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The recent shutdown of car manufacturer Jaguar Land Rover (JLR) following a cyber attack should serve as a stark “wake-up call” for the nation’s industrial resilience, according to a leading business professor.
The incident, which has halted all car production at the company’s UK plants, has prompted calls for government intervention to prevent the collapse of its vulnerable supply chain.
Professor David Bailey, of the University of Birmingham, estimates that JLR has been unable to produce approximately 24,000 vehicles this month.
This has resulted in a staggering £1.7bn in lost revenue and a profit hit of around £120m. While JLR itself is large enough to weather the financial storm, Professor Bailey warned that the many smaller businesses in its supply chain are far more vulnerable.
The disruption has no end in sight, with JLR stating production will not resume before September 24.
The crisis has captured the attention of politicians from across the spectrum. Labour MP Sarah Coombes has held multiple meetings with government ministers and affected businesses in her constituency, stressing the industry’s importance and the many jobs at risk. Conservative MP Bradley Thomas urged the government to keep “every option on the table” for support.
The debate now centres on what form that support should take. Professor Bailey has proposed a system of furlough or loan guarantees, similar to schemes in other countries like Germany, to support workers and businesses during the shock.
Liberal Democrat MP Helen Morgan suggested that JLR’s parent company, Tata, should be the first to support its supply chain, but agreed that the long-term cost of allowing these companies to fail would be far greater to the taxpayer.
The cyber attack comes at a time of existing difficulty for the car industry, already struggling with issues such as US tariffs. The incident not only highlights the growing threat of cyber attacks, but also exposes a systemic weakness in the manufacturing sector that may require government action to rebuild its resilience.
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Chris Price
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