JLR Cuts Back Production Suffering Semiconductor Shortage

Jaguar Land Rover (JLR) is cutting back car production for several months because of a shortage of semiconductors for new vehicles.

The British carmaker is focusing on continued production of its most expensive and lucrative models, such as the Range Rover lineup, at the expense of those vehicles with lower price tags, reports the BBC. Vehicle out will be reduced at its factories in Solihull and Halewood until at least the spring of next year.

The action is expected to affect the output of models such as the Jaguar F-Pace and Land Rover Discovery Sport. It is understood that the measures will be temporary with JLR’s factory in Nitra, Slovakia, not being affected.

It is reported that supplies of the computer chips from East Asia have been heavily disrupted in the wake of the Covid pandemic, leaving automakers clamoring among themselves and other electronics industries to grab the supplies that are available. In a statement, JLR said:

“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.”

UK car production still remains well below levels seen before the pandemic, despite an increase in October, figures from the Society of Motor Manufacturers and Traders (SMMT) revealed. The industry built 69,524 cars in October, up 7.4% from a year earlier, but the SMMT said manufacturers were still suffering from “turbulent” supplies of components.

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_

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