Jaguar Land Rover set to end chip shortage

A global shortage of solid-state computer chips has caused shutdowns at the Jaguar Land Rover plant in Halewood – but the end of the problem is now in sight. Tony McDonough Reports

Computer chip shortage forced production shutdowns at Halewood

Car maker Jaguar Land Rover (JLR) has suffered huge disruption at its Halewood, Merseyside plant due to a global shortage of computer chips, but a resolution could be near.

JLR employs around 3,700 people at the plant that assembles the Land Rover Discovery Sport and Range Rover Evoque models. But as recently as the end of October, there was a weeklong production shutdown, and it wasn’t the first.

The company has experienced similar problems at its other UK factories in the West Midlands and at facilities around the world. Other automakers are also suffering. Stellantis, owner of the Vauxhall plant in Ellesmere Port, also experienced a significant slowdown in production.

JLR last week reported a drop in quarterly sales and a pre-tax loss of £ 302million, blaming the current global chip shortage. He says global demand for his products remains strong, but the chip shortage meant he was unable to ship enough cars. In the summer, it was reported that the waiting list for company cars could last up to a year.

Digital vehicle systems control everything from engine management to driver aids, including satellite navigation systems, on-board cameras, and radio and communications devices. But this reliance on technology has created a new crisis for the auto industry as it still tries to recover from the COVID-19 pandemic.

When the pandemic started in early 2020 at chip factories, especially in the Far East in countries like Taiwan, the pandemic caused factories to shut down. At first, this was not so much of a problem as a drop in orders from manufacturers eased the pressure on demand.

However, as more people were sent home to work, the demand for laptops and other home technology began to soar. The demand for semiconductor chips suddenly increased and the industry was unable to meet it. A fire at a Japanese semiconductor manufacturing plant for the automotive industry has exacerbated the shortage.

In the short term, JLR says the semiconductor shortage remains “dynamic” and difficult to predict. However, he says he expects a gradual recovery from the second half of his fiscal year in 2022.

The company says it is now working more closely with semiconductor and tier one vendors to address the shortage. In a statement, he said: “Although supply remains limited, the company will continue to take mitigating measures.”

He added that this included “prioritizing the production of higher-margin vehicles for the available supply of semiconductors and tightly managing costs to lower the company’s break-even point.”

Thierry Bolloré, Managing Director of JLR, said: “The global semiconductor shortage remains a challenge, but I am happy to see that the actions we have taken are reducing the impact. With strong customer demand and a record backlog, we are well positioned to return to strong financial performance as the semiconductor supply begins to improve.

Source link

About Michael Sample

Check Also

Dacia Duster test: a bunch of cars, for not a lot of money

AAccording to an obviously selfish survey commissioned by Dacia, drivers dislike “unnecessary” technology in their …

Leave a Reply

Your email address will not be published. Required fields are marked *