Jaguar Land Rover Cyber Attack Costs £196m and Impacts UK Economy
Jaguar Land Rover (JLR) has reported cyber-related costs amounting to £196 million (around £200 million) in its latest accounts, excluding losses from reduced sales. The cyber attack caused a production halt at JLR's manufacturing sites lasting nearly six weeks, although operations have largely resumed with plants now at or near full capacity.
This disruption severely impacted the company's profitability, with quarterly profits deteriorating from £398 million to a £485 million loss, and revenues declining by approximately 25% in the three months ending September 30. The UK economy also reflected these challenges, as GDP contracted by 0.1% in September, largely driven by a 28.6% decline in car output; without the fall in car production, GDP would have grown by 0.1%.
JLR's Chief Financial Officer, Richard Molyneux, emphasized that the financial impact highlights the company's role as the UK’s largest exporter and its historical contributions to the economy. Investigations into the cyber attack are ongoing across multiple jurisdictions with law enforcement agencies, though details about the cause remain undisclosed due to the live nature of the inquiry. Four individuals have been arrested in connection with this and related incidents.
The cyber incident at JLR was contemporaneous with other significant cyber attacks affecting major UK firms, including a £136 million IT outage at Marks & Spencer, as well as disruptions at Co-Op and Harrods.
