In its latest sign of the difficulties facing the global car industry during the Jaguar Land Rover epidemic, production at its two main UK factories is to be temporarily shut down due to a shortage of computer chips.
The company, which has the UK’s largest automotive manufacturing operations, confirmed to the Guardian that Mercedes will have a “limited period of non-production” at plants in the West Midlands and Hailwood starting on Monday.
It is understood that the shutdown is scheduled to last for at least a week, although the company will continue to monitor its chip supply before re-commissioning.
The shutdown underscores the carmaker’s struggles worldwide to secure its supply of computer chips, also known as semiconductors, amid a global shortage that has led to Microsoft and Sony, Xbox and Playstation game console manufacturers, The phone maker has influenced Samsung. And cryptocurrency “miners” who need computer chips to solve the puzzles that earn bitcoin and other digital assets.
The automotive industry is used to run lean “bus-in-time” supply chains that reduce the amount of cash tied up in factory warehouses. However, the global nature of chip shortages has put car manufacturers around the world under stress as they compete directly with tech companies for supplies.
“The automotive industry doesn’t matter much in the semiconductors industry,” another carmaker complained to a source.
On Wednesday, Renault, a French carmaker, said the industry was at the peak of difficulties in achieving chip supply, but warnings could continue for months into the summer.
JLR is still considering whether employees in the affected factories will be placed on the government’s fictitious scheme, which will pay up to 80% of the employees’ salaries if they are unable to work due to Kovid-19. The Furloff plan is set to run until the end of September.
Models affected by the temporary closure will be Jaguar XE and XF executive cars and F-Type sports cars, all built in Castle Bromwich, and Havood’s Discovery Sport and Range Rover Evoque.
Manufacturing will continue at JLR’s Solihull plant, which makes various Range Rover models and Jaguar F-Pace SUVs. JLR’s international factory in Slovakia – where its new defender is made – Brazil and China are still unaffected.
A JLR spokesperson said: “Like other automotive manufacturers, we are currently facing some Kovid-19 supply chain disruptions, including global availability of semiconductors, to meet our production schedule and global demand for some of our Is affecting the ability of. ” Vehicle.
“We are working closely with affected suppliers to resolve problems and minimize impact on customer orders wherever possible.”