Imagine waking up to find your entire production line halted and millions of dollars lost. That’s the harsh reality Jaguar Land Rover (JLR) is facing after a devastating cyberattack led to a shutdown that impacted not just the automotive giant but also the livelihoods of thousands reliant on its operations. Just this week, the U.K. government stepped in, guaranteeing a staggering £1.5 billion ($2 billion) loan to help JLR recover from this crisis.

The loan is designed to bolster JLR's cash reserves, allowing them to support a supply chain that has been severely disrupted. It’s a lifeline for many small businesses across the U.K., where an estimated 120,000 jobs depend on the ongoing operations of JLR. This unprecedented step is particularly notable as it marks the first time the U.K. government has intervened financially for a company due to a cyberattack.

After detecting hackers infiltrating their systems on August 31, JLR immediately shut down its network. The breach was attributed to a financially motivated crime group, known for their previous attacks on the U.K. retail sector. It wasn’t just a simple data breach; JLR confirmed that sensitive company information was stolen, forcing employees to stay home while the network was rebuilt. It’s estimated that the shutdown has cost the company around £50 million, although they reported a commendable pre-tax profit of £2.5 billion in 2024, suggesting they might weather this storm.

However, the situation raises eyebrows. JLR didn’t have any cybersecurity insurance, which could have mitigated the recovery costs, and many experts warn that such a government bailout could inadvertently encourage hackers. Why target a business if you know the government will swoop in to save the day? Critics point to JLR’s decision to outsource cybersecurity to Tata Consulting Services (TCS), a move that might have left them vulnerable. TCS has been linked to other hacks targeting notable U.K. retailers, raising questions about the effectiveness of their cybersecurity measures.

As of now, JLR has announced plans to resume car production “in the coming days,” but with several missed recovery deadlines already, the road ahead remains uncertain for this automotive titan and its extensive supply network.