Jaguar Land Rover Suppliers on Brink of Collapse Amid Prolonged Hack Crisis

Jaguar Land Rover Suppliers Face Bankruptcy Amid Hack Crisis LONDON (Reuters) - Jaguar Land Rover's (JLR) suppliers are facing financial ruin due to the prolonged shutdown of the carmaker's computer systems, with some experts warning that up to a quarter of a million jobs could be at risk. The crisis began on September 1, when JLR was forced to shut down its production lines worldwide after falling victim to a cyber attack. The company's factories in Solihull, Halewood, and Wolverhampton remain idle, with no clear timeline for reopening. According to estimates, JLR has already lost at least $65 million due to the stoppage. However, it is the smaller suppliers that are facing the most severe consequences. "These companies are often family-owned, with thin profit margins," said David Bailey, professor of business economics at Birmingham Business School. "If they can't get back up and running quickly, they face bankruptcy." The UK government is under pressure to introduce a furlough scheme to prevent widespread job losses among JLR's suppliers. The company has a vast network of over 1,000 suppliers across the globe, with many based in the UK. JLR's reliance on its global supply chain makes it vulnerable to disruptions. "The automotive industry is highly complex and interconnected," said Bailey. "A single disruption can have far-reaching consequences." The cyber attack is believed to be one of the most significant disruptions to JLR's operations in recent years. The company has not commented publicly on the extent of the damage or the number of suppliers affected. As the crisis continues, attention is turning to the global implications of a prolonged shutdown. "This is not just a UK problem," said Bailey. "The automotive industry is a global industry, and any disruption can have far-reaching consequences." JLR's suppliers are expected to remain idle until at least Wednesday, as the company continues to assess the damage. The UK government has yet to announce any plans for a furlough scheme. Background: Jaguar Land Rover is one of the largest carmakers in the world, with a global presence and a reputation for producing high-quality vehicles. However, its reliance on complex supply chains makes it vulnerable to disruptions. The automotive industry is highly competitive, with manufacturers constantly seeking to reduce costs and improve efficiency. JLR's suppliers are often small and medium-sized businesses, which can be particularly vulnerable to financial shocks. Additional Perspectives: Industry experts warn that the crisis could have far-reaching consequences for the global automotive industry. "This is a wake-up call for companies to invest in cybersecurity," said one expert. The UK government has yet to comment on the situation, but sources close to the matter suggest that a furlough scheme may be introduced soon. Current Status: JLR's suppliers remain idle, with no clear timeline for reopening. The company continues to assess the damage and work towards resolving the crisis. As the situation unfolds, attention will focus on the global implications of a prolonged shutdown and the potential consequences for JLR's suppliers. *Reporting by Bbc.*