Jaguar Land Rover pauses operations after cyberattack; UK government backs £1.5 bn loan guarantee

 

Jaguar Land Rover pauses operations after cyberattack; UK government backs £1.5 bn loan guarantee

Jaguar Land Rover (JLR), Britain’s largest carmaker, was forced to temporarily suspend operations this month following a major cyberattack that disrupted its IT systems. The attack, which targeted the company’s production and logistics networks, left factories unable to operate normally for several days. Thousands of workers were sent home as JLR scrambled to restore critical systems and secure its digital infrastructure

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The disruption came at a time when the automotive industry is already under pressure from rising costs, supply chain instability, and the global transition toward electric vehicles. For JLR, the timing was particularly difficult, as the company had been preparing to ramp up production of new electric models. Analysts warn that the incident could delay the rollout of key vehicles and dent consumer confidence in the short term.

In response, the UK government stepped in to support the company, announcing a £1.5 billion loan guarantee to stabilize operations and reassure creditors. While some welcomed the intervention as necessary to protect jobs and supply chains, critics raised concerns about the precedent of taxpayer-backed bailouts for private firms. Questions have also been raised about the company’s cyber defenses and whether it invested adequately in protecting its systems from sophisticated threats.

Cybersecurity experts say the attack is part of a growing trend of cybercrime targeting major industrial players. With factories increasingly reliant on digital systems, the risks of disruption have multiplied. Companies are now being urged to treat cybersecurity not as an IT issue but as a core business priority, on par with safety and financial management.

For JLR, the road ahead will involve both technical recovery and reputational rebuilding. The company insists that no customer data was compromised, but the incident has exposed vulnerabilities that will take time to fully address. How quickly JLR can regain momentum in its electrification strategy may determine whether this crisis becomes a temporary setback or a lasting obstacle.