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

Jaguar Land Rover Suppliers 'Face Bankruptcy' Due to Hack Crisis LONDON (Reuters) - Jaguar Land Rover's (JLR) suppliers are facing a severe financial crisis due to the carmaker's two-week shutdown after a cyber attack, with some experts warning that up to 250,000 jobs could be at risk. The company's factories in Solihull, Halewood, and Wolverhampton have been idle since September 1, resulting in estimated losses of at least $65 million. However, the most significant damage is being done to JLR's network of suppliers, many of whom are small and medium-sized businesses. "This is a disaster for the UK automotive industry," 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." The cyber attack, which first came to light on September 1, forced JLR to shut down its computer systems worldwide. The company is still assessing the damage and has not yet given a timeline for when production will resume. JLR's suppliers are crucial to the UK economy, with many of them relying heavily on contracts from the carmaker. The government is facing calls for a furlough scheme to be set up to prevent widespread job losses. "This is a wake-up call for the industry," said a spokesperson for the Society of Motor Manufacturers and Traders (SMMT). "We urge the government to take immediate action to support affected businesses and workers." The global automotive industry has been hit by a series of cyber attacks in recent years, with major manufacturers such as Toyota and Honda also falling victim. However, the impact on JLR's suppliers is particularly severe due to the company's complex supply chain. JLR's shutdown has also had a ripple effect on other industries, including logistics and transportation companies that rely on the carmaker for business. The UK government has yet to comment on the situation, but industry experts are urging swift action to prevent job losses and support affected businesses. As JLR continues to assess the damage from the cyber attack, its suppliers remain in limbo, waiting for news on when production will resume. The company's future is uncertain, with many experts warning that the consequences of this crisis could be far-reaching. Background: Jaguar Land Rover is one of the UK's largest carmakers, employing over 40,000 people worldwide. Its suppliers are crucial to the UK economy, with many of them relying heavily on contracts from the company. Additional Perspectives: The cyber attack on JLR has raised concerns about the vulnerability of the global automotive industry to cyber threats. Industry experts are urging manufacturers to invest in cybersecurity measures to prevent similar attacks in the future. Current Status and Next Developments: JLR's factories remain idle, with production expected to resume by Wednesday at the earliest. The company is still assessing the damage from the cyber attack, but its suppliers are facing a severe financial crisis due to the shutdown. *Reporting by Bbc.*