Jaguar Land Rover cyber attack impacts three quarters of West Midlands firms

September’s cyber attack on Jaguar Land Rover (JLR) is continuing to negatively impact businesses in the region, though manufacturing work is set to resume soon.

On September 1, the three JLR UK facilities in the West Midlands and Merseyside were halted due to a cyber attack.

Because of this, over 75% of West Midlands businesses say they have been negatively affected.

84 businesses were consulted by the Greater Birmingham, Black Country, Coventry, and Warwickshire Chambers of Commerce, representing nearly 30,000 employees.

Of those consulted, 77% say the cyber attack has had a negative effect on their business, with 45% saying they felt a negative financial impact. 26% also say they have felt supply chain issues such as delays for goods and services due to the attack.

Work is being done by JLR to ensure that manufacturing will resume first at the engine facility in Wolverhampton [followed by a] ‘phased return’ which should see all production return in the coming weeks

This attack has not only damaged businesses in the region, but also has harmed many of the 30,000 people they employ. Businesses have taken measures such as reducing staff hours by 35% in order to counteract the damage caused.

Raj Kandola, acting deputy CEO of the Greater Birmingham Chamber of Commerce, told The Leamington Observer: “These businesses have made it clear they need immediate financial support to get their operations back on track as time is of the essence”.

Kandola also made it clear that the Chamber would be communicating with “key stakeholders regionally and nationally – including the West Midlands mayor, regional MPs and contacts in Westminster” to make sure that policy makers know the vast effects of September’s attack.

Work is being done by JLR to ensure that manufacturing will resume first at the engine facility in Wolverhampton in early October. There will be a “phased return” which should see all production return in the coming weeks.

The government has announced that it will provide loan guarantees worth £1.5 billion for JLR. Sources inside the company told the BBC that the money will be used to support suppliers that it has a direct relationship with, easing their cashflow and helping to pay for parts orders.

It remains to be seen whether the businesses affected will be able to cope with this continued delay. The timeline for a complete restart of production in all areas remains uncertain.