Jaguar Land Rover Cyberattack Incurs £2 Billion for Tata Motors
The government may begin purchasing components from Jaguar Land Rover's suppliers in an effort to safeguard manufacturing jobs against the effects of a significant cyber-attack, while it investigates ways to assist businesses supplying the affected automaker.
Business secretary, Peter Kyle, is evaluating a strategy that would have the government purchase components from suppliers and subsequently sell them back to JLR once it restarts its vehicle production, as reported by ITV News. It is one of several alternatives being evaluated.
JLR, owned by Tata Motors from India, suffered a cyber-attack on 31 August, compelling it to halt production in a shutdown anticipated to extend into October.
The closure has resulted in Britain’s largest car manufacturer being unable to operate in any of its plants in the UK, Slovakia, Brazil, and India for weeks, leading to losses of hundreds of millions of pounds for itself and its suppliers.
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Unions have advocated for a furlough program for employees impacted by the closure. Although it is recognized that ministers are exploring different methods for the government to offer support, they have yet to officially pledge any financial assistance to help smaller suppliers endure.
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Purchasing components is reported to be one of multiple alternatives being evaluated. However, it would be challenging from a technical standpoint, as the manufacturer lacks considerable spare storage space to accommodate additional parts, which are delivered in large quantities.
Such a plan would also rely on the notion that JLR has not experienced a lasting decline in sales because of the shutdown. ITV News stated that the extent of any government acquisition could be "extremely substantial."
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Earlier this week, both Kyle and the industry minister Chris McDonald spoke with employees from JLR and its suppliers.