JLR reduces output at factories due to chip shortage

JLR reduces output at factories due to chip shortage

Carmaker Jaguar Land Rover JLR is reducing output at its factories in Solihull and Halewood until the spring due to problems obtaining enough computer chips for new vehicles.

The action is expected to affect the output of models such as the Jaguar F-Pace and Land Rover Discovery Sport.

The move is not intended to be permanent, with JLR focusing on more profitable models such as the Range Rover.

In the past few months, output of these cars has gone up.

Modern cars are heavily reliant on computer chips to control a wide range of systems, from antilock braking and emissions controls to satellite navigation and in-car entertainment.

In the wake of the Covid epidemic, East Asia supplies have been severely disrupted, while carmakers have had to compete for available supplies from other industries.

JLR said in a statement that it would continue to manage the operational patterns of our manufacturing plants while the industry continues to experience ongoing global semiconductor supply chain disruption. It expects that our performance will continue to improve in the second half of the year, as new agreements with semiconductor partners will take effect, enabling us to deliver more vehicles to our clients.