Microchips Deliver Macro Losses For JLR

Sat 21st May 2022

The global shortage of semiconductors has been felt across the industry with most motor manufacturers unable to meet production targets, but now that crisis is showing itself on the balance sheets of the biggest car brands.

Jaguar Land Rover have suffered more than most, having to close their UK factories on more than one occasion over the last 12 months, and despite having plenty of orders, they are not able to meet demand and have posted a pre-tax loss of £455m for the 2021/22 financial year.

It’s a significant loss for the luxury brand, particularly as the Warwickshire based business had made £662m profit in the previous year, which had been hit by pandemic and supply-chain issues.

With sites across the UK, including Solihull, Castle Bromwich, Wolverhampton and Halewood, JLR have significant workforce on these shores, all of whom will have been impacted by a microchip shortage which shows no sign of ending this year, and may even be made worse by recent Covid lockdowns in China.

“The environment remains difficult in light of the global chip shortage and other challenges. However, I’m encouraged by the continuing strong customer demand for our products, highlighted by a record order book,” said JLR CEO, Thierry Bollore.

"And we are continuing to execute our Reimagine strategy with exciting new products like the Defender, new Range Rover and just announced new Range Rover Sport while we are rapidly progressing our plans for a new generation of electric vehicles with our all electric Jaguar strategy and BEV first EMA platform for new Land Rover products."