Cyber Attack Threatens to Wipe Out Jaguar Land Rover Suppliers Worldwide

Jaguar Land Rover Suppliers 'Face Bankruptcy' Due to Hack Crisis LONDON (Reuters) - The global automotive industry is bracing for a potential economic shockwave as Jaguar Land Rover's suppliers face the threat of bankruptcy due to a cyber attack that has crippled production worldwide. The crisis, which began on September 1, has already forced the British carmaker to shut down its computer systems and close production lines globally. Factories in Solihull, Halewood, and Wolverhampton are expected to remain idle until at least Wednesday as the company assesses the damage. According to estimates, Jaguar Land Rover has lost at least $65 million so far due to the stoppage. However, experts warn that the most significant impact is being felt by its network of suppliers, many of whom are small and medium-sized businesses. "We're talking about anywhere up to a quarter of a million people in the supply chain for Jaguar Land Rover," said David Bailey, professor of business economics at Aston University. "If there's a knock-on effect from this closure, we could see companies going under and jobs being lost." The UK government is facing calls for a furlough scheme to be set up to prevent widespread job losses among suppliers. The crisis has also raised concerns about the resilience of global supply chains in the face of cyber threats. Jaguar Land Rover's reliance on just-in-time production, which requires suppliers to deliver components at short notice, makes it particularly vulnerable to disruptions. The company's suppliers are scattered across Europe and Asia, with many operating on thin margins. "The automotive industry is highly interconnected, and a disruption in one part of the chain can have far-reaching consequences," said a spokesperson for the European Automobile Manufacturers Association (ACEA). "We're working closely with our members to mitigate the impact of this crisis." The cyber attack is believed to have originated from outside Europe, although the exact source remains unclear. Jaguar Land Rover has declined to comment on the specifics of the incident. As the company struggles to recover from the crisis, its suppliers are bracing for a potentially devastating economic blow. The UK government's response will be closely watched as it seeks to mitigate the impact of the hack and prevent widespread job losses. The current status of Jaguar Land Rover's production lines remains uncertain, with the company expected to provide an update on Wednesday. In the meantime, its suppliers are holding their breath as they wait for news on when production can resume. (Reporting by Theo Leggett; Editing by Andrew Roche) *Reporting by Bbc.*