Jaguar Land Rover cuts output at UK factories due to chip shortage

Carmaker Jaguar Land Rover (JLR) is lowering output at its factories in Solihull and Halewood till the spring, resulting from ongoing issues acquiring sufficient pc chips for brand spanking new autos.

The motion is anticipated to have an effect on the output of fashions such because the Jaguar F-Tempo and Land Rover Discovery Sport.

The transfer is known to be non permanent, as first reported within the Guardian.

Within the meantime, JLR will concentrate on extra worthwhile fashions such because the Vary Rover.

Output of those automobiles has been ramped up in latest months.

JLR’s manufacturing facility in Nitra, Slovakia, is just not affected.

Trendy automobiles are closely reliant on pc chips to regulate a wide range of onboard techniques, starting from anti-lock braking and emissions controls to satellite tv for pc navigation and in-car leisure.

However provides from East Asia have been closely disrupted within the wake of the Covid pandemic, whereas carmakers have confronted intense competitors for accessible provides from different industries.

In an announcement, JLR stated it could “proceed to actively handle the operational patterns of our manufacturing crops while the business experiences ongoing international semi-conductor provide chain disruption”.

“We count on our efficiency to proceed bettering within the second half of the yr, as new agreements with semiconductor companions take impact, enabling us to construct and ship extra autos to our shoppers,” it added.

UK automobile manufacturing nonetheless stays properly under ranges seen earlier than the pandemic, regardless of a rise in October, figures from the Society of Motor Producers and Merchants (SMMT) present.

The business constructed 69,524 automobiles in October, up 7.4% from a yr earlier, however the SMMT stated producers had been nonetheless affected by “turbulent” provides of elements.

“There’s been actual shortages within the provide chain, most clearly in semiconductors, which is main to essentially erratic ranges of manufacturing,” the SMMT’s chief govt Mike Hawes instructed the BBC’s At the moment programme.

“[Production] was up in October, however we count on it to be risky as we go ahead particularly when some elements come from China.”

Mr Hawes stated the UK was “no manner shut” to creating sufficient chips for the automobile business.

“Large investments are required and a few governments on the earth are placing up billions upon billions of kilos to draw funding and construct new fabs (semiconductor fabrication crops).

“We needs to be constructing about one million automobiles a yr, so when you’ve got about 1,500 chips per automobile you possibly can see simply how unbelievable the volumes of those chips you want simply to help the automotive business, not to mention issues like private electronics.”