Jaguar Land Rover output at two UK plants hit by chips shortage


FILE PHOTO: A car hangs on the wall of Jaguar's Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples

LONDON (Reuters) -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 semi-conductors, 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 26th April," 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 automakers. Trade flows have also been affected.

On Wednesday, carmaker 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."

(Reporting by Costas Pitas; Editing by Kate Holton)

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