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

Jaguar Land Rover is facing a potential £2 billion hit after a cyber attack shut down production at its plants, with the carmaker not insured against such a breach, industry reports said late Thursday. Britain’s biggest carmaker was still finalising cyber cover when hackers infiltrated its computer systems at the end of August, forcing pauses in manufacturing across its factories.

The disruption has already driven an estimated nearly £2 billion in lost revenue, with about 1,000 vehicles a day typically rolling off JLR’s lines in the West Midlands and Merseyside. The shutdown has extended production into the next month, and executives warned the hiatus could last into November, potentially stripping the group of around £3.5 billion in revenue and about £250 million of profit. The company, part of Tata Motors, has not disclosed any insurance against a cyber event, a point that could compound the financial sting of the crisis.

A spokesman for JLR said the company does not comment on commercial matters, and media reports said the cover was under discussion with insurer Lockton but had not been finalised when the attack occurred. By contrast, Marks & Spencer was reported to have cyber insurance in place before it was targeted earlier in the year, highlighting a growing disparity across British industry in risk transfer against digital threats.

The cyber crisis has raised alarms about the vulnerability of the supply chain. JLR’s suppliers could face financial distress as the pause drags on, prompting concerns about job losses and wider factory closures across the sector. Ministers have faced mounting pressure—from MPs and unions—to act, including calls for a furlough-style subsidy for workers affected by the shutdown. While the government has rejected direct wage subsidies, officials have reportedly considered using taxpayer funds to buy parts directly from JLR’s suppliers to prevent their collapse, with the plan to resell the components to JLR when production resumes.

Prime Minister’s office and business secretary discussions intensified after JLR executives, alongside several tier-one suppliers, met earlier this week to discuss relief options. A government spokesman indicated the priority remains stabilising the situation for customers, suppliers, employees, and retailers linked to the JLR network, and thanked partners for their continued support and patience during the disruption. The government’s approach would aim to maintain pipeline capacity and prevent cascading failures through the supply chain rather than provide a blanket subsidy to the company.

Labour figures have framed the situation as a test for government policy. Liam Byrne, a local MP and chair of the Commons business and trade committee, suggested the crisis at JLR underscores the need for clear government frameworks to support critical manufacturing supply chains in the event of cyber disruptions. Industry analysts say the scale of JLR’s exposure could test both risk management practices within large manufacturers and the speed with which policymakers respond to protect jobs and regional economies.

Industry observers note that the cyber attack began in late August and disrupted operations at multiple JLR sites, forcing a halt to assembly lines and delaying supplier payments. Journalistic reports have indicated that JLR is actively attempting to clear backlogs and resume production as quickly as possible, a process that could be hindered if the insurer does not step in to cover losses or if government interventions are slowed by policy debates and budget constraints.

The unfolding situation reflects broader concerns about cyber risk in manufacturing. For JLR, the uninsured exposure compounds the financial pain from a stoppage that has extended beyond the initial days of disruption, challenging the company to manage both ongoing cash flow and long-term supplier relationships as it navigates the road back to full operation.