The automaker failed to finalize a cyber insurance deal brokered by Lockton ahead of the incident, and appears to be uninsured directly for the attack, three senior cyber insurance market sources told The Insurer. JLR declined to comment.
The luxury carmaker, owned by India’s Tata Motors, has three factories in Britain, which together produce about 1,000 cars per day. The company, hit by a cyberattack has shut down its operations until October, is losing at least 50 million pounds ($68 million) a week, according to the BBC, with many of its 33,000 staff told to stay at home.
Britain’s government is considering a financial lifeline to carmaker Jaguar Land Rover’s suppliers after a shutdown caused by a cyberattack was extended until October, the BBC said on Thursday.
The luxury carmaker, owned by India’s Tata Motors, has three factories in Britain, which together produce about 1,000 cars per day. The company is losing at least 50 million pounds ($68 million) a week, according to the BBC, with many of its 33,000 staff told to stay at home.
Business minister Peter Kyle and industry minister Chris McDonald visited JLR on Tuesday and talked to the CEO about how the company can work towards restarting production.
“We have two priorities helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain,” said McDonald.
The BBC said ministers were considerig a scheme to buy component parts from the suppliers to enable them to survive until JLR resumes production.
Another option being considered is providing government-backed loans to suppliers, the BBC said, although it added that the idea was not popular with suppliers.
When asked about the BBC report, the business department pointed to a statement on Tuesday in which Kyle said “we are doing everything we can to minimise the impact of this incident.”
Worries Over Insurance
The automaker failed to finalize a cyber insurance deal brokered by Lockton ahead of the incident, and appears to be uninsured directly for the attack, three senior cyber insurance market sources told The Insurer. JLR declined to comment.
In Britain, just over four in ten businesses reported experiencing some form of breach over a 12-month period, according to official data published in June. Household names including Marks & Spencer and Co-op have fallen victim in recent months.
JLR said on Tuesday it was preparing plans to resume production even as it extended the pause.
“We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation,” JLR said.
JLR, which makes the Range Rover and Defender models, said its production supported 104,000 jobs in supply chains across the country. The Unite trade union has warned of job losses and called for government support to keep companies solvent.
Reuters