Jaguar Land Rover (JLR) is to temporarily halt production at two of its main UK factories due to a global shortage of computer chips. The shutdown will affect the Castle Bromwich plant in the West Midlands and the Halewood plant on Merseyside, which together employ nearly 6,000 workers, starting Monday for at least a week.
The company, owned by Indian conglomerate Tata, said it would use a 'limited period of non-production' to assess its chip supplies before deciding on a reopening date. The move highlights the broader difficulties facing the global automotive industry, which has been competing with tech giants for semiconductors as demand rebounded faster than expected after the pandemic.
The affected models include the Jaguar XE, XF and F-Type at Castle Bromwich, and the Discovery Sport and Range Rover Evoque at Halewood. JLR's Solihull plant, which makes Range Rover models and the Jaguar F-Pace, will continue production, as will its overseas factories in Slovakia, Brazil and China.
The chip shortage has compounded challenges for JLR's new chief executive, Thierry Bolloré, who is pushing to electrify the Jaguar brand by 2025. The company is still deciding whether to furlough workers at the affected plants, using the government scheme that runs until the end of September.
