By HUGO DUNCAN BUSINESS EDITOR Updated: 00:00 BST, 25 September 2025
Jaguar Land Rover was not insured against the cyber attack that shut down production and left its suppliers facing collapse, it was claimed last night.Britain's biggest carmaker was still finalising cover when hackers broke into its computer systems at the end of August and forced it to pause manufacturing at its factories.It means JLR faces shouldering the full bill from a crisis that threatens to cost it billions.Around 1,000 vehicles a day usually roll off its production lines in the West Midlands and Merseyside and the shutdown is so far estimated to have cost it nearly £2billion in lost revenue.JLR this week extended the pause in production into next month. But it is feared it could last until November, depriving it of £3.5billion in revenue and £250million of profit. But the company, one of the biggest names in British manufacturing, will not be able to recover those losses because of the lack of insurance.A spokesman for JLR, which is owned by Indian giant Tata Motors, said: 'We do not comment on commercial matters.'JLR's lack of insurance was first reported last night by industry journal The Insurer.The company was said to be in talks with insurance broker Lockton but nothing had been finalised when the attack occurred. By contrast, Marks and Spencer did have cyber insurance cover in place before it was targeted in April. Jaguar Land Rover was not insured against the cyber attack that shut down production and left its suppliers facing collapse, it has been revealed (File image)The crisis engulfing JLR has sparked fears over the future of its suppliers as smaller companies lay off staff and halt production. Ministers are under mounting pressure to act – from their own MPs and the unions who have demanded a furlough scheme for workers suffering due to the shutdown.Business Secretary Peter Kyle rejected such calls to subsidise the wages of workers affected, but he was last night reported to be considering using taxpayer funds to buy parts directly from JLR suppliers to save them from collapse.Under the plan, the Government would then sell the parts to JLR when production resumes.Mr Kyle met JLR bosses and firms in the supply chain this week to try to find a solution. JLR is attempting to clear a backlog of payments owed to suppliers.'Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open,' a spokesman said. 'We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.'Labour's Liam Byrne, a local MP and chairman of the Commons business and trade committee, has said the issues at JLR are 'a test for the Government'.
