Jaguar Land Rover cuts UK production on chip shortages: Report

Jaguar Land Rover is reducing vehicle output in the UK through March, as the carmaker prioritises making higher-margin models because of semiconductor shortages, according to a person familiar with the matter.

The loss-making manufacturer, owned by India’s Tata Motors, will cut production of the Range Rover Velar and Jaguar F-Pace models that are made in Solihull, while ramping up output of its most lucrative models, the Range Rover and Range Rover Sport. 

JLR may also reduce production at its Halewood plant where it makes the Evoque and Discovery Sport models, though a final decision hasn’t been made.

“We continue to actively manage the operational patterns of our manufacturing plants whilst the industry experiences ongoing global semiconductor supply chain disruption,” a Jaguar Land Rover spokesman said in an email. 

“Demand for our vehicles remains strong.” The company expects rising deliveries during JLR’s fiscal second half, which runs through March, as new agreements with semiconductor partners take effect. 

JLR doesn’t plan to cut any jobs at its UK plants as a result of the reduced production as it plans to ramp back up when chip supplies normalise, the person said.