Cyberattack hits Jaguar Land Rover

A “PERFECT STORM” of four factors is causing mounting losses at Jaguar Land Rover (JLR): US tariffs, slumping Chinese sales, a production pause precipitated by a cyberattack that started on 31 August and a self-imposed production stop at Jaguar as it transitions to all EVs by 2026.

Most pressing is the cyberattack that, at current estimates, put JLR’s loss of profit (from the attack alone) at £70 million ($A143 million) as it hits Range Rover production in Solihull, England a plant that usually produces some 1000 cars a day… and other associated production facilities.

The cyberattack is reputed to have caused JLR to lose more than £1 billion (about $A 2.0b) in revenue, according to industry insiders and has furloughed many of JLR’s 33,000 workers.

And the fallout is continuing as JLR is still unable to build cars, track prebuilt models ahead of sale or ship parts as a result of the hack.

Automotive News Europe reports the speculated revenue loss, and associated loss of profit, from academic David Bailey, professor of business economics at the Birmingham Business School.

“The company might be able to recover some of that, but the longer it goes on the more permanent the hit,” he said.

In addition to Solihull, the attack forced the closure of JLR facilities at Halewood, its Wolverhampton engine facility and its Castle Bromwich parts plant, along with production facilities in Slovakia, China and India.

Confidently, JLR said in a statement that the production pause will end on 24 September making a three-week dent in Range Rover production which insiders say it might be able to pull back over time.

“We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time,” said Jaguar Land Rover in a statement.

ANE says in July JLR reported an 11 per cent drop in quarterly sales “partly due to a temporary pause in US shipments after tariffs were imposed”.

“Although exports resumed in May, the company cut its profit margin target for fiscal 2026 to five per cent to seven per cent, down from 10 per cent, citing trade uncertainty,” it added.

JLR said in July that it would cut 500 management jobs to “align its leadership workforce for the business’s current and future needs”.

ANE says the shutdown has had a ripple effect throughout the automaker’s supply chain and distribution networks.

Suppliers have been hard hit from the loss of business and have been warned that production might not restart until November.

A CEO at one unnamed supplier told the BBC that his company had laid off 40 people, nearly half of its workforce.

“Companies that are otherwise viable could end up going under, which would not only hollow out the supply chain but leave JLR in a difficult position to restart production,” said Professor Bailey.

Unions have called for the British government to offer emergency financial support to affected companies, the government meanwhile already fast-tracking tariff negotiations with the US.

JLR said it is working with all its suppliers.

“We recognise this has a significant impact on them,” a company spokesperson told ANE.

Other groups to be adversely affected include dealers and customers as, according to one source, JLR has lost track of about 40,000 cars built before the cyber-attack but are yet to reach customers.

JLR denied that it lost contact with its vehicles.

“We definitely know where all cars are in transit from factory to market” the JLR spokesperson said.

Dealers in the UK say they have been badly hit by the lack of cars to register in September, one of the two busiest sales months of the year.

“It will have a big impact on retailers globally,” said a senior executive at one dealer group.

JLR’s has been unable to ship parts, throttling the ability of after sales departments to carry out servicing or to prepare used cars for sale, the executive said.

Meanwhile Jaguar is in the throes of re-inventing itself via a new and widely criticised Exuberant Modernism marketing direction that saw the production end of all ICE-powered Jaguar models earlier this year.

Exuberant Modernism involves positioning the brand in the ultra-luxury segment, appealing to a younger, affluent, and design-focused audience by pivoting to an all-electric line-up and adopting a new visual identity of Exuberant Modernism to create “objects of desire”.

The strategy aims to blend innovation with heritage by leveraging celebrity endorsements, sponsoring luxury events, utilising traditional and digital advertising, and creating a distinct, premium brand experience that emphasises sustainability, technology, and unique design.

The plan has reputedly backfired with rusted-on Jaguar owners and has been heavily criticised as being far too parochial.