Jaguar Land Rover Suppliers on Brink of Collapse Amid Cyber Attack Chaos

Jaguar Land Rover Suppliers Face Bankruptcy Threat Amid Cyber Attack Crisis LONDON (Reuters) - Jaguar Land Rover's (JLR) two-week cyber attack has left its suppliers on the brink of bankruptcy, with experts warning that up to a quarter of a million jobs could be at risk. The crisis began on September 1 when JLR shut down its computer systems and production lines worldwide due to a cyber attack. The company's factories in Solihull, Halewood, and Wolverhampton remain idle, with no clear timeline for resumption. According to estimates, JLR has lost at least $65 million so far as a result of the stoppage. However, it is the small and medium-sized suppliers that are facing the most severe consequences, with many on the verge of collapse. "This is a disaster for the supply chain," said David Bailey, professor of business economics at Birmingham Business School. "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." JLR's suppliers are scattered across the globe, with many based in the UK, Europe, and Asia. The company relies on these suppliers to provide critical components, including engines, transmissions, and electronics. The cyber attack has exposed vulnerabilities in JLR's global supply chain, highlighting the risks of relying on complex networks of suppliers. "This is a wake-up call for companies like Jaguar Land Rover," said Bailey. "They need to rethink their supply chain management and invest in more robust cybersecurity measures." As the crisis deepens, the UK government is facing calls to establish a furlough scheme to support affected workers. The move would provide financial assistance to suppliers struggling to stay afloat. JLR's parent company, Tata Motors, has yet to comment on the situation. However, industry insiders believe that the company will need to take drastic measures to mitigate the damage and prevent widespread job losses. The crisis serves as a stark reminder of the interconnectedness of global supply chains and the risks of cyber attacks. As companies continue to rely on complex networks of suppliers, they must prioritize cybersecurity and invest in robust measures to protect against future threats. In the meantime, JLR's suppliers remain on high alert, waiting for news from the company on when production will resume. The fate of up to a quarter of a million jobs hangs in the balance, as the world watches with bated breath. (Reuters) - Reporting by Theo Leggett; Editing by Peter Millership *Reporting by Bbc.*