Cyber attack on JLR should be a ‘wake-up call’ for British industry – minister

Industry minister Chris McDonald has said he is “supremely confident” that Jaguar Land Rover (JLR) will get through its cyber attack – but warned that it should be a wake-up call for British industry.

A cyber attack hit JLR, the UK’s largest carmaker, on August 31 and the company has extended its pause in production until October 1, having an impact on the companies that supply it.

During a visit on Tuesday to manufacturer Webasto, which supplies parts to JLR, in Sutton Coldfield, in the West Midlands, Mr McDonald said “we can’t underestimate just how serious the attack is”.

He said: “The most important thing for people to remember is that JLR will get through this.

“I am supremely confident that JLR will get through this. They’re a large company, they are very well supported by their parent, they’ve reorganised themselves internally to be able to deal with this, they’re making progress every single day.”

He added: “What I really want this to be is a wake-up call to British industry. I’m affronted by this attack on British industry. This is a serious attack on a flagship of British industry.”

Mr McDonald said he encourages anyone running a business to “presume that you are under cyber attack” and make sure the company’s cyber security is up to date.

He said: “There are people every single day, it’s their job to do this, they are trying to take British companies down.”

JLR is currently taking the lead on support for its own supply chain, rather than any state intervention, but the Unite union has called for a furlough scheme for workers in the company’s supply chain.

When asked if there are plans for a furlough scheme, Mr McDonald said: “Now that we’ve got teams of people working at JLR, I feel like we are getting to the point where we are getting to grips with the problem there.

“It’s really important that anything that happens is led by the businesses themselves, rather than saying we should pick a scheme off the shelf and apply that to the entire supply chain, which might help some businesses and not help other businesses.

“I think what’s important is to be responsive to the business leaders. People running the businesses know the businesses better than anybody else so I want to talk to them and find out what they think their issues are.”

MPs from across the West Midlands and Merseyside, where JLR has plants, have also called for Business Secretary Peter Kyle to consider Covid-style loans to support supply chain firms employing around 200,000 workers.

Mayor of the West Midlands Richard Parker said it is “really important” that the Government understands the impact on businesses in the region.

He said: “At this point in time, JLR and the Government are collating information on the impact that the lockdown has had on the supply chain, businesses here in the West Midlands.

“When we have got that information we will be in a better place to assess what’s needed to ensure that we protect jobs and ensure that the supply chain remains in place when Jaguar is back producing cars.”

Chairman of the Business and Trade select committee Liam Byrne said the issues at JLR are “a test for Government”.

The Labour MP for Birmingham Hodge Hill and Solihull North said: “This is no small glitch. This is a cyber-shockwave that has brought yet another national institution to a standstill.

“Jaguar Land Rover is not just a carmaker. It is the heart of our advanced manufacturing, the anchor of a vast supply chain, and a cornerstone of both our regional and national economy.”

He added: “This is not a problem for JLR alone. This is a test for Government. We will keep pressing ministers to track both the immediate and the wider economic fallout – and to be ready to act.”

Mr McDonald also visited JLR’s Gaydon headquarters with Mr Kyle to meet the company’s chief executive and senior executives.

Mr Kyle said: “I know this is a deeply worrying time for all those affected by the ongoing cyber incident and that’s why I visited JLR today to hear from the company, supply chain and workers.

“Getting JLR back online as soon as possible is my top priority, providing much-needed certainty to workers and suppliers.

“This Government is on the side of our world-leading automotive sector and by working closely with JLR and the Society of Motor Manufacturers & Traders we are doing everything we can to minimise the impact of this incident, as well as helping the sector thrive long into the future through our modern industrial strategy.”