Jaguar cuts production as chip shortage bites

JAGUAR Land Rover is being forced to reduce the production of cheaper models in at least one of its plants as it battles a worsening parts crisis.

The car maker (JLR) will move to one shift a day from two at its Solihull plant for its Range Rover Velar and the Jaguar F-pace models for the first three months of next year, while cuts at another factory in Halewood are also being considered. No jobs will be lost.

Sources said that in common with many other car manufacturers, JLR will funnel the chips it can obtain into higher-priced vehicles such as the Range Rover and Range Rover Sport, where production will increase.

Car makers are two years into a global shortage of computer chips which has halved the output of British factories.

The crisis has been blamed on chip makers switching to producing higherspec models after car production was halted during the lockdowns of the pandemic, and consumer electronics companies increased demand amid a scramble for home entertainment and remote working equipment.

Another factor is the slow production cycle of cars compared with other goods using chips. Some models are using chips designed 10 years ago, which fewer plants are producing.

The move comes after the surprise departure of the company’s chief executive Thierry Bolloré, who the company said was stepping down for personal reasons last week.

JLR said: “We continue to actively manage the operational patterns of our manufacturing plants whilst the industry experiences ongoing global semiconductor supply chain disruption.”