Jaguar Land Rover, Daimler production scaled back due to global chip shortage

Jaguar Land Rover, Daimler production scaled back due to global chip shortage [ad_1]

2020 Land Rover Defender

Source: Land Rover

LONDON – The global chip shortage is continuous to wreak havoc at a few of the world’s greatest carmakers.

Britain’s Jaguar Land Rover introduced Thursday that it has been compelled to cease automotive production for a “limited period” at its Castle Bromwich and Halewood manufacturing crops in England because of the chip shortage, which has been happening for a number of months now.

“Like other automotive manufacturers, we are currently experiencing some Covid-19 supply chain disruption, including the global availability of semi-conductors, which is having an impact on our production schedules and our ability to meet global demand for some of our vehicles,” a spokesperson instructed CNBC.

They added: “We are working closely with affected suppliers to resolve the issues and minimize the impact on customer orders wherever possible.”

The Coventry-headquartered agency — which produces automobiles like the favored Range Rover Evoque, the long-lasting Land Rover Defender, and the Jaguar F-Pace SUV — stated production will proceed at its Solihull plant close to Birmingham whereas its different factories are out of motion.

Jaguar Land Rover’s announcement comes simply two months after the company announced it was going to minimize 2,000 non-factory jobs.

It additionally comes a day after Mercedes-maker Daimler said it’s chopping the hours of up to 18,500 staff and pausing production at two crops in Germany. Daimler stated the pause will start on Friday and final for a minimum of per week.

“Currently, there is a worldwide supply shortage of certain semiconductor components,” a spokesperson reportedly instructed Reuters. “We continue to play things by ear.”

“The situation is volatile, so it is not possible to make a forecast about the impact,” they added.

Elsewhere in Europe, French automotive large Renault said Thursday that its gross sales in the latest quarter had been hit by the semiconductor shortage.

In a bid to mitigate the affect, the corporate has pledged to give attention to its most worthwhile fashions and improve costs.

Meanwhile, Sweden’s Volvo said Thursday that it anticipates extra danger from the “unstable” chip provide chain. The automotive agency has already been compelled to halt truck production and idle crops.

“The global supply chain for semiconductors as well as for other components remains very unstable and the uncertainty about the development is high,” Chief Executive Officer Martin Lundstedt stated in Volvo’s first-quarter report. “We maintain our readiness to increase production when possible.”

Shares of Renault had been down virtually 2% throughout Thursday afternoon buying and selling in Paris, whereas Daimler was down round 1% on Frankfurt’s most important market. Volvo was up round 2%.

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