Jaguar Land Rover to suspend output due to chip shortage

Technology

Jaguar Land Rover (JLR) is shutting its two main car factories temporarily due to a shortage of computer chips.

JLR said there would be a “limited period” of closure at its Halewood and castle Bromwich sites from Monday.

A mixture of strong demand and Covid shutdowns at chipmakers has also hit phone, TV and video games companies.

“We have adjusted production schedules for certain vehicles which means that our Castle Bromwich and Halewood manufacturing plants will be operating a limited period of non-production from Monday 26th April,” said Tata-owned JLR in a statement.

“We are working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible.” Production at a third factory, at Solihull, will continue.

The Castle Bromwich factory makes the Jaguar XE, XF and F-Type models, and employs about 1,900 people. Halewood makes the Range Rover, Evoque and the Land Rover Discovery Sport, and has about 4,000 workers.

The Covid-19 pandemic has driven up demand for semiconductor chips for use on electronics such as computers, as people worked from home, and suppliers are struggling to adjust.

There has also been a fire at a Japanese company, part of Renesas Electronics, one of the world’s biggest makers of semiconductors fort he

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