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Jaguar Land Rover posts loss after cyber hack and US tariffs

Financial Times Companies •
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Jaguar Land Rover reported an annual loss after a ransomware strike and the rollout of new US tariffs on steel and aluminium. The Tata Motors‑owned group said the cyber incident forced a production halt in its UK plants, while tariff‑induced cost pressure squeezed margins. CEO Thierry Bolloré pledged a “more resilient” operation moving forward. The breach also encrypted design files, delaying shipments for weeks.

The loss follows a year in which JLR posted a modest profit, buoyed by strong demand for its Range Rover line. Analysts estimate the ransomware disruption cost the firm upwards of £200 million, and the 25% tariff on imported components adds roughly £150 million to its cost base. Supply‑chain analysts warn the tariffs may push sourcing to costlier domestic suppliers. The combined hit erodes the subsidiary’s cash flow.

Investors reacted with a 7% slide in JLR’s share price, widening the gap between Tata Motors and its peers in the premium‑car segment. Bolloré’s resilience plan centers on diversifying the supply chain, accelerating EV rollout, and shoring up cyber‑security protocols. If the turnaround succeeds, JLR could restore its dividend payout and reassure bond investors. The moves aim to stabilise earnings and protect the brand’s long‑term valuation.