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Jaguar Land Rover to cut production in UK: Report

Production will be cut at the Jaguar Land Rover factories in Solihull and Halewood starting January 2023

November 25, 2022 / 04:08 PM IST
Jaguar Land Rover

Jaguar Land Rover

Carmaker Jaguar Land Rover (JLR) will be cutting production in the United Kingdom till March-end as it continues to struggle with chip shortage amid the global semiconductor crisis that started in 2021, The Guardian reported. JLR itself has been facing losses for the past 18 months.

Production will be cut at the factories in Solihull and Halewood starting January 2023, the report added.

Although JLR reported a record order of over 2,05,000 cars this month, the ongoing chip shortage has dampened its efforts to increase the production of the latest models of its Range Rover and Range Rover Sport, which are produced in Solihull.

The carmaker has not yet planned to reduce shifts beyond March as it will be procuring silicon carbide semiconductors from Wolfspeed, in the US.

The report quoted a JLR spokesperson as saying: “We continue to actively manage the operational patterns of our manufacturing plants whilst the industry experiences ongoing global semiconductor supply chain disruption."

“Demand for our vehicles remains strong. We expect our performance to continue improving in the second half of the year as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients," the spokesperson added.

The development comes within a week of JLR’s chief executive Thierry Bolloré announcing his resignation and Britain’s car production reaching just over half the pre-pandemic level in October. JLR owner Tata is currently looking for a new chief executive.

UK’s automobile industry reported 48 percent less production this year as compared to 2019, despite the numbers going up seven percent as compared to the previous year. In the near future, carmakers may also face a slump in demand as the country is dealing with a long recession.
Moneycontrol News
first published: Nov 25, 2022 02:59 pm