Jaguar Land Rover 'working closely' with suppliers on chip shortage

Will Green is news editor of Supply Management
23 April 2021

The global semiconductor shortage has hit operations at Jaguar Land Rover (JLR), which has been forced to suspend production at two UK plants.

The carmaker said its Castle Bromwich and Halewood sites would be “operating a limited period of non-production” from Monday (26 April).

JLR said it was working with suppliers to “resolve the issues”.

The move comes as industries struggle with the chip shortage, caused by factors including a slowdown in semiconductor production due to the coronavirus pandemic and surging demand for electronic goods. The situation has been exacerbated by production problems at factories, including a fire at a major supplier in Japan and extreme weather in the US chip-making heartland.

“Like other automotive manufacturers, we are currently experiencing some Covid-19 supply chain disruption, including the global availability of semiconductors, which is having an impact on our production schedules and our ability to meet global demand for some of our vehicles,” said JLR.  

“As a result, we have adjusted production schedules for certain vehicles which means that our Castle Bromwich and Halewood manufacturing plants will be operating a limited period of non-production from Monday 26 April. Manufacturing continues at our Solihull plant.

“We are working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible.”

In January carmakers including Volkswagen, Toyota and Fiat Chrysler reported semiconductor supply bottlenecks, which slowed production.

Chipmakers have responded by boosting production capacity, with Taiwan Semiconductor Manufacturing Company last week announcing $100bn in investment.

In March the EU set a target to produce 20% of global semiconductor output by 2030 and US president Joe Biden has ordered a supply chain review.

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