cost billions of pounds in lost sales.
• Suppliers, including small casting, forging, machining, and moulding companies, will face significant financial pressure, with some at risk of collapse.
• Unions have called for taxpayer support to be provided to suppliers to prevent vital jobs and skills from being lost.
• JLR has been receiving daily support from the Government and experts at the UK's National Cyber Security Centre, an arm of GCHQ.
• Andy Palmer, former Nissan and Aston Martin chief, fears that smaller suppliers reliant on JLR may go bust due to the crisis.
• Industry insiders warn that the chaos risks making a resumption of production harder and could spread to rival luxury marques that share suppliers with JLR.
• JLR is currently missing out on production of around 1,000 cars per day, losing an estimated £72m in daily sales.
• Suppliers are facing millions of pounds in missed or delayed payments due to JLR's automated payment system being largely knocked offline.

Statistics:

• 50,000: Number of cars that JLR may not produce due to the cyber attack and resulting production delay.
• £2 billion: Estimated loss in sales due to the production delay.
• 3-4 weeks: Ramp-up period needed to return to normal production levels after the crisis.
• 1,000: Number of cars that JLR is currently missing out on producing per day.
• £72m: Estimated daily sales lost by JLR due to the production delay.
• 200,000: Number of people involved in JLR's wider UK supply chain.
• 39,000: Number of people directly employed by JLR.

Sources:

• The Telegraph: "Jaguar Land Rover's suppliers warned of possible 7-week production delay"
• The Telegraph: "Jaguar Land Rover 'warned of cyber attack' as hackers claim responsibility"
• The Telegraph: "Jaguar Land Rover's suppliers on brink of collapse as crisis deepens"
• The Telegraph: "Jaguar Land Rover in talks with Government over rescue package for suppliers"
• Unite: "Unite calls for taxpayer support for Jaguar Land Rover suppliers"