Cybersecurity Risks in the Automotive Industry - The automotive industry is increasingly vulnerable to cyberattacks, with manufacturers ranking cyber risk as their top external concern [2][3] - A significant attack on CDK Global in June 2024 disrupted operations for over 15,000 dealerships, affecting sales and inventory management [2] - The industry faces severe consequences from cyber incidents, including production shutdowns, financial damage, and regulatory penalties [3] Recent Cyberattacks and Their Impact - The Jaguar Land Rover (JLR) cyberattack exemplified the potential for catastrophic impacts on supply chains and regional economies, affecting over 120,000 workers in the U.K. auto sector [11] - JLR reported $39 billion in annual revenue for fiscal 2025, with a notable 17% drop in retail sales and a 24% decline in wholesale volumes following the attack [12][16] - The attack on JLR has led to a negative outlook from Moody's, forecasting a 14% revenue decline for fiscal 2026 [22] Government and Regulatory Responses - The U.S. Department of Commerce has banned the sale of connected vehicles and related software from Russia and China due to cybersecurity concerns [7][8] - The U.K. National Cyber Security Centre reported a record number of significant cyberattacks, urging businesses to prioritize cyber resilience at the corporate leadership level [27][28] Recovery Efforts and Challenges - JLR has begun a phased restart of operations, but recovery from such attacks poses ongoing security risks due to prolonged access by hackers [20][21] - Vertu Motors, a key dealer for JLR, anticipates a $7.3 million impact on earnings due to the attack and plans to file an insurance claim [17][18] - Bridgestone Americas also faced production halts due to a cyberattack, impacting multiple facilities across North America [23][24]