Tuesday, 02 January 2024 12:17 GMT

Jaguar Land Rover To Resume Some UK Output After Cyberattack


(MENAFN- The Peninsula) AFP

London: Jaguar Land Rover will restart some production at its UK sites from Wednesday after a damaging cyberattack halted operations for more than a month, the automaker said Tuesday.

Indian-owned carmaker JLR announced also plans for a new financing program to fast-track payments for struggling suppliers, including providing cash up-front.

Manufacturing will gradually resume in two factories in the West Midlands before extending to other sites.

The cyberattack is the latest setback for JLR, which reported a sharp reduction in sales after it halted exports of its cars to the United States in April in response to President Donald Trump's tariffs.

The company, owned by Tata Motors, on Tuesday reported a 24-percent drop in wholesale volumes in the second quarter, compared with one year earlier.

Retail sales fell 17 percent in three months to the end of September.

"There is much more to do but our recovery is firmly underway," chief executive Adrian Mardell said in a statement.

JLR said on September 2 that it had been targeted by hackers, severely disrupting sales and production and forcing the company to seek emergency funding.

The incident caused widespread disruption across its supply chain, with unions warning that some suppliers were at risk of collapse due to delayed payments.

The UK government agreed to a loan guarantee worth £1.5 billion ($2 billion) to help shore up the firm's cash reserves and supply chain.

Cyber gangs have increasingly targeted UK luxury brands and retailers, including Britain's Marks and Spencer, Harrods and the Co-op food chain.

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