RE: Semiconductor shortage triggers JLR shutdown

RE: Semiconductor shortage triggers JLR shutdown

Thursday 22nd April 2021

Semiconductor shortage triggers JLR shutdown

Production at Halewood and Castle Bromwich to pause for a week due to supply chain problems



Jaguar Land Rover has become the latest car manufacturer forced to halt production at its factories due to the global shortage of semiconductor computer chips. The British firm will cease work at its Halewood and Castle Bromwich plants for at least seven days, in response to a supply shortage of the wafer-thin components, which help to run everything from infotainment systems to driver assistance technology. Meaning they are as essential to modern cars as the oily bits. 

"Like other automotive manufacturers, we're currently experiencing some Covid-19 supply-chain disruption, including the global availability of semiconductors, which is having an impact on our production schedules and our ability to meet global demand for some of our vehicles,” JLR said in a statement. "As a result, we've 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 26 April.”

While manufacturing will continue as normal at JLR’s Solihull plant, where the Range Rover, F-Pace and Velar are made, the temporary halting of lines at its two sister sites will significantly reduce output for the firm’s other models. Land Rover’s Range Rover Evoque and Discovery Sport are made at Halewood, while Jaguar’s XE, XF and F-Type are made at Castle Bromwich. JLR said it is “working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible,” but it seems likely that some buyers will have to wait a little longer than expected for their new cars.


This isn’t just a JLR problem, of course, but one that’s triggered an industry wide impact thanks to the recent reduction in car sales due to the pandemic, which coincided with a growing demand for consumer electronics as online habits changed in a world forced to work from home. Car manufacturers have found themselves at the back of the queue as the producers of semi conductors have favoured much larger orders from the likes of Apple. 

Some experts estimate that despite a quick bounce back in demand from consumers, 2021 global car production could be down by almost three-quarters of a million units due to the semiconductor issue alone. Expect a lot of internal re-thinking when it comes to supply chain management as a result, something Tesla in particular was forced to do when it suffered its own chip supply-related issues last year.

As you might expect, it’s a big deal for the wider tech world as well, with the semiconductor manufacturing industry worth $500 billion alone. Given the amount of time it requires to standup production, there’s no easy fix to the supply problem, either. JLR, like many of the world's volume car makers, has been forced to resort to patience and hugely costly pauses instead. 





Author
Discussion

BFleming

Original Poster:

3,606 posts

143 months

Thursday 22nd April 2021
quotequote all
We have been quoted a year for some products currently. They went from a being in stock to 8 weeks to a year in short succession back in February. Not good for any business.

Fink-Nottle

388 posts

42 months

Thursday 22nd April 2021
quotequote all
Good grief. I recall reading last week that because of the shortage Peugeot will be fitting analog instruments to their 308s.

Dave Hedgehog

14,550 posts

204 months

Thursday 22nd April 2021
quotequote all
motor industry thinks its got it bad ...

us gamers have been waiting for 30 series graphics cards since september !!!

gave up on a PS5

CS Garth

2,860 posts

105 months

Thursday 22nd April 2021
quotequote all
Is there an overall shortage of semi conductors or are those being made being diverted to the most profitable sales channels ie electronics? Or both?

wab172uk

2,005 posts

227 months

Thursday 22nd April 2021
quotequote all
Global Steel shortages will soon see the UK construction industry (and others) grid to a halt due to lack of raw materials.

rare6499

656 posts

139 months

Thursday 22nd April 2021
quotequote all
Fink-Nottle said:
Good grief. I recall reading last week that because of the shortage Peugeot will be fitting analog instruments to their 308s.
One positive to come out of this.

Adrian W

13,870 posts

228 months

Thursday 22nd April 2021
quotequote all
I work in the electronics industry, the main reason for the shortages is that the west has allowed the situation where most of the worlds silicon wafer fabrication is done in Taiwan and Korea, the two largest being TSMC and Samsung, demand has increased but they are now protecting their own domestic markets and parts to the west are on allocation. this situation should never had been allowed to happen, the Americans have woken up and are building fabs but this will take years, to compound it Renesas another large manufacturer has had a huge fire wiping out their production.

Buying everything from China etc is driven by greed and is incredibly short sighted, imagine if there was a war, we are not self sufficient for anything.

