JLR Resumes Payments and Rebuilds IT Systems Following Cyber Attack
Jaguar Land Rover (JLR) begins paying suppliers as it restarts IT operations after a cyber attack. Production remains suspended until October 1st, affecting global supply chains.
JLR Resumes Payments and Rebuilds IT Systems Following Cyber Attack
Jaguar Land Rover (JLR) has finally started the process of paying its suppliers as it works to restore its IT systems, which were severely compromised due to a cyber attack that occurred on September 1st. Although the payment systems are now operational, the auto manufacturer has announced that its production lines will remain inactive until October 1st, extending uncertainty for both suppliers and retailers.
Impact of the Cyber Attack
The cyber attack has crippled operations at JLR, forcing the company to shut down its internal systems to protect sensitive data from potential breaches. As a result, all of JLR's global plants faced production halt, causing significant delays and issues with parts ordering. Retailers have also suffered due to the shutdown, leading to discussions in the UK government concerning emergency measures to support affected suppliers and prevent layoffs.
JLR has reported that it is making progress, stating, "sections of our digital estate are now up and running," including vital payment systems. The company is dedicated to addressing the backlog of payments to suppliers promptly. Furthermore, JLR's Global Parts Logistics Centre, responsible for distributing parts to retailers worldwide, is gradually resuming full operations, allowing service and repairs to recommence.
Steps Toward Recovery
In addition to restoring its payment systems, JLR is now able to digitally sell and register new vehicles, a process that had been temporarily managed over the phone due to the IT issues. In a company statement, JLR expressed the importance of these initial steps, highlighting the collaboration with cybersecurity specialists, the UK government’s National Cyber Security Centre (NCSC), and law enforcement to ensure a secure and safe restart of operations.
Despite the positive updates regarding IT recovery, the company has not yet outlined a specific timeline for resuming production. Previously, JLR planned to restart operations on September 24 but soon extended the pause for an additional week to ensure all systems are fully operational and secure.
This extended downtime means that JLR stands to lose significant production, as the company had already halted all vehicle production since the cyber attack. The financial implications of this disruption are stark, with estimates indicating potential losses of up to £5 million a day. Production figures will be disclosed in an upcoming quarterly report, although last year, JLR produced over 80,000 vehicles in the three months leading up to September.
Repercussions for Employees and Suppliers
The repercussions of the cyber attack have notably affected JLR's workforce. With the majority of employees sidelined during the shutdown, many have seen lost hours accumulate. Union representatives from Unite have reported that employees within the supply chain are being advised to apply for Universal Credit as their employers shift them onto reduced or zero-hour contracts in an attempt to cope with the crisis.
Unite General Secretary Sharon Graham stated that they have approached the UK government to propose the establishment of a furlough scheme focused on supplier support. This scheme would alleviate financial pressure on workers who are unable to perform during the ongoing recovery efforts. Graham emphasized, "Workers in the JLR supply chain must not bear the brunt of the consequences from this cyber attack. The government must act to safeguard these jobs and critical industries."
Rebuilding Trust and Systems
The incident first came to light on September 1, during a peak registration period when dealers faced issues registering new cars. JLR responded swiftly, shutting down its systems on September 2 to mitigate the potential impact. Ongoing assessments led to the identification of some compromised data, but the exact nature of the data breach remains unclear, as does whether a ransom demand has been made.
On September 3, a hacking group known as Scattered Lapsus$ Hunters announced their involvement in the attack, claiming to have accessed customer data by exploiting a flaw in JLR’s IT systems. This group is notorious for previous attacks, including one on Marks & Spencer, which resulted in extensive operational disruptions and financial losses for the retailer.
The U.S. Cybersecurity and Infrastructure Security Agency had previously issued warnings regarding a flaw in third-party software used by JLR. There have been updates available to address this vulnerability, but it remains uncertain whether JLR had implemented these updates or addressed security in its systems effectively.
Moving Forward
While JLR begins the recovery process, it remains crucial for customers and stakeholders to stay informed. The road to recovery will take concerted effort from all parties involved. Understanding the vulnerabilities that led to this incident is key to securing the company against future cyber threats.
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In summary, while the fallout from the cyber attack presents challenges, JLR is taking significant steps to restore its operations. The path ahead involves rebuilding trust with suppliers, customers, and employees while safeguarding against future vulnerabilities.