Jaguar Land Rover Cyberattack Fallout Spreads to Suppliers

The cyberattack that’s brought Jaguar Land Rover Automotive Plc factories to a standstill is affecting suppliers, with some European parts makers forced to pause or scale back their own production.

German company Eberspächer Gruppe GmbH & Co., which manufacturers exhaust systems for the British carmaker, was forced to suspend production at its plant in Nitra, Slovakia after the cyberattack more than two weeks ago. Eberspächer is a key supplier to JLR, which operates a factory in Nitra making the Discovery and Defender models.

“Since the cyberattack, the production in our plant is also on hold,” Eberspächer spokesperson Anja Kaufer said. The company’s workers are either on holiday or on short-time work earning 80% of their salaries, she added. It has around 30 employees in Nitra.

JLR has been grappling with the fallout from the cyberattack which has disrupted production for a third week. Earlier Tuesday, the automaker said its factories will remain closed until at least Sept. 24, though there are concerns the shutdown could last even longer. The company warned last week that some data may have been compromised.

“We are continuously working to restore our global applications in a controlled and secure manner,” said Katarina Chlebova, a JLR spokesperson in Slovakia.

JLR’s Nitra plant produces around 130,000 vehicles a year, employs about 4,000 people and supports a wide network of parts makers in the region.

Other suppliers are also feeling the effects. Hollen, which ensures the quality of car parts, has implemented some restrictions due to the JLR shutdown, according to Chief Executive Officer Tomas Osusky.

“Nervousness is growing about what will happen next,” he said. “Several subcontractors have had to significantly scale back production depending on how strongly they are tied to Jaguar.”

Photograph: Jaguar Land Rover’s automobile plant in Nitra, Slovakia. Photo credit: Akos Stiller/Bloomberg

Related: