Survey assesses impact of JLR cyber attack on supply chain

A survey of businesses in the Jaguar Land Rover (JLR) supply chain is under way to assess the impact of the car-maker halting production following a cyber-attack last month.

There are more than 100,000 people working for companies in the chain, with fears growing that smaller firms could go bust without support.

The survey, launched by the Greater Birmingham, Black Country, and Coventry and Warwickshire Chambers of Commerce, seeks to not only understand the difficulties faced by businesses but also gauge what help they might need.

The exercise – in which parties may participate anonymously – closes on Friday, with findings set to be shared on Monday.

JLR has been unable to produce cars since the attack at the end of August, which forced it to shut down its IT networks

The brand, which has plants in Solihull, Wolverhampton and Merseyside, employs about 30,000 people directly. In addition to the further 100,000 in the supply chain, about 60,000 people are estimated to rely on the spending of these workers.

Jan Jennings from the Black Country Chamber of Commerce told BBC Radio WM: “It’s such a difficult time for people right across the business and we’re hearing lots of anecdotal information from people.

“But what we really want is some hard data we can share with decision makers and those best placed to help our businesses.

“[We want to know] what life is like for them right now, how is this cyber attack affecting them, how significant the impact has been, what measures businesses are taking to mitigate that impact, and what support they would like to see from regional and national politicians and decision makers.”

Ms Jennings said the chamber of commerce had been in contact with different businesses and had seen an array of different responses, with some people “positive about what the future might be”, while others were more nervous.

One idea the government is exploring is for it to buy the component parts built by the suppliers to keep them in business until JLR’s production lines are up and running, and then sell on those parts to JLR.

Ms Jennings said: “To hear this sounds encouraging… The proof in the pudding will be in the eating.

“I think really, though, what businesses want is that certainty.”

Corin Crane from Coventry and Warwickshire Chamber of Commerce said of the idea: “It could be a part of the solution. It seems like an interesting one – whether it can work in practice is another matter.”

However, some suppliers have reacted with scepticism.

One company boss said: “To say we’re disappointed is an understatement. They simply don’t understand the complexity of what they’re dealing with.”

People within the industry have told the BBC the proposal would create major logistical challenges, including a lack of warehousing and specialised packaging, and problems tracking large numbers of parts, especially when JLR’s own systems are not working.

There are also concerns about how the stockpiled parts would be integrated into what normally operates as a seamless “just in time” system, where parts are ordered, delivered and fitted on cars exactly where and when they are needed.

One supplier told the BBC “we’re encouraged they’ve started looking at what can be done”, but “well-intentioned actions” could simply add cost and complexity, while not providing the help needed.

Industry publication The Insurer reported that JLR had not been able to finalise an agreement for insurance against a cyber-attack ahead of the incident.

The BBC has contacted JLR for comment.

Duncan Sutcliffe, from Sutcliffe & Co Insurance in Worcester, told BBC Radio WM that estimates suggested only 10% of organisations in the UK had cyber insurance.

He said: “We’ve been insuring against fires and thefts and earthquakes for hundreds of years but how often do we realistically see those happening?

“But with cyber incidents they’re continuous – they estimate 50% of organisations will have a cyber breach of one form or another every year.

“So it’s like having the front door of your house being tried by burglars every day but doing nothing about it.”

Additional reporting by Theo Leggett