Global chip shortage: Jaguar Land Rover loses £9m

Jaguar Land Rover (JLR) lost £9m ($12m) in the last three months of 2021 amid the global computer chip shortage.
The UK carmaker saw its retail sales fall 37.6% compared to a year earlier, as it sold 80,126 vehicles in the quarter to the end of December.
Despite that fall in production, the company saw revenue of £4.7bn, up 22% from the previous quarter.
Manufacturers around the world have been hit hard as they struggle to secure supplies of semiconductors.
"Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles," JLR's chief executive Thierry Bolloré said in a statement.
However, the company also warned that it expects the chip shortage to continue throughout this year but expect supplies to gradually improve.
That helped push JLR's Indian parent company Tata Motors to a 15.16bn rupees (£150m; $203.2m) loss for the period.
JLR also said that its order book has hit a new record high of around 155,000 vehicles, due to strong demand for the new Range Rover.
Chips are vital to modern cars, with a number of features including touchscreen controls, automatic emergency brakes, reversing cameras, fuel efficiency equipment and airbag deployment systems all relying on them.
On Friday, industry figures showed that UK car production last year fell to its lowest level since 1965.
The Society of Motor Manufacturers and Traders said that just under 860,000 new cars left UK factories in 2021.
Production last year was 6.7% lower than in 2020 - and a full 34% below its pre-pandemic level.
The SMMT said the figures were dismal, largely thanks to a global microchip shortage and disruption caused by the coronavirus pandemic.
Carmakers around the world have also been impacted by the chip shortage, along with supply chain disruptions, Covid-19 restrictions and rising prices of raw materials.
Motor industry giants including Toyota, General Motors, Ford, Nissan, Daimler, BMW and Renault, have all been forced to scale back production in recent months as they struggled to secure enough semiconductors.
Source: BBC
Trending Business
Ghana to host landmark Horticulture Expo today to showcase green economy potential
12:16Turkish-Ghana investment forum highlights new trade opportunities, free zones
15:58GIPC Endorses MTN Ghana’s $300 million investment drive
12:52NPA boss appeals to Ghanaians to accept GHC 1 Fuel Levy: “It’s painful but necessary”
12:38GPRTU threatens nationwide strike over GHS1 Energy Sector Levy
04:15Ecobank and ADB executives pay business calls on GCAA
16:32Mahama assures Ghanaians: New energy sector levy won’t trigger immediate fuel price hikes
13:42Seth Terkper to launch book on VAT on June 25
11:31CMG’s Accra-based stations to undergo scheduled maintenance
10:15ADEC Innovations explores KPO investment in Ghana following feasibility study
03:17