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JLR plans to cut production of some models as chip crisis drags on

A JLR spokesperson confirmed with FE that there will be no change in the guidance given by the senior management regarding production for the October to March period.

JLR plans to cut production of some models as chip crisis drags on
At the conclusion of the September quarter results, JLR CFO Adrian Mardell had indicated that the company is aiming to produce 160,000 units in the second half of the year. JLR claims to be sitting on an order book of 205,000.

British luxury car brands Jaguar and Land Rover are making adjustments at its Solihull plant in the UK which will see some low-margin models making way for more profitable ones on the production lines, though the overall FY23 production guidance remains unchanged.

Production of the Jaguar F-Pace and the Range Rover Velar will be moderated in favour of Range Rover and Range Rover Sport, the two flagship models of the Tata Motors-controlled company. A report from The Guardian stated that the Solihull and Halewood plants would see production cuts between January and the end of March.

The changes to production are made to accommodate the shortage in semiconductors which continue to plague the automotive industry. A source said: “As and when the availability of chips improves, we will increase the production of other models which have been impacted by the production shortfall.”

A JLR spokesperson confirmed with FE that there will be no change in the guidance given by the senior management regarding production for the October to March period.

Also Read: Will be years before chip supply normalises: JLR CEO

“We are standing by the guidance given by senior executives and that production of the second half of the year will be better than the first half,” the spokesperson said.

At the conclusion of the September quarter results, JLR CFO Adrian Mardell had indicated that the company is aiming to produce 160,000 units in the second half of the year. JLR claims to be sitting on an order book of 205,000.

“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 Solihull factory will move from two shifts to one in the parts of the factory that produce the lower-price Range Rover Velar and the Jaguar F-Pace, while adding an extra shift to produce Range Rover body panels. The Halewood plant, in Merseyside, will also drop to one shift. The factory produces the Discovery Sport and the smaller Range Rover Evoque, the report from The Guardian said.

JLR is engaging directly with the chip suppliers and entering into partnership agreements to improve visibility of supply in the near term and support future product programmes. Agreements have been signed with several of the most critical chip suppliers and further agreements are in progress.

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First published on: 26-11-2022 at 01:45:00 am