The British government is exploring measures to bolster Jaguar Land Rover's supply chain following a devastating cyberattack that has halted production at the luxury carmaker's UK facilities.
Owned by India's Tata Motors, JLR suspended operations at its three British plants in Solihull, Wolverhampton, and Halewood after the incident, which emerged on September 1.
This disruption, now extended to at least October 1, has idled thousands of workers and strained smaller suppliers dependent on JLR's orders.
The attack has severed the company's IT networks, preventing the precise delivery of components essential to its just-in-time manufacturing model.
With daily output typically reaching 1,000 vehicles, the halt represents a significant economic blow to the West Midlands and Merseyside regions.
Directly employing around 30,000 people, JLR also supports roughly 100,000 jobs in its broader ecosystem, including firms that provide exclusive parts to the brand.
Smaller enterprises, lacking diversification, face acute risks of insolvency without swift intervention.
Broader ripple effects touch ancillary businesses, from local eateries to logistics providers serving the plants.
The incident, claimed by the group Scattered Lapsus$ Hunters, underscores a rising tide of cyber threats targeting UK entities, including the British Library and Marks & Spencer.
JLR's overseas sites in Slovakia, China, and India have similarly paused activities, amplifying global repercussions.
Estimated losses mount to at least £50 million weekly, compounded by unresolved cyber insurance coverage.
Ministers, including Business Secretary Peter Kyle and Industry Minister Chris McDonald, visited JLR's leadership on Tuesday to strategize recovery.
McDonald emphasized dual goals: accelerating JLR's restart and safeguarding supply chain vitality.
A government source revealed deliberations on financial lifelines, potentially marking the first state aid tied directly to a cyber breach.
One proposal involves the state procuring components from suppliers to sustain them through the downtime.
Yet, suppliers express reservations, citing the scheme's feasibility amid intricate logistics.
"To say we're disappointed is an understatement," remarked one anonymous supplier.
They criticized official grasp of the crisis's intricacies, urging tangible aid over assurances.
Government-backed loans represent another avenue, though met with tepid enthusiasm from affected parties.
Former West Midlands mayor Andy Street advocated for such loans on BBC Radio 4, lauding the chain's track record.
Unions pushed for a furlough program akin to Covid-era relief, but ministers dismissed it due to prohibitive expenses.
The National Cyber Security Centre and National Crime Agency are aiding JLR's probe, while the company prioritizes stakeholder support.
The Business and Trade Select Committee convened Thursday to gather supplier testimonies, insights to inform policy.
Tata Motors finance chief P B Balaji assured the panel of efforts to expedite payments to needy partners.
He noted JLR's leverage via Tata Group's banking ties for favorable credit, vowing swift resolutions.
JLR pledges to honor all dues in forthcoming weeks, empowered to align decisions with partner interests.
This episode highlights uncharted territory in cyber response, diverging from norms where insurers or firms absorb costs.
In contrast, U.S. authorities have reclaimed ransom funds through offensive cyber operations.
UK officials voice alarm over escalating attacks, with Co-op disclosing £206 million in revenues lost from its earlier breach.
JLR's statement reaffirms commitment to customers, suppliers, staff, and dealers, whose outlets persist operational.
As investigations progress, the government's role could redefine resilience against digital vulnerabilities in critical sectors.