Jaguar Land Rover cyber attack more disruptive than M&S hack, say bosses

JLR directly employs almost 33,000 people in the UK and supports a further 104,000 jobs in the supply chain, ITV News Business and Economics Editor Joel Hill on the huge impact of the latest cyber hack to hit a business in Britain

Jaguar Land Rover (JLR) has told the government that the cyber attack it is battling is more disruptive and complex than the hacks that hit Marks & Spencer and the Co-op earlier this year, warning that some of its suppliers are unlikely to survive without taxpayer support.

The company switched off its IT systems two weeks ago after discovering it had been hacked and has not been able to restart them. Production has been halted at all of its factories in the UK and overseas, with no timeline for a restart.

The cyber attack on M&S forced the retailer to suspend online sales for six weeks and ended up costing the company £300 million. JLR has been speaking to M&S about how it managed the recovery.

Executives from JLR have been in daily contact with the Treasury and the Department for Business and Trade (DBT). Staff at the National Crime Agency and the National Cyber Security Centre are also assisting.

JLR, which is owned by Indian conglomerate Tata, has told ministers that it has the financial strength to withstand the shutdown, but some of its suppliers are running out of cash.

Executives are due to meet DBT officials in London on Tuesday to update them on the effect of the stoppage on the network of suppliers, discuss how much support may be needed and whether it should take the form of loans or grants.

Last week, MPs on the Business and Trade Committee wrote to the Chancellor, Rachel Reeves, urging her to prepare “emergency, Covid-style economic support mechanisms” to prevent suppliers going bust.

On Friday, Unite leader Sharon Graham called for the government to reintroduce a furlough scheme, warning that “thousands of jobs” are at risk.

JLR directly employs almost 33,000 people in the UK and supports a further 104,000 jobs in the supply chain, according to Oxford Economics.

During the pandemic, the company furloughed 20,000 staff and received more than £100m in government support.

“We are genuinely in a place where we are trying to establish the full picture,” a government source told me this evening.

In a statement on Monday, a spokesperson for Jaguar Land Rover said: “We are very sorry for the continued disruption the cyber incident at JLR is causing.

“Our investigation is ongoing and we are working around the clock, with third‑party cybersecurity specialists, to restart our global applications in a controlled and safe manner.”

ITV News has approached the Department for Business and Trade for Comment.