Jaguar Land Rover shuts UK plants due to chips shortage

Car makers around the world have had to halt production lines as semiconductor supply hits industry

FILE - In this file photo dated Sunday, April 26, 2020, the Jaguar company logo is shown on the grille of an unsold 2020 F-Pace sports-utility vehicle at a Jaguar dealership in Littleton, USA.  The British luxury car brand Jaguar Land Rover said Thursday April 22, 2021, it's suspending production at two U.K. factories, becoming the latest automaker to fall victim to a global shortage of microchips.(AP Photo/David Zalubowski, FILE)

Output at two of Jaguar Land Rover's (JLR) British car factories will be temporarily halted from Monday, due to Covid-19 supply chain disruption, including a lack of semiconductors, the firm said on Thursday.

"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, April 26," the Tata Motors-owned company said.

The Covid-19 pandemic has driven up demand for semiconductor chips for use in electronics like computers, as people worked from home, and suppliers are struggling to adjust, hitting output at many car makers. Trade flows have also been affected.

On Wednesday,  Stellantis said it would replace digital speedometers with more old-fashioned analogue ones in one of its Peugeot models, as the fallout continues.

Renault's finance chief said on Thursday that car production fell by tens of thousands of vehicles in the first quarter as a result of the shortage.

Output at JLR's third British car factory in Solihull, central England, will continue, the company said.

"We are working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible."