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 began on September 1, when a sophisticated hack forced the British carmaker to shut down its computer systems and close production lines globally. JLR's factories in Solihull, Halewood, and Wolverhampton remain idle until at least Wednesday as the company assesses the damage. According to industry experts, the stoppage has already cost JLR at least $65 million (50 million pounds) in lost revenue. However, the most significant concern is the impact on its network of suppliers, many of whom are small and medium-sized businesses. "This is a perfect storm for our suppliers," said David Bailey, professor of business economics at Aston University. "There's anywhere up to a quarter of a million people in the supply chain for Jaguar Land Rover. If there's a knock-on effect from this closure, we could see companies going under and jobs being lost." The UK government is now facing calls to establish a furlough scheme to mitigate the effects on employment. The crisis has also sparked concerns about the vulnerability of global supply chains to cyber threats. Jaguar Land Rover's reliance on suppliers is not unique in the automotive industry. Many carmakers, including General Motors and Volkswagen, have faced similar challenges in recent years. However, the scale and complexity of JLR's supply chain make it particularly vulnerable to disruptions. The hack has also raised questions about the preparedness of companies to respond to cyber threats. "This is a wake-up call for all businesses," said Mark Brown, managing director of cybersecurity firm, CQR Consulting. "Companies need to be proactive in their approach to cybersecurity and have robust incident response plans in place." As JLR continues to assess the damage, its suppliers are holding their breath, waiting to see if they will be able to recover from the losses incurred during the stoppage. The global automotive industry is watching closely, aware that the consequences of this crisis could be far-reaching. The UK government has yet to comment on the proposed furlough scheme, but industry insiders expect a decision soon. In the meantime, JLR's suppliers are bracing themselves for what promises to be a long and difficult road ahead. (Reporting by Theo Leggett; Editing by Kate Holton) *Reporting by Bbc.*