Jaguar Land RoverThe Tata Motors-owned company is cutting production at its UK factories till March 2023 as it faces chip shortage issues, said a report on Friday.
The carmaker, whose CEO Thierry Bollore announced his resignation last week, has decided to cut production at factories in Solihull and Halewood between the end of January and March as it tries to prioritize its most profitable models. does,” reported the Guardian.
JLR and other carmakers have been grappling with a shortage of semiconductors since early 2021. JLR’s performance is crucial for Tata Motors as it contributes around 60% to the latter’s revenue from operations.
JLR, the UK’s biggest carmaker, reported a record order book of more than 205,000 cars this November, but chip shortages have complicated its efforts to ramp up production of new versions of its Range Rover and Range Rover Sport. both of which are made in Solihull, and its Defender, which is made in Slovakia,” reported the Guardian.
JLR said in a statement after the Guardian story was published, “We continue to actively manage the operating patterns of our manufacturing plants while the industry experiences #semiconductor supply disruptions. Demand remains strong, year The performance is expected to continue to improve in the second half.
JLR last year announced an electrification strategy under which all Jaguar cars will be fully electric by 2024 and an electric option will be introduced across its portfolio including Land Rover.
JLR has been loss-making for the past 18 months, but in the company’s most recent financial results presentation this November, Bolloré said he believed semiconductor supply would improve in the coming months.
JLR appointed former Renault boss Bollor as CEO in 2020, tasking him with returning Britain’s biggest carmaker to profit after it took a big hit from the COVID-19 pandemic. JLR said his resignation is effective from December 31.
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