UK Government Mulls Unprecedented Support for JLR Supply Chain Amid Prolonged Cyberattack Fallout

UK Government Mulls Unprecedented Support for JLR Supply Chain Amid Prolonged Cyberattack Fallout

UK Government Mulls Unprecedented Support for JLR Supply Chain Amid Prolonged Cyberattack Fallout

UK Government Mulls Unprecedented Support for JLR Supply Chain Amid Prolonged Cyberattack Fallout
Image from BBC

The UK government is actively considering extraordinary measures to safeguard Jaguar Land Rover’s vital supply chain, which faces collapse following a crippling cyberattack that has shut down JLR’s production lines since late August. With factories not expected to resume operations until at least October 1st, and potentially longer, fears are mounting that numerous smaller firms reliant on JLR could face bankruptcy without immediate intervention.

Ministers are exploring an unprecedented strategy: the government potentially buying and stockpiling component parts directly from suppliers. This move aims to keep these businesses solvent until JLR’s manufacturing can restart. Other options, including government-backed loans, are also on the table, though reportedly less popular with suppliers. If enacted, this would mark the first instance of government financial aid in response to a corporate cyberattack.

The disruption, which came to light on September 1st, is estimated to be costing JLR at least £50 million weekly in lost production. The carmaker, owned by India’s Tata Motors, typically builds around 1,000 vehicles daily across its UK plants, directly employing 30,000 people and supporting 100,000 jobs within its supply network.

As the Business and Trade Select Committee prepares to hear urgent testimony this week from affected businesses, senior government figures are increasingly alarmed by a pattern of sophisticated cyberattacks targeting major UK institutions and companies. JLR continues to receive support from the National Cyber Security Centre and the National Crime Agency as investigations into the incident, claimed by a group called Scattered Lapsus$ Hunters, continue.

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