JLR joins SAIC Motor, China’s biggest automaker, in cutting vehicle output as a result of the automotive semiconductor shortages. SAIC trimmed its wholesale target by about 500,000 cars in the first half, Bloomberg News reported Monday.
Other automakers including Nissan, Hyundai and Volkswagen have warned that shrinking inventory due to the semiconductor dearth will keep squeezing sales this summer.
A shortage of automotive chips that began in December as consumer demand for personal devices soared amid pandemic lockdowns has persisted through 2021, with a factory fire at a major manufacturer in Japan and frigid weather in the U.S. exacerbating the crisis.
The shortages are threatening to slash $110 billion in sales from the car industry, consulting firm AlixPartners forecast in May, and has forced auto manufacturers to overhaul the way they get the electronic components that have become critical to contemporary vehicle design.
