Jaguar Land Rover Cyber Attack Costs and UK Economic Impact Revealed
Jaguar Land Rover (JLR) incurred direct cyber-related costs totaling £196 million due to a cyber attack that disrupted its operations. The cyber attack caused a nearly six-week pause in production at JLR sites, resulting in a significant economic impact. As a consequence, JLR's profits shifted from a £398 million profit to a £485 million loss in the three months ending in September, with revenues dropping by about 25%. The production halt also contributed to a 28.6% fall in car output in the UK during September, which negatively impacted the country's GDP. Without this disruption, UK GDP would have grown by 0.1%.
JLR operations have largely returned to normal, with plants running at or near full capacity and production of all luxury vehicles resuming. Investigations remain ongoing with law enforcement agencies across multiple jurisdictions, though the cause of the hack has not been disclosed due to the active investigation. Four individuals have been arrested in connection with the incident.
The company's Chief Financial Officer noted that the impact of the attack highlights JLR's importance as the UK's largest exporter of goods. Other major UK retailers such as Marks & Spencer, Co-Op, and Harrods also faced disruptions due to cyber attacks, with Marks & Spencer experiencing an IT outage estimated to cost around £136 million.
