British auto retailer Vertu Motors said a cyberattack on Jaguar Land Rover could cut as much as 5.5 million pounds ($7.4 million) from its annual profits. The disruption, which shut down JLR’s systems for almost six weeks, has also hit Vertu’s sales across its 10 JLR dealerships.
Around 2 million pounds of the damage occurred in September, with the remainder depending on how fast JLR recovers. Vertu is exploring an insurance claim to offset some of the losses.
Excluding the JLR impact, Vertu expects profits to meet forecasts of 27.2 million pounds. It reported 20 million pounds in pretax profit for the first half of the fiscal year, about 10% lower than last year.
The attack, which forced JLR to temporarily halt production, underscores the vulnerability of carmakers and dealers to supply chain cyber risks. Vertu’s shares dropped 3.5% on the news.
