Land Rover Faces Shortage Following Production Shutdown in U.K.
As a result of Brexit concerns, factories temporarily closed, leaving the automaker short on supply of the popular Land Rover.
Jaguar Land Rover (JLR) has been facing more than a little stress over the past few years. With the looming threat of Brexit, the U.K.-based automaker has had to consider the many implications and consequences it will have, and how production and distribution will be effected. Now, the threat has become more immediate.
All 4 of Jaguar Land Rover’s British factories shut down for a week, starting on November 4. The shutdown was decided in September as a means to alleviate the likely chaos had the U.K. broke with the European Union.
Should a no-deal Brexit pass, it will cause disruption if not cessation of exporting, importing, and access to the parts and supply chain. Jaguar, alongside BMW and Toyota chose to temporarily shut down instead. “We cannot think about it, we just have to do it,” CEO Ralf Speth told the press at the time about the closure. “I need 20 million parts a day and that means I have to make commitments to my suppliers, I have to have every and each part available and I have to have it just in time.”
While the EU ultimately extended the Brexit deadline date to January 31, the shutdown went on as scheduled. With production of the Land Rover line disrupted, JLR have subsequently fallen short of their projected output by about 12,000 vehicles.
Jaguar Land Rover will build just under of 120,000 cars in the current quarter. Adrian Mardell, JLR chief financial officer, recently reported the losses on an earnings call, according to Automotive News Europe. “That’s much less than we expect to retail in the quarter.” Mardell added that this quarter’s inventory “will be very, very thin.”
Additionally, Mardell warned that the company is not yet out of the woods, and expects “further disturbance” in the following quarter.
Of course, the shortage is especially inopportune as Jaguar has seen a marked boost in sales in China, as well as a thriving demand in America.
But, this shortage should hopefully be a temporary glitch that the company can sort out. It isn’t their first time at this particular rodeo, as earlier this year JLR stopped production in April for a week, also in anticipation of possible Brexit anxiety.
As for what will happen should Brexit occur, it is going to be rough roads ahead. Like many in the automotive industry, Speth has warned the wrong Brexit deal will be detrimental to the U.K. car industry, costing “tens of thousands” of jobs. As for the ripple effect this would have across the globe; we can only wonder, worry, and hope contingency plans have been put in place.
Photos: Jaguar Land Rover
