UK car production fell dramatically last month, with experts now warning that the same trend could be seen again in the coming weeks and months as Jaguar Land Rover recovers from a cyber attack.
New data has shown that UK car production fell by 18.2 per cent year-on-year, with just over 37,000 vehicles rolling off production lines.
The Society of Motor Manufacturers and Traders (SMMT) acknowledged that August tends to be one of the quietest months, given that most manufacturers have a planned summer shutdown to enable maintenance.
The SMMT said the fall in production, which breaks a two-month growth run, comes before September’s results, which are likely to be massively impacted by the cyber attack against Jaguar Land Rover.
The iconic manufacturer announced at the start of the month that it had been impacted by a cyber attack, forcing it to shut down its IT systems and halt production at its factories.
In the most recent update from the manufacturer, JLR said it was extending the production shutdown until Wednesday, October 1.
The Government has come to the defence of Jaguar Land Rover, with Business and Trade Secretary Peter Kyle meeting with JLR officials earlier this week.
While it has not yet confirmed whether a package of support will be provided to the JLR supply chain, a furlough-style scheme has been suggested by the Unite union.
Experts fear that September’s car production figures could be worse than August, when taking the JLR cyber attack into account
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A JLR spokesperson said: “Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC and law enforcement to ensure we restart in a safe and secure manner.
“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open.
“We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”
The Insurer, an industry journal, has claimed that Jaguar Land Rover “failed to finalise” a cyber insurance deal prior to the cyber attack at the end of August.
Staff at JLR’s factories have been told to stay off work until at least October 1
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PACiting three insurance sector sources, The Insurer claims that JLR remained in negotiations over cover, meaning the brand could face the costs of recovery itself.
Industry experts have also suggested that the cyber attack and continued production shutdown could lead to losses worth tens or even hundreds of millions of pounds.
Mike Hawes, chief executive of the SMMT, said the production focus was now on September and the impact of the cyber attack on JLR, Britain’s biggest automotive employer.
He continued: “Given this incident and the industry’s importance to jobs, growth and trade, rapid delivery of the Industrial Strategy and Drive35 is now critical.
Business Secretary Peter Kyle and Industry Minister Chris McDonald toured the factory of Webasto, who provide glass roofs to Jaguar Land Rover
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PA“The sector is resilient, but SMMT is engaged with members and the government to understand what additional supportive measures may be needed.”
The SMMT held an “extraordinary meeting” of its Automotive Components Section, which was attended by officials from the Department for Business and Trade.
The industry body said the meeting was set up to ensure the relevant bodies were able to listen to the supply chain and understand the challenges companies face.
The Government added that it was in communication with Jaguar Land Rover to support its workers and the wider supply chain.
