When supplies roll in on a consistent and reliable schedule, plants can perform “just-in-time” production, minimizing inventory costs and time wasted. But when this chain is somehow disrupted by cyber-attack or other factors, the costs can be significant for manufacturers – as reported in an article by ThreatPost. The post goes on to rightly explain that: “However, COVID-19 demonstrated the risks in just-in-time production, and ransomware is proving it again. When a perfectly choreographed dance of suppliers, workers, schedules and processes is interrupted by an IT shutdown – and there’s not much inventory to fall back on, on top of that – the consequences are felt more quickly and more severely than they otherwise would be.”
Since mid 2020 there have been a number of cyber-attacks on automotive manufacturers which inflicted significant impact on production and sales activity for the victim organisations. Notable examples are Honda in Jun-2020 and Kia in Feb-2021.
According to a report by cloud technology provider Upstream, which focuses on the automotive sector, automakers could lose approximately $1.1 billion for a single attack. Collectively, the entire automotive industry is estimated to lose up to $24 billion before 2023. Those most impacted as of today are fleet operators, Tier 1 suppliers, and car-sharing companies.
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