Jaguar Land Rover fans aren’t likely to be pushed into shopping the company’s competitors after a crippling cyberattack last month, but customers looking for replacement parts for their upscale rides might get squeezed in the coming months.
Jaguar Land Rover owners could feel the pinch from service issues in their wallets.
The situation isn’t expected to resolve soon, although the iconic British company owned by Tata Motors of India has received some assistance and has been trying to work through its issues.
How extensive was the cyberattack?
Extensive is putting it mildly, with manufacturing stopped. The company reported on Sept. 2 that it had “proactively” shut down its systems. On Monday, Sept. 29, the company announced that “some sections of our manufacturing operations will resume in the coming days.”
Erin Keating, executive analyst at Cox Automotive, said the attack had hit the automaker’s suppliers particularly hard. That’s one reason the British government had moved to shore up the supply chain with a $2 billion loan guarantee, according to Reuters, which was in addition to a $2.69 billion “funding facility” the company received from commercial banks.
Cyberattacks aren't new in the automotive industry, and Jaguar Land Rover isn't unique among automakers in being a victim, of course.
A cyberattack against Chicago-based CDK Global last year upended car dealership operations across this country last year, forcing some to shift to paper records.
Just last month, Stellantis, maker of Jeep, Ram, Chrysler, Dodge and Fiat, acknowledged a breach of customer data, which the company described as involving basic contact information but which highlighted how extensive this threat has become.
"We are in a world where cyberattacks are just one more potential issue in manufacturing. While this one was an isolated incident, nobody should expect JLR to be the last target," according to Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions.
How is the cyberattack affecting buyers?
Experts said Jaguar Land Rover has ample inventory in the United States currently so finding a new car on the lot shouldn’t be a problem right now. Keating noted that both the Jaguar and Land Rover brands have more than 100 days’ supply of new vehicles (Jaguar has more than 200).
For those customers who might want to order a new car to get just the right color, that wait is likely to be longer than it otherwise would be, Keating said, noting that that might not be such a bad thing as it could translate into more sales from the existing inventory if those customers aren’t as interested in waiting.
Fiorani said that like other foreign automakers Jaguar Land Rover had stockpiled inventory ahead of tariffs, providing a bit of a cushion, although “a month of lost production will eat into that supply, impacting sales late this year.”
Are there any issues at dealerships?
The National Automobile Dealers Association said in a statement on Wednesday, Oct. 1 that dealerships have definitely been affected:
"The recent cyberattack on Jaguar Land Rover has significantly impacted dealer operations, resulting in interruptions to vehicle registrations, parts procurement and repair services, as some systems remain offline. Despite these challenges, dealers have demonstrated resilience by remaining open and working diligently around the clock to meet their customers' needs. U.S. dealers are currently awaiting further guidance from Jaguar Land Rover regarding the timeline for returning to normal operations."
What will it mean for getting vehicles serviced?
Service issues are expected, and that will be a cost for consumers, according to Fiorani.
“Customers will find a shortage of parts and could see extended stays in the shop for their Land Rovers and Jaguars before the end of 2025. Shortages of parts always lead to cost increases as everyone scrambles to acquire what is available,” Fiorani said. “Routine maintenance, typically requiring commodity parts like windshield wipers and oil filters, aren’t likely to see much of an impact.”
Will used sales be affected?
Not likely.
“New Jaguar and Land Rover buyers are a vastly different group than those purchasing used and few prospective new buyers will step onto the used lot instead of waiting for a new Defender or Range Rover,” Fiorani said.
A big part of that difference goes to income levels. Customers who buy new vehicles from the company are typically higher income, those making $200,000 or more annually, according to Keating.
She noted the average listing price for a Jaguar at $75,000 and $108,000 for a new Land Rover.
Those customers tend to be more brand loyal as well because Jaguar Land Rover models “come with their own unique allure. Sure, buyers might visit a BMW or Mercedes-Benz dealer, but these buyers will overwhelmingly wait for a Land Rover or pony up for a model in stock,” Fiorani said.
Eric D. Lawrence is the senior car culture reporter at the Detroit Free Press. If you've got a tip or suggestion, contact him at elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.
This article originally appeared on Detroit Free Press: Cyberattack disrupts Jaguar Land Rover dealerships. What does it mean for consumers?
Reporting by Eric D. Lawrence, Detroit Free Press / Detroit Free Press
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