Jaguar Land Rover Resumes Production Following Month-Long Cyberattack, Backed by £1.5 Billion Government Loan Guarantee

Production Resumes After Extensive Disruption

Jaguar Land Rover (JLR) has commenced a phased restart of its manufacturing operations, beginning with its Wolverhampton engine facility on October 6, 2025. This marks a critical step in the luxury carmaker's recovery following a debilitating cyberattack that brought its global production to a standstill for over a month. The attack, which began on August 31, 2025, forced JLR to shut down its IT systems and halt production across its facilities in the UK, China, Slovakia, India, and Brazil.

Cyberattack's Far-Reaching Impact and Financial Toll

The sophisticated cyberattack, attributed to the 'Scattered Lapsus$ Hunters' group, linked to 'Scattered Spider' cybercriminals, caused severe disruptions to JLR's internal systems and led to the shutdown of production lines. Prior to the incident, JLR was producing approximately 1,000 cars per day, with 700 of those in the UK. Industry experts estimate the carmaker incurred losses ranging from £50 million to £500 million per week, with some analysts suggesting daily losses of up to £7.1 million. The attack also resulted in a confirmed data breach, though the specific information compromised has not been fully disclosed.

The disruption extended significantly to JLR's vast supply chain, impacting an estimated 120,000 to 200,000 people across its network. Many small and medium-sized enterprises (SMEs) reliant on JLR faced acute cash flow pressures, with some forced to temporarily lay off staff. Reports also indicated that JLR did not hold active cyber insurance coverage at the time of the attack, meaning it must bear the full financial burden.

Government Intervention and Recovery Efforts

In response to the crisis, the UK government announced a £1.5 billion loan guarantee on September 28/29, 2025, to support JLR and its supply chain. This unprecedented intervention, the first of its kind for a UK company directly impacted by a cyberattack, aims to 'give certainty to its supply chain' and bolster JLR's cash reserves. The loan, provided by commercial banks and backed by the Export Development Guarantee (EDG) from UK Export Finance, is to be repaid over five years. Business Secretary Peter Kyle emphasized that the guarantee would 'help support the supply chain and protect skilled jobs' across the West Midlands, Merseyside, and throughout the UK.

JLR, owned by India's Tata Group, directly employs 34,000 people in the UK and represents a significant portion of the nation's exports and GDP. While the Wolverhampton engine plant leads the restart, other UK plants in Solihull and Halewood are expected to resume operations in a phased manner over the coming weeks, with a full return to capacity anticipated to take several weeks. The incident has underscored the vulnerabilities of modern manufacturing's just-in-time supply networks and digital infrastructures.