Photo: YouTube Screenshot/ Land Rover
The global automobile industry struggled with supply chain issues over the last quarter of 2021, but the UK seems to have taken the brunt of it. SMMT (Society of Motor Manufacturers and Traders) reported the country's production figures were the lowest in 65 years. Jaguar Land Rover (JLR) recorded a £9 million loss in the last three months of 2021, siting global microchip shortage issues.
The British automaker's sales fell 37.6% compared to 2020, selling 80,126 vehicles in the last quarter to the end of 2021. Surprisingly, the luxury car manufacturer also saw revenue of £4.7 billion, 22% higher than in 2020. Tata Motors, JLR's Indian parent company, recorded a total loss of £150 million.
JLR wasn't the only manufacturer that faced losses in the UK. Japanese automaker Honda closed its Swindon manufacturing unit that specialized in Civic production. Before shutting down the plant, the Japanese giant was the fifth-largest manufacturer in the UK.
According to JLR's chief executive Thierry Bolloré, even though semiconductor issues affected sales in the first quarter of 2022, there's still a strong market demand for their products, underlining the desirability of their vehicles.
The British luxury vehicle manufacturer still warned that it expects to face chip shortages throughout the year but expects supplies to improve gradually, the BBC reported.
Other manufacturers around the world are also facing microchip shortages, along with supply chain issues, a global health crisis affecting production and workforce, and ever-rising prices of raw materials.
GM, Toyota, Ford, BMW, Nissan, Daimler, and Renault have all scaled back their production plans in recent months, struggling to secure the elusive semiconductors.
As technology advances, microchips have spread from computers into mobility. As a result, the demand for chips continues to outstrip the supply, and auto manufacturers are not the only industries feeling the pinch.
Microchips are essential when it comes to the production of modern cars. Engine management systems, sensors, fuel efficiency systems, and infotainment features rely on them. A single model unit requires about 500 to 1,500 chips, depending on the part's complexity.
JLR wasn't the only manufacturer that faced losses in the UK. Japanese automaker Honda closed its Swindon manufacturing unit that specialized in Civic production. Before shutting down the plant, the Japanese giant was the fifth-largest manufacturer in the UK.
According to JLR's chief executive Thierry Bolloré, even though semiconductor issues affected sales in the first quarter of 2022, there's still a strong market demand for their products, underlining the desirability of their vehicles.
The British luxury vehicle manufacturer still warned that it expects to face chip shortages throughout the year but expects supplies to improve gradually, the BBC reported.
Other manufacturers around the world are also facing microchip shortages, along with supply chain issues, a global health crisis affecting production and workforce, and ever-rising prices of raw materials.
GM, Toyota, Ford, BMW, Nissan, Daimler, and Renault have all scaled back their production plans in recent months, struggling to secure the elusive semiconductors.
As technology advances, microchips have spread from computers into mobility. As a result, the demand for chips continues to outstrip the supply, and auto manufacturers are not the only industries feeling the pinch.
Microchips are essential when it comes to the production of modern cars. Engine management systems, sensors, fuel efficiency systems, and infotainment features rely on them. A single model unit requires about 500 to 1,500 chips, depending on the part's complexity.
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