Jaguar Land Rover (JLR) continues to endure the fallout from a recent widespread cyberattack, announcing that its manufacturing operations will be halted for at least another week.
The details: JLR confirmed that it has informed colleagues, suppliers, and partners of an extended pause in global operations until Wednesday, Sept. 24.
The pause will mark the third week that the U.K.-based company has had to stop production as a result of the cyberattack on its production line and sales operations.
But some insider sources claim the disruption could last until November.
JLR said it will continue its “forensic investigation” of the cyber incident as the company works through the dynamics to “restart” its global operations.
The company, which disclosed the incident on Sept. 2, has said that “some data” was stolen during the cyberattack.
Why it matters: The prolonged shutdown highlights how operationally devastating cyberattacks can be for car manufacturers with sophisticated IT systems, global supply chains, production lines, and sales funnels.
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Between the lines: Estimates on the overall financial impact of the production pause on JLR’s operations vary as the tally continues to mount, prompting concerns that the shutdown could lead to bankruptcy.
The shutdown is halting the production of an estimated 1,000 vehicles per week, costing JLR about £50 million (roughly $68 million), according to BBC.
What they’re saying: “The value of cars usually made at the sites means that around £1.7 billion (about $2.3 billion) worth of vehicles will not have been produced, and I’d estimate that would have an initial impact of around £120 million (roughly $163 million) on profits,” said David Bailey, professor of business economics at the Birmingham Business School (via the Independent).
Bottom line: Manufacturing is becoming a hotbed for organized cybercrime and automakers are in the crosshairs.
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