British luxury automaker Jaguar Land Rover has been on a bumpy road over the last 18 months.
Last year, Jaguar caused a stir when it announced that the company would stop making most of its lineup to give the brand a “clean slate” with its new all-electric lineup.
The announcement and subsequent ad campaign caused a stir on social media among loyalists who accused the company of being “woke.”
Since then, U.S. tariffs on auto imports have eaten into its profits more than bad PR ever could.
In June, after the U.S. and UK agreed on tariffs, JLR lowered its fiscal 2026 EBITDA growth estimate from its previous 10% forecast to between 5% and 7%. The company expects free cash flow to be close to zero in the period.
JLR sells about a quarter of its vehicles in the U.S. market.
But the cyberattack and subsequent work stoppage that hit its UK factory have been the most devastating yet.
Range Rovers made in the UK have been put on pause.
Image source: Jaguar Land Rover
Jaguar Land Rover faces cyberattack that halts production
JLR announced this month that it was forced to shut down its systems in early September to contain a cyberattack that disrupted its retail and manufacturing operations.
The attack forced the company to shut down its three factories in Britain, which produce about 1,000 cars a day. It has told many of its 33,000 staff to stay home.
Related: Luxury automakers have a more aggressive tariff battle plan
However, Reuters reported that JLR’s British supply chain could also be affected, as the company’s operations involve many smaller companies and support over 100,000 jobs across the country.
“JLR have the resources to withstand this financial shock, and their employees are still getting paid during the downtime, but their supply chain is now severely impacted by this — they’re not shipping parts, so they’re not getting paid,” automotive analyst Charles Tennant told Coventry Live.
This week, Jaguar gave a timeline for how long this issue will persist, but reports already indicate that JLR’s own estimates are too conservative.
Jaguar Land Rover to shutter production for at least another week
On September 16, Jaguar announced that it will keep its UK plants closed until Wednesday, September 24.
“We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time,” the company said in a statement.
Related: LG Energy Solution update is great news for EV carmakers
“We are very sorry for the continued disruption this incident is causing, and we will continue to update as the investigation progresses.”
However, the British newspaper The Telegraph reported earlier this week that the production shutdown could actually last until November, although JLR denies this.
“This cyber incident is taking JLR longer to resolve than many people probably thought and will mean they will have lost the best part of a month’s global production costing over one billion pounds GBP in lost sales revenue,” Tennant said.
Jaguar takes a big hit from U.S. tariffs
Jaguar Land Rover announced that it was pausing U.S. shipments from the UK in April before restarting them after the the U.S. and UK announced they had reached a deal on the framework for a tariff deal.
While the new tariff deal is much better than the 25% tax Jaguar Land Rover faced before the new pact, JLR, the UK-based subsidiary of India’s Tata Motors, says it still expects to pay a heavy price.
JLR sells about a quarter of its vehicles in the U.S. market, and while the U.S. has a deal with the UK, Jaguar also makes vehicles in other European factories.
Slovakia makes its popular Land Rover Defender, so import taxes from there could potentially be even higher. Slovakia is part of the European Union and does not fall under the UK trade umbrella.
JLR says it is engaged with authorities as they continue to negotiate the trade deal.
Related: Jaguar Land Rover has big, growing problem on its hands