Jaguar Land Rover to Hang Output Owing to Chip Shortage

Jaguar Land Rover (JLR) is shutting its two main car factories temporarily due to a shortage of computer chips.

The difficulties at Britain’s biggest carmaker echo similar problems at other manufacturers, including Ford, who are hit by a worldwide shortage of chips.

JLR said there would be a “limited period” of closure at its Halewood and chateau Bromwich sites from Monday.

A mixture of strong demand and Covid shutdowns at chipmakers has also hit phone, TV, and video games companies.

Tata-owned JLR said during a statement: “We have adjusted production schedules surely vehicles which suggest that our Castle Bromwich and Halewood manufacturing plants are going to be operating a limited period of non-production from Monday 26th April.

“We are working closely with affected suppliers to resolve the issues and minimize the impact on customer orders wherever possible.” Production at a third factory, at Solihull, will continue.

The Castle Bromwich factory makes the Jaguar XE, XF, and F-Type models, and employs about 1,900 people. Halewood makes the Range Rover, Evoque, and the Land Rover Discovery Sport, and has about 4,000 workers.

The Covid-19 pandemic has driven up demand for semiconductor chips to be used in electronics like computers, as people worked from home, and suppliers are struggling to regulate.

There has also been a fireplace at a Japanese company, a part of Renesas Electronics, one of the world’s biggest makers of semiconductors for the car industry.

Also, on Thursday, France’s Renault warned that the chip shortage was worsening. On Wednesday, carmaker Stellantis, which owns the United Kingdom Vauxhall brand, said it might replace digital speedometers with more old-fashioned analog ones in one among its Peugeot models, as the fallout continues.

Daimler, General Motors, and Volkswagen have all suspended production lines at various times in recent weeks.

Modern cars contain complex electronics and are heavily reliant on semiconductors, which are utilized in systems starting from engine management to parking cameras.

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