The Strategist

Jaguar Land Rover to suspend production at two UK plants due to chip shortages

04/23/2021 - 04:08

According to The Guardian, British car maker Jaguar Land Rover will halt production at two of its leading UK plants due to a shortage of microprocessors needed for in-car computers and other systems.

Josh Hallett
Josh Hallett
The company confirmed to the publication that production would be halted "for a limited period of time" at its plants in Castle Bromwich in the West Midlands and Halewood in Merseyside. The Guardian expects the interruption to last at least a week.

A day earlier Renault of France said the car industry was "at the peak" of a crisis because of a shortage of car chips and warned that the supply disruption could last at least into the summer.

The shortage of chips for the car industry became known at the beginning of the year. The shortage was caused by a number of reasons, including a rise in demand for microprocessors last year in the face of remote working and increased demand for computers and laptops. 

In addition, the car industry is recovering from last year's recession faster than expected, and the chips used in cars are often more complex and specialized than those used in smartphones and other similar gadgets, so microprocessor makers need more time and money to cover the needs of the auto industry. A global chip shortage has already led to the EU, US and other authorities taking up the issue.