Jaguar Land Rover Could Be Facing Another Crisis

Industry News / Comments

This time, it's not the company's fault.

Jaguar Land Rover continues to emerge from challenging financial times that nearly killed it not long ago. A significant lineup overhaul will soon be underway for Jaguar that is set to become an EV-only brand starting in 2025. Land Rover will continue doing what it does best: SUVs. The reborn Land Rover Defender continues to be in high demand, as does the rest of the lineup. And therein lies the problem.

The ongoing semiconductor chip shortage is striking JLR in such a harsh and unforgiving way, Automotive News Europe reports, that any financial gains it's made over the past year or so could potentially be lost. As global chip supplies continue to dwindle, JLR has concluded new vehicle deliveries are 50 percent worse than predicted in the second business quarter of this year.

2020-2022 Land Rover Defender Front Angle View Land Rover
2020-2022 Land Rover Range Rover Evoque Front View Driving Land Rover
2021-2022 Land Rover Discovery Sport Front View Driving Land Rover

"The chip shortage is presently very dynamic and difficult to forecast," JLR said in a statement in coordination with its parent company, Tata Motors. "The broader underlying structural capacity issues will only be resolved as supplier investment in new capacities comes online over the next 12 to 18 months, and so we expect some level of shortages will continue through to the end of the year and beyond."

JLR has no choice but to cut vehicle output because of a lack of chips. And because it's not anywhere near in size and scope as other automakers, such as GM, Ford, Volkswagen, and Stellantis, JLR doesn't have the capability to shift focus from less popular models to more profitable ones.

2021-2022 Land Rover Discovery Frontal Aspect Land Rover
Front Angle View Land Rover
2019-2021 Land Rover Range Rover Hybrid Front View Driving Land Rover
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That's exactly what GM has been doing, specifically by idling Camaro production in favor of more trucks and SUVs. High demand for those Land Rovers and Range Rovers is meaningless unless there are actually new vehicles to build and sell.

The chip shortage began last December and could possibly eliminate upwards of $110 billion in auto industry sales this year alone. Ramping up chip production takes time and it'll likely be well into next year until automakers receive relief. Let's hope JLR can keep up with its recovery until then.

2021-2022 Jaguar F-Type Coupe Frontal Aspect Jaguar
Front Angle View Jaguar
Side Angle Driving Jaguar
Source Credits: Automotive News Europe

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2020-2022 Land Rover Defender Front View Driving
2019-2021 Land Rover Range Rover Hybrid Front View Driving
2020-2022 Land Rover Range Rover Evoque Front View Driving
2020-2022 Land Rover Defender Front Angle View
2021-2022 Jaguar F-Type Coupe Frontal Aspect
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