Jaguar Land Rover Cyber Attack Causes UK Car Production to Slump by a Quarter
The recent cyber attack on Jaguar Land Rover (JLR) has had a devastating impact on UK car production, leading to a staggering 27% drop in September. With no vehicles produced over the five-week shutdown, it marks the lowest output for any September since 1952, as reported by the Society of Motor Manufacturers and Traders (SMMT).
Impact on Overall Production
JLR’s factories, including those in Solihull, Wolverhampton, and Halewood, were forced to halt operations as the attack compromised critical IT systems. The fallout resulted in only 51,000 vehicles being manufactured last month, a dismal figure in comparison to previous years. Notably, other manufacturers reported stable production rates, emphasizing the severity of JLR’s situation. The SMMT estimates the financial toll of the attack at £1.9 billion, making it one of the most significant cyber events in UK history.
Broader Industry Consequences
In addition to JLR’s troubles, overall vehicle production across the UK plummeted by 35.9% year-on-year, totaling around 54,300 vehicles. Exports also took a hit, declining by 24.5%, with key markets including the EU, US, Turkey, Japan, and South Korea. This year, UK factories have produced 582,250 vehicles, a decrease of 15.2% compared to the same period in 2022.
SMMT Chief Executive, Mike Hawes, stated, September’s performance comes as no surprise given the total loss of production at Britain’s biggest automotive employer following a cyber incident. While the situation has improved, the sector remains under immense pressure.
Hope for Recovery
Ian Plummer, CEO of Autotrader, described the shutdown as a severe, but short-term issue, predicting a surge in demand akin to the post-COVID recovery. He noted that JLR brands recently garnered the highest number of monthly sales leads on their platform—indicating strong consumer interest despite current supply chain challenges.
The government’s ambition to boost domestic car production to 1.3 million vehicles annually is now in jeopardy. Concerns are mounting that ending tax breaks for Employee Car Ownership Schemes (ECOS) could hinder recovery efforts. Hawes emphasized the need for rapid interventions to enhance competitiveness, highlighting the importance of retaining ECOS schemes to provide immediate relief.
In conclusion, the JLR cyber attack has undeniably disrupted the UK automotive sector, leading to unprecedented production losses and financial implications. As the industry grapples with recovery challenges, the focus remains on restoring stability and fostering growth amidst a competitive landscape.