- The automaker is thought to be losing more than $10 million per day when its plants sit idle.
- Unnamed sources have suggested the production disruption could last into November.
- Industry experts have expressed concern that small and medium-sized suppliers could go bankrupt.
Jaguar Land Rover is facing a number of hurdles right now. It’s been more than three weeks since a teenage hacking group attacked the British automaker, crippling its systems and preventing it from restarting production. The company has now confirmed that production at all of its facilities will remain suspended until October 1 at the earliest.
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Ordinarily, Jaguar Land Rover builds more than 1,000 vehicles a day, but its factories, including the Solihull, Halewood, and Wolverhampton sites in the UK, have not been able to build a single vehicle since the August 31 cyberattack. There are some fears that the extended shutdown could force several small and medium suppliers to go bankrupt.
Read: Teen Hackers’ JLR Cyberattack Could Lead To Supplier Bankruptcies
In a statement confirming the extended shutdown, JLR said its “focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open.” It added that it recognizes “this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”
This may not be the last time that the production halt is extended. Unnamed sources have told the BBC that the disruption could last into November. However, Jaguar Land Rover has dismissed this as “speculation.”
The production shutdown is reportedly costing the carmaker between £5 million ($6.8 million) and £10 million ($13.6 million) per day. Things are so bad that dealerships that staff are relying on manual paperwork to complete registrations.
Several suppliers have told the BBC that they lack the financial resources to cope with an extended shutdown. This prompted former Aston Martin boss Andy Palmer to recently suggest that some of them will go belly up, a sentiment echoed by others.
“We’re already seeing employers having discussions on potential redundancies,” added local union official Jason Richards. “People have to pay rent, they have to pay mortgages and if they’re not getting any pay, what are they supposed to do? We need to have a supply chain into Jaguar Land Rover. I can’t emphasize it enough [because] if they turn the tap on and they’re expecting the supply chain to be waiting on the subs bench, they won’t be there.”
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#JLRs #Woes #Continue #Halts #Production
