Jaguar Land Rover faces £2bn bill after cyber attack leaves it uninsured

Jaguar Land Rover will shoulder about £2 billion in losses from a cyber attack that shut down production and left thousands of suppliers exposed, it was claimed last night. Britain's biggest carmaker, which is owned by Tata Motors of India, had not completed cyber-insurance coverage when hackers breached its computer systems at the end of August, forcing a pause in manufacturing at its UK and Merseyside plants. The disruption has already cost an estimated £2 billion in lost revenue, with roughly 1,000 vehicles a day normally rolling off the lines in the West Midlands and Merseyside. JLR extended the pause in production into next month, and officials warned the shutdown could stretch into November, shaving as much as £3.5 billion from revenue and £250 million from projected profit. A spokesman for JLR said the company does not comment on commercial matters.

The cyber attack prompted industry trade publication The Insurer to report that JLR had not secured cyber insurance and was in talks with insurance broker Lockton, though nothing had been finalised when the breach occurred. By contrast, Marks and Spencer did have cyber insurance cover before it was targeted earlier this year. The crisis has raised fears for the health of JLR’s supplier base as smaller firms face cancellations, layoffs and potential insolvency if orders do not recover quickly.

Ministers are under mounting pressure to act, with MPs and unions calling for a furlough scheme to protect workers affected by the shutdown. Business Secretary Peter Kyle rejected such calls but was reported to be considering a plan in which the government would buy parts directly from JLR suppliers to prevent collapses, then sell the parts to JLR when production resumes. Kyle met JLR bosses and firms in the supply chain this week to explore options. A JLR spokesman said the company remains focused on supporting customers, suppliers, colleagues and retailers who stay open and thanked everyone for their continued patience.

Labour’s Liam Byrne, a local MP and chairman of the Commons business and trade committee, described the situation as a test for the government and warned that delays in resolving the supplier crisis could have lasting effects on Britain’s manufacturing backbone. The sense of urgency is sharpened by the scale of the disruption: roughly 1,000 vehicles are produced daily in JLR’s UK factories, and the shutdown threatens billions in revenue and a substantial hit to profits if prolonged.

JLR, one of the country’s most prominent manufacturers, is part of Tata Motors and has long been a bellwether for Britain’s auto sector. The current crisis underscores broader concerns about cyber risk, the availability of insurance coverage for large manufacturers, and the government’s willingness to intervene to protect jobs and supply chains during digital-age disruptions. While the immediate priority is restoring production and stabilising supplier payments, industry observers say the longer-term implications could extend to pricing, investment decisions and the negotiating leverage of suppliers who rely on JLR’s orders. The timeline remains unclear, but industry officials say the company is pursuing all options to resume production as quickly as possible while safeguarding its partners and employees.