Cyber Attack Still Paralyzing JLR, British Government Steps In To Help Suppliers

Range Rover. (Photo: Land Rover Media)

JAKARTA The Jaguar Land Rover (JLR) has been facing a major crisis after a massive cyberattack since early September paralyzed its operations. This disruption forced the luxury car manufacturer owned by Tata Motors from India to extend the factory closure until October. JLR has three major factories in the UK that typically produce around 1,000 cars per day.

The impact of the cyberattack severely hit JLR's business. According to the BBC, which was continued by Reuters on Friday, September 26, the company is estimated to lose around 50 million (around Rp1.1 trillion) each week, while most of the 33,000 employees are forced to be laid off.

This condition also dragged component suppliers into critical situations. The parliamentary committee reported that many small suppliers only had cash reserves to last one week before running out of money. Larger suppliers are predicted to start difficulties in the next two weeks, with uncertainty over employee salary payments towards the end of October.

Mike Hawes, head of the UK's automotive trading agency SMMT, warned, "The impact of cyberattacks on supply chains and industries that depend on them is severe and the duration is unknown."

Government Prepares Support Scheme

Seeing the wider potential impact, the British government is moving fast. The Minister of State for Business and Trade, Peter Kyle, together with Industry Minister Chris McDonald, have visited JLR facilities to discuss production restart measures and supply chain rescue strategies.

"We have two priorities to help Jaguar Land Rover return to operation as soon as possible, and maintain long-term health supply chains," McDonald said.

According to government sources, some support options are being considered, including:

Component Purchase: The government can buy spare parts from suppliers to help cash flow until JLR returns to full production.

Loans Guaranteed by the Government: Another option is to provide loans with state guarantees, although this idea is said to be less attractive to some suppliers.

JLR Mulai Pulihkan Sistem dan Prioritas Pembayaran Dalam pernyataan resmi, JLR menyebut sebagian sistem penting, termasuk pasokan bagian global dan keuangan wholesale, sudah kembali online.

"We are working to complete payments to suppliers as quickly as possible," said a spokesman for JLR.

Tata Motors' financial official, P B Balaji, added that the company is committed to assisting its most vulnerable supplier partners and completing all payments pending in the coming weeks.

Now, the entire UK auto industry is waiting for a government decision regarding an aid scheme that will determine the fate of small suppliers in the midst of this crisis.