Jaguar Land Rover Faces Heavy Losses as Cyberattack Hits UK Economy and Industry

Jaguar Land Rover, the largest car manufacturer in the United Kingdom, has revealed the scale of damage inflicted by a recent cyberattack, reporting substantial losses for the second quarter. The attack forced the shutdown of key computer systems and the suspension of production in September, with repercussions felt throughout the UK automotive sector. This disruption has been cited as a principal factor in the contraction of the national economy during the period.

In the company’s first financial results since the incident, revenue for the second quarter dropped to £4.9 billion, representing a 24 percent decline year on year. The volume of UK-built cars fell by 27 percent compared with the previous year, with output down almost 29 percent in September alone. Had normal production levels been maintained, the UK economy would have achieved slight growth, but instead registered a 0.1 percent contraction for the month.

Jaguar Land Rover reported a pre-tax loss of £485 million for the quarter, reversing a profit of £398 million recorded the previous year. The company incurred a one-off charge of £196 million attributable directly to the cyberattack, in addition to adjusting financial guidance for the year ahead. Key manufacturing plants in Solihull, Halewood, Wolverhampton and Castle Bromwich were forced to halt activity during the peak registration season.

The company’s Chief Executive, Adrian Mardell, who is set to step down after 35 years, stated that the immediate impact of the attack has largely subsided, with factories resuming operations and nearing full capacity. The company did not disclose details of the ongoing investigation but confirmed collaboration with the National Cyber Security Centre and international law enforcement. Mardell described the events as a significant learning experience that required maintaining clear priorities and restructuring recovery efforts, enabling production to resume within six weeks of the shutdowns.

During the recovery phase, Jaguar Land Rover secured a £2 billion bank loan and a £1.5 billion government-backed loan facility. Of these, only £500 million from the bank loan has been utilised to date. To support suppliers and maintain cash flow, the firm introduced a £500 million supply chain finance scheme as operations gradually resumed.

A coalition of hacking groups, including Scattered Spider, Lapsus$ and ShinyHunters, claimed responsibility for the breach. The company’s challenges have been exacerbated by a dispute over Chinese-manufactured semiconductors vital for European production. Although recent export restrictions have now been eased, Chief Financial Officer Richard Molyneux indicated the company is closely monitoring the situation as further disruptions could occur due to the complex supply chain.

Market conditions for Jaguar Land Rover remain challenging. The company faces reduced sales in China following changes to luxury vehicle taxation, while the European Union economy also shows signs of vulnerability. In the United States, JLR has been affected by a 25 percent import tariff on British-manufactured vehicles, partially alleviated by a new agreement capping a lower 10 percent tariff for the first 100,000 vehicles annually. This series of external shocks, combined with model transition challenges and production disruption, has compounded margin pressure on the business.