A ransomware attack disrupted Honda’s global operations on Monday, and is suspected to have penetrated the company’s corporate network. This comes at a time when Honda was just getting operations back to fuller capacity after the Covid-19 driven complete suspension at major facilities, and while it is struggling with a drop in auto and motorcycle sales in every major market. Honda staff were advised not to access their work computers on Monday, and to take paid leave on Tuesday if possible.
Operations spanning Ohio — Honda’s main production base in the US — to Turkey, Brazil and Japan were all ground to a halt as the company scrambled to assess the breach that disrupted its network.
Like other Cyberhedge 2-Star rated companies, Honda’s below average cyber governance (which has been trending lower over the past 6 months) has been a warning to investors about the potential for an underperforming share price due to the technology management challenges the company faces.
Our models show Honda scores worse vs. peers on specific cyber metrics related to lack of remediation and poor process in cyber. This suggests insufficient resources and priority to resolving network security problems—especially due to the warning signs of Honda’s repeated security incidents in the past year.
The severity and duration of the work stoppage is still unknown, but the costs to fix the problems and resume operations will place further financial constraints on company finances, which are already struggling under the weight of the pandemic.