By Sarah Young LONDON (Reuters) -Britain's biggest car maker Jaguar Land Rover (JLR) is extending the closure of its factories until October 1 following a cyberattack in early September which has left its operations paralysed and smaller suppliers struggling. The luxury carmaker, owned by India's Tata Motors, has three factories in Britain which produce about 1,000 cars per day. The group is said to be losing tens of millions of pounds, with many of its 33,000 staff told to stay at home. British busi ...

Core Viewpoint - Jaguar Land Rover (JLR) is facing significant operational disruptions due to a cyberattack that has led to production halts and potential data breaches, impacting both the company and its supply chain partners [3][4][5]. Production Disruption - Since early September, JLR has experienced a complete halt in multiple production lines, with the shutdown expected to last at least until September 24, marking a potential three-week interruption [3][8]. - Approximately 33,000 employees have been asked to stay home, and it is estimated that around £1.7 billion worth of vehicles have not been produced during this period, leading to an initial profit loss of about £120 million [4][9]. Data Breach Concerns - Following the cyberattack, JLR has acknowledged that some data may have been compromised and is in the process of notifying regulatory bodies [7][12]. - The situation has escalated from a production halt to concerns over data loss, with JLR committing to inform affected individuals if personal data is confirmed to be impacted [7][12]. Supply Chain Impact - The production stoppage has caused a ripple effect in the supply chain, particularly affecting suppliers in Slovakia, where some have had to reduce production and adjust employee work hours and pay [4][15]. - The disruption has led to cash flow issues for smaller suppliers, with some initiating production cuts and employee furloughs to manage costs [17][18]. Future Outlook - Key observations for JLR moving forward include the feasibility of resuming production by September 24, the extent of data breach implications, and the timeline for supply chain recovery [18][19]. - The pace of controlled restart and clarity in data disclosure will be crucial for JLR to transition from crisis management to normal operations [19].

Core Viewpoint - Jaguar Land Rover (JLR) is facing a significant production shutdown due to a cyber attack, which may extend until November, potentially halting the production of nearly 50,000 cars and causing billions in lost sales [1][5]. Group 1: Production Impact - JLR's production lines have been paralyzed for two weeks, with a possibility of an additional seven-week shutdown [1][2]. - A credible restart date for production has been suggested as November, although this is not officially confirmed by the company [2][3]. - Even if the cyber issues are resolved immediately, it would take three to four weeks to ramp up production to near-normal levels [3]. Group 2: Financial Consequences - A prolonged shutdown could cost JLR billions in lost sales and put significant financial pressure on its suppliers, with some potentially facing bankruptcy without external support [5][6]. - The chaos from the shutdown may complicate the resumption of production and could also affect rival luxury brands that share suppliers with JLR [5]. Group 3: Industry Reactions - Industry insiders express concern over the situation, particularly for smaller suppliers reliant on JLR, with fears that some may go out of business [6][7]. - The ongoing disruption is acknowledged by JLR, which is working to resolve the crisis and restart operations in a controlled manner [4].

Financial Performance - Jaguar Land Rover reported a pre-tax profit of £2.5 billion for the fiscal year 2025, a 15% increase year-on-year, with revenue remaining stable at £29 billion [2] - The company's EBIT margin was 8.5%, while net profit decreased to £1.8 billion from £2.6 billion in the previous fiscal year [2] - Free cash flow stood at £1.5 billion, attributed to strong sales of high-value brands such as Range Rover and Defender, which increased their share of total wholesale sales from 61% to 68% [2] Market Challenges - The company is facing challenges due to the impact of new U.S. tariffs, prompting Tata Motors to reassess profit forecasts for Jaguar Land Rover [3] - A new trade agreement allows up to 100,000 British cars to enter the U.S. market at a 10% tariff, which is an improvement from the previous 25% but still higher than the pre-Trump rate of 2.5% [3] - The North American market, which saw a 14.4% increase in wholesale volume in Q4 of fiscal 2025, may experience a decline due to tariffs affecting the Defender model produced in Slovakia [4] Strategic Adjustments - Jaguar Land Rover is focusing on diversifying its market strategy to mitigate risks associated with U.S. tariffs, aiming to become a fully electric luxury car manufacturer by 2030 and achieve net-zero carbon emissions by 2039 [5] - The company plans to increase its investment from £15 billion to £18 billion over the next five years for electric product development [6] - A significant investment of £500 million will be allocated for the electrification upgrade of the Halewood plant in the UK, enhancing production efficiency [6] Collaboration and Market Expansion - Jaguar Land Rover has signed a strategic cooperation agreement with Chery to focus on electric vehicle production for the Chinese market, launching a new brand "Freelander" [7] - The partnership aims to leverage Chery's electric platform while phasing out production of certain existing models in China [7] - The company is also exploring growth opportunities in other regions, particularly in light of favorable trade agreements with India that significantly reduce import tariffs on British vehicles [5]