News - General News - CorporateUPDATE: JLR to phase in production after hackBritish Government guarantee helps Jaguar Land Rover in recovery process2 Oct 2025 By HAITHAM RAZAGUI and PETER BARNWELL UPDATE: This story was updated on Thursday 2 October.
Following a cyberattack last month, Jaguar Land Rover (JLR) has said it will resume phased manufacturing operations in the coming days after financial support in the form of a £1.5 billion ($A3.0 billion) loan guarantee to secure funding was promised by the British Government.
The new funding will initially be aimed at supporting JLR’s supply chain crippled in the wake of the production shutdown precipitated by the hack.
Following the loan guarantee announcement, shares in JLR’s owner, Tata Motors – which is part of Indian conglomerate Tata Group – rose by nearly 2.0 per cent. But it is not known if Tata Motors has contributed to JLR’s cyberattack financial support.
Before the attack JLR had outsourced a large portion of its IT and cybersecurity to Tata IT arm, Tata Consultancy Services (TCS).
TCS run many of JLR’s key computer systems and according to some sources were the point of intrusion for the breach.
Ironically, now TCS is a major part of the response with its employees working to address the intrusion that crippled JLR’s production.
JLR has informed suppliers that some systems were back online including those that control the global supply of parts and the financial system that manages wholesale vehicle sales.
It also said its capacity to process invoices had increased.
The iconic British manufacturer had already struggled in 2025 under the weight of US tariffs and other issues that according to publication Automotive News Europe resulted in ratings agency Moody’s affirming the automaker’s Ba1 corporate family rating but revised its outlook to negative from positive.
“The Ba1 rating reflects that it will likely withstand the impact of the cyber incident,” said Moody assistant vice president and analyst Sweta Patodia.
“The outlook-change to negative from positive reflects our view that a full recovery in credit metrics will likely take several months.”
Automotive News Europe reported the breach was the latest in a string of cyber and ransomware attacks targeting companies around the world.
In Britain, household names including Marks & Spencer and the Co-op Group have fallen victim to increasingly sophisticated breaches.
Experts in the field, however, say more can be done to stop cyberattacks before they happen.
“I believe that every cybersecurity attack could be detected by putting the right monitoring tools in place,” said Upstream Security chief executive officer Yoav Levy
“It is preventable. It’s a matter of resources and investment.”
While he was speaking in general terms and not specifically about the situation at JLR, Mr Levy said that specialists in his field have detected and mitigated “far more complex attacks than this one”.
“Cybersecurity is like a cat and mouse game that needs to be an ongoing investment because a single cybersecurity incident creates billions of dollars in impact,” he concluded.
The original story continues below: THE British government has offered Jaguar Land Rover (JLR) a £1.5 billion ($A3.06b) guarantee so it can secure the financing necessary to weather mounting losses caused by a cyberattack that began late last month, forcing the car-maker to halt production and endangering numerous smaller businesses in its supply chain.
Hackers have compounded several challenges JLR was already navigating, including US tariffs – causing it to pause shipments, contributing to an 11.0 per cent drop in quarterly sales and a halving of its profit margin expectations – along with slumping Chinese demand and a self-imposed hiatus for the Jaguar brand.
A week ago, JLR’s loss of profit from the cyberattack alone stood at £70.0 million ($A143.0 million) and a revenue drop of more than £1.0 billion (about $A2.04b). The hit is expected to have doubled by the time the company is back on its feet, with JLR now saying that in “coming days” it will resume “some sections of our manufacturing operations”.
However, widespread financial fallout continues as JLR furloughed many of the 34,000 workers across its Solihull, Wolverhampton, Castle Bromwich, and Halewood production plants in the UK, with around 120,000 people employed in the supply of components also variously impacted.
Suppliers have reportedly been warned that full production might not restart until November.
GoAuto understands that separate arrangements are being made to shore up smaller companies that are reliant on the cashflow related to their continuous supply of components to JLR, potentially impacting their ability to serve other car-making operations around the UK such as Nissan, Toyota, Mini, Aston Martin, and Bentley.
Should any of these companies fail, it would create gaps in JLR’s supply chain that would further delay a restart of production.
The hack also reportedly caused JLR to lose track of vehicles it had already built for customers, disrupted the shipment of parts – meaning dealerships cannot service and repair customer cars –and halted or slowed production at JLR plants in Slovakia, China, and India.
JLR was already in the throes of a turnaround plan, announcing in July that it would cut 500 management jobs to “align its leadership workforce for the business’s current and future needs”.
Automotive News Europe reports that the JLR shutdown has had a ripple effect throughout the auto-maker’s supply chain and distribution networks, while the CEO of an unnamed supplier told the BBC that his company had laid off 40 people, nearly half of its workforce. ![]() Read more23rd of September 2025 ![]() Cyberattack hits Jaguar Land RoverPerfect storm, cyberattack hits bottom line of iconic British automaker, Jaguar Land Rover22nd of July 2025 ![]() Jaguar Land Rover delays EV roll-outFully electric new-generation vehicle line-up postponed as EV demand tapers: report16th of June 2025 ![]() Jaguar farewells ICE with swansong V8 F-PaceNine decades of internal combustion Jaguars farewelled with final V8 F-Pace SVR 5752nd of June 2025 ![]() Market Insight: JLR’s sales stallJaguar sales grind to halt as reinvention looms, Land Rover deliveries trending down |
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