Teen Hackers' Cyberattack on JLR May Result in Supplier Bankruptcies | Carscoops

      The British government may need to intervene and provide financial assistance to employees of JLR suppliers.

      The automaker has ceased production for over two weeks due to a cyberattack.

      JLR is estimated to be losing between £5 million and £10 million daily during this downtime.

      A hacking group called Scattered Lapsus$ Hunters has taken responsibility for the attack.

      Jaguar Land Rover is still significantly affected by a major cyberattack that occurred on August 31, reportedly executed by a group of online teenagers. Over two weeks later, the company is still unable to resume production and now anticipates that manufacturing will not commence before September 24 at the earliest. This situation is incurring substantial losses for JLR, and small to medium-sized suppliers are also experiencing adverse impacts, with fears that some may go bankrupt.

      Production Lines Halted

      Normally, the British automaker produces over 1,000 vehicles each day. However, since the cyberattack, no vehicles have been completed. The company has stated that it shut down its IT networks to prevent further harm. Given that its assembly lines and supply chains are highly automated, this protective action has also rendered it impossible to continue vehicle production.

      According to various experts, JLR's financial losses are likely between £5 million ($6.8 million) and £10 million ($13.6 million) daily. Moreover, it’s not just JLR that is facing repercussions, as many suppliers heavily rely on Jaguar Land Rover. Former Aston Martin CEO Andy Palmer believes that bankruptcies among these suppliers are a strong possibility.

      “Some of them will go bust. I would not be surprised to see bankruptcies,” stated Palmer to the BBC. “In the first week or so of a shutdown, losses are absorbed. But once the situation drags into the second week and more information emerges, significant cuts will be made. Therefore, layoffs may already be occurring or being planned.” One unnamed supplier has reported laying off 40 employees, which is nearly half of its total workforce.

      Concerns Escalate to Parliament

      The gravity of the situation has caught the attention of lawmakers, leading to increased demands for government intervention. Labour MP Liam Byrne, who heads the Commons Business and Trade Committee, emphasized that the broader effects of the cyberattack cannot be overlooked and called for official action.

      “What began in online systems is now rippling through the supply chain, risking a cashflow crisis that could transform a short-term setback into long-term damage,” he stated. “We cannot allow a key component of our advanced manufacturing sector to be weakened by uncontrollable events.”

      Sharon Graham, general secretary of the Unite trade union, urged the government to create a furlough system to subsidize workers’ wages while they are unable to work. “Thousands of workers in JLR’s supply chain are facing an immediate threat to their jobs due to the cyberattack,” Graham said.

      “Ministers must act swiftly to introduce a furlough scheme to protect essential jobs and skills while JLR and its supply chain recover,” she added.

      Hackers Take Responsibility

      The group known as Scattered Lapsus$ Hunters has claimed responsibility for the cyberattack. This group, reportedly comprising teenagers, has been connected to several prior breaches. They communicate via Telegram and following the JLR incident, they began taunting MI6, the National Cyber Security Center, and the UK’s National Crime Agency, according to The Telegraph.

      Investigators suspect that the hackers exploited a vulnerability in SAP-provided software to carry out a ransomware attack that significantly disrupted JLR’s digital infrastructure.