The biggest automaker in the UK, Jaguar Land Rover (JLR), is having problems locating semiconductors due to a global shortage. As a result, it has chosen to temporarily reduce output at its UK operations until March 2019.
The manufacturer would restrict output at its Solihull and Halewood factories between January and the end of March, according to industry insiders, as reported by The Guardian.
With the announcement of CEO Thierry Bolloré’s retirement last week, this is an attempt to give priority to its most successful models.
Chip shortages have been a problem for JLR and other manufacturers since the beginning of 2021. As the coronavirus outbreak worsened, several automakers reduced their purchases of computer chips, only to find themselves at the back of the line when demand surged again.
The Society of Motor Manufacturers and Traders, an industry association, revealed data on Friday, Nov. 25, demonstrating that UK vehicle manufacturing in October was just marginally higher than the level seen in 2019 before the pandemic.
According to The Guardian, the UK produced 69,524 vehicles in total, which is up 7% from 2018 but a decrease of 48% from 2019.
JLR announced a record order book of more than 205,000 automobiles in November. However, the company’s efforts to boost production of the most recent models of its Range Rover and Range Rover Sport vehicles (both of which are made in Solihull) and its Defender vehicle have been impeded by the chip shortage (which is produced in Slovakia).
Changes in UK Plants
According to the report, the cheaper Range Rover Velar and Jaguar F-Pace will be produced at Land Rover’s Solihull facility in the West Midlands during a single shift, while a second shift will be introduced to produce Range Rover body panels.
The Halewood facility in Merseyside will also operate only one shift per day. This plant also produces the smaller Range Rover Evoque and the Discovery Sport.
JLR has been working to assure its longer-term semiconductor supply and hasn’t yet decided whether to reduce shifts after March.
They just agreed to sell silicon carbide semiconductors to Wolfspeed in the US after signing a contract last month.
The Former CEO
After Bolloré abruptly announced his resignation for “personal reasons,” Tata, the Indian company that owns JLR, has been frantically trying to recruit a new CEO.
Following the departure, questions have been raised about the company’s plan for electrifying its product lineup in particular, though JLR insists that it will not change.
According to The Guardian, automakers would probably experience decreased demand in the short term during the projected prolonged recession and declining living standards in the UK.
Former CEO Bolloré voiced hope for a rise in chip supply during the company’s most recent financial results presentation in November, despite the fact that JLR has been losing money for the preceding 18 months.
He stated, “We intend to continue to enhance our performance in the second half of the year as new agreements with semiconductor partners come into force, enabling us to construct and deliver more vehicles to our clients.”
Stay connected with postvines for more information!!