Edited by Adrian W on Thursday 22 April 14:31

anonymous-user

54 months

Thursday 22nd April 2021
quotequote all
rare6499 said:
Fink-Nottle said:
Good grief. I recall reading last week that because of the shortage Peugeot will be fitting analog instruments to their 308s.
One positive to come out of this.
Exactly, one less thing to go wrong. I guess the JLR shut down also means the AA and RAC will be less busy.

ch37

10,642 posts

221 months

Thursday 22nd April 2021
quotequote all
Dave Hedgehog said:
motor industry thinks its got it bad ...

us gamers have been waiting for 30 series graphics cards since september !!!

gave up on a PS5
I bought a 20 series card in August as I couldn't be bothered to wait, £450. I've just moved to a Macbook so sold the card, £650!!!! And that's for an 'old' card, absolute madness.

Fetchez la vache

5,572 posts

214 months

Thursday 22nd April 2021
quotequote all
If this means manufacturers stop including stupid touchscreens that are dangerous when on the move, then good tbh.
That way they may actually think about what functions people want rather than just including it anyway as they can in yet another layer of bloody menus...

TrivsTom

129 posts

167 months

Thursday 22nd April 2021
quotequote all
I wondered why work was quiet..
I customs clear the aluminium which goes into JLR and they haven’t been taking much out of the warehouse this week!

WonkeyDonkey

2,340 posts

103 months

Thursday 22nd April 2021
quotequote all
I thought they hadn't been back since Easter. I know production for F-Pace and Velar has been stopped for the past 2 weeks.

Assumed it was the same for Castle Brom and Halewood. Presumably they're diverting all their supply for the Range Rover / Sport, imagine they are the most profitable cars in their portfolio by miles.

Edited by WonkeyDonkey on Thursday 22 April 15:29

BFleming

Original Poster:

3,606 posts

143 months

Thursday 22nd April 2021
quotequote all
Fetchez la vache said:
If this means manufacturers stop including stupid touchscreens that are dangerous when on the move, then good tbh.
Some temporary supply chain issues aren't going to influence the future of ergonomics, much to your disappointment; they're going to slow down production until the components are available again.

Sandpit Steve

10,037 posts

74 months

Thursday 22nd April 2021
quotequote all
Dave Hedgehog said:
motor industry thinks its got it bad ...

us gamers have been waiting for 30 series graphics cards since september !!!

gave up on a PS5
Yup, and the high-end stuff is seen as a priority by the manufacturers, as opposed to the low-end, almost commodity stuff that’s used in most automotive applications.

When people are waiting six months for PS5s and 30xx graphics cards, the world’s carmakers - who cancelled huge orders last year - are at the back of the queue.

Maybe this will be the point at which Western manufacturing nations finally understand the need for some local chip manufacturing capability?

Chris32345

2,086 posts

62 months

Thursday 22nd April 2021
quotequote all
wab172uk said:
Global Steel shortages will soon see the UK construction industry (and others) grid to a halt due to lack of raw materials.
At the same time we are allowing all out own steel foundry's to close down

Colonel D

628 posts

72 months

Thursday 22nd April 2021
quotequote all
Dave Hedgehog said:
motor industry thinks its got it bad ...

us gamers have been waiting for 30 series graphics cards since september !!!

gave up on a PS5
The 30 series doesn't exist, never has, they've been lying to us from day one... To think I was foolish enough to believe I'd be able to pick up a 3060 or 70 soon after release.

ziontrain

284 posts

121 months

Thursday 22nd April 2021
quotequote all
Not just JLR either, enquired about a factory order for a Focus ST and was quoted a Sep-Dec delivery time...

rampageturke

2,622 posts

162 months

Thursday 22nd April 2021
quotequote all
Sandpit Steve said:
Maybe this will be the point at which Western manufacturing nations finally understand the need for some local chip manufacturing capability?
it's already underway, but it takes a good 2-3 years to actually get a fab up and moving if it was approved now. America being first in talks right now

Fink-Nottle

388 posts

42 months

Thursday 22nd April 2021
quotequote all
Adrian W said:
Buying everything from China etc is driven by greed and is incredibly short sighted, imagine if there was a war, we are not self sufficient for anything.

Edited by Adrian W on Thursday 22 April 14:31
Especially not regarding rare earths for EV batteries, or indeed the batteries themselves.

The day China invades Taiwan is the day to buy an old rustheap with analogue everything.

blueg33

35,890 posts

224 months

Thursday 22nd April 2021
quotequote all
Chris32345 said:
wab172uk said:
Global Steel shortages will soon see the UK construction industry (and others) grid to a halt due to lack of raw materials.
At the same time we are allowing all out own steel foundry's to close down
We have seen a 20% price hike on the imported steel we use. In discussion with Tata to source it from the UK, but they need to tool up and modify their production facilities - lead time is years