JLR could take a £120 million hit as factory shutdown extended

Jaguar Land Rover (JLR) could take a £120 million hit as the factory shutdown has been extended, amid the cyber-attack.

On Tuesday JLR said that the shutdown will be extended until at least Wednesday 24 September, suppliers have been warned the disruption would extend into November.

The cyber-attack affected JLR’s global operations and the UK business was forced to shut down and workers have been told not to return back to work as the production lines are affected.

“We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time,” a JLR spokesman said.

“We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses.”

David Bailey, professor of business economics at the Birmingham Business School, told the PA news agency said, “The value of cars usually made at the sites means that around £1.7 billion worth of vehicles will not have been produced, and I’d estimate that would have an initial impact of around £120 million on profits.

“Some of that might be recovered when production restarts but the longer this goes on, the more of a concern this will be.

“If reports are right that this could last until November, then that could mean around 50,000 cars not being produced.”