ICONIC car brand Jaguar Land Rover has been forced to halt all production at its £1.04billion Nitra plant in Slovakia – after being forced to shut down its IT systems.
The manufacturer reported a significant cyberattack on its systems last week, resulting in the complete halt in production as well as a host of other issues.
Jaguar Land Rover has been forced to halt all production at its Nitra plant in Slovakia[/caption]
The car brand has been victim to a cyberattack which has caused disruption to its IT syetems[/caption]
Last week, JLR dealerships were unable to register new cars bought on ‘new plate day’[/caption]
JLR is reportedly collaborating with cybersecurity specialists and law enforcement agencies to address the situation[/caption]
Thousands of workers will be kept on pause until at least Thursday at JLR plants in both the UK and in Slovakia, as well as in Brazil and India[/caption]
This included extensive disruption to their manufacturing and sales operations globally, including dealerships being unable to register new vehicles during the launch of the new ’75’ registration plates – a day traditionally regarded as one of the busiest of the year for car dealerships.
The cyberattack, described by JLR as a major “cyber incident,” was confirmed by its parent company, Tata Motors, in a message to the Indian stock exchange, referring to it as an “IT security incidence.”
Over the weekend, it was reported by the Slovak Spectator that Tata Consultancy Services Ltd, which provides JLR’s IT services, is now working urgently to resolve the problem.
The carmaker told them it had “taken immediate steps to mitigate the impact by proactively shutting down our systems”.
It is now “working on the controlled and safe restart of global applications” and stressed that there was no evidence of customer data theft.
They did, however, acknowledge that “our sales and manufacturing activities have been severely disrupted”.
Indeed, while JLR’s public-facing website, including its car configurator, remains functional, internal systems used for car registration have been severely impacted.
SHUT DOWN
The Nitra site, which employs around 5,000 people and produces the Land Rover Defender and Discovery, has been halted for several days.
Meanwhile, employees in the UK, including at their Halewood and Solihull sites, were also told to stay home due to the IT failures.
JLR is reportedly collaborating with cybersecurity specialists and law enforcement agencies to address the situation, but worryingly, the scope and duration of the problem remain unclear.
The Guardian also reported that production at JLR, as well as dozens of its suppliers, is to remain on hold for at least this week – although they added that JLR will update workers on Monday on plans for later in the week.
It is likely that thousands of workers will be kept on pause until at least Thursday – possibly even beyond – at their plants in both the UK and in Slovakia, as well as in Brazil and India.
Disruption at the carmaker is expected to last until October.
The Sunday Times reported that Evtec, WHS Plastics, SurTec and OPmobility, all of whom employ more than 6,000 members of staff in the UK, are among the suppliers who have told their workforces to stay at home.
At the weekend, JLR said in a statement: “We continue to work around the clock to restart our global applications in a controlled and safe manner following the recent cyber incident.
“We are working with third‑party cybersecurity specialists and alongside law enforcement.
“We want to thank all our customers, partners, suppliers and colleagues for their patience and support. We are very sorry for the disruption this incident has caused.
“Our retail partners remain open and we will continue to provide further updates.”
In a statement to Sun Motors last week, JLR reiterated: “At this stage there is no evidence any customer data has been stolen but our retail and production activities have been severely disrupted.”
TESTING TIMES
These disruptions come amid a host of challenges for JLR in recent times.
Last year, the brand experienced global backlash over the rebrand of Jaguar, which involved replacing the iconic wild cat logo and releasing a teaser video focused on bright colours and catwalk models – but no cars.
The campaign sparked outrage with critics, including President Donald Trump, labelling it “woke” and “absolute turmoil.”
Despite this, JLR’s incoming CEO, PB Balaji, has claimed that customers are responding positively to the rebrand – which aims to target younger consumers and sell fewer cars at higher prices.
Jaguar’s new direction includes the unveiling of the Jaguar Type 00 concept and a shift towards producing fully electric vehicles, set to launch next year.
This has led to operational setbacks, including up to 500 job cuts and a dramatic 97.5% decline in European sales – although this can simply be attributed to their pause in production until the electric lineup is ready.
Adrian Mardell, JLR’s current CEO, is set to step down in December after 35 years with the company, with Balaji taking over.
Mardell’s departure is unrelated to the rebranding controversy.
JLR’s turbulent times
- Cyberattack: A major IT breach forced JLR to shut down systems, halting production at the Nitra plant and disrupting global manufacturing and sales operations.
- Dealership impact: Dealers were unable to register new vehicles during the launch of ’75’ registration plates – a key sales day.
- Rebranding backlash: Jaguar faced criticism over its rebrand, including the removal of its iconic logo and controversial marketing campaigns.
- Operational setbacks: Up to 500 job cuts and a 97.5% drop in European sales as Jaguar pauses production ahead of its electric lineup.
- Tariff challenges: As reported in the US, tariffs have reduced exports from the Nitra plant, impacting operations.
- Leadership transition: Current CEO Adrian Mardell is set to leave in December, with PB Balaji taking over.