Cyber Attack on Jaguar Land Rover
The cyber attack on Jaguar Land Rover (JLR) halted production at its sites for almost six weeks, resulting in a significant financial loss. According to the company’s latest accounts, the "cyber-related costs" were approximately £196 million. This figure does not take into account the decline in sales that occurred as a result of the attack.
Financial Impact
The attack had a substantial impact on JLR’s profits, which fell sharply from £398 million to a loss of £485 million in the three months to the end of September. Sales also declined by nearly 25%, and the company warned that the effects of the production halt could linger, potentially slowing sales in the final three months of the year.
Impact on the UK Economy
The closure of JLR’s factories had a ripple effect on the automotive supply chain, contributing to a decline in UK economic growth in September. Official figures showed that if automobile production had not fallen by 28.6%, the UK economy would have grown by 0.1% for the month, instead of declining by 0.1%. JLR’s chief financial officer, Richard Molyneux, noted that the company’s impact on GDP decline was "interesting to hear" and confirmed that JLR is a crucial part of the UK economy.
Current Status
The company has reported that operations are "fairly back to normal" and facilities are "at or near capacity." Production of all luxury vehicles has resumed, and the attack is currently under investigation with law enforcement involvement in multiple jurisdictions.
Series of Attacks
JLR is not the only company to have been hit by cybercriminals in recent months. Other large companies, such as Marks and Spencer, the Co-Op, and Harrods, have also experienced service disruptions due to cyber attacks. Marks and Spencer estimated the cost of its IT outage at around £136 million, while four people were arrested in connection with the incidents. The frequency and severity of these attacks have raised concerns about a potential "epidemic" of cyberattacks.
