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Jaguar Land Rover is once again grappling with disruption, as production at one of its key UK facilities is set to pause following a fire at a supplier site in Norway. The interruption will affect output of its flagship Range Rover and Range Rover Sport vehicles at the Solihull plant, with operations halted until April 8. This latest grievance represents a significant setback for the automaker in a two year period punctuated by disruption.
In a statement, the company acknowledged “a part supply challenge with a supplier” and said: “We are working closely with that supplier to resolve the issue as quickly as possible and minimise an impact on our clients or our operations.” Despite reassurances, the halt underscores the fragility of global supply chains that the automotive sector continues to contend with.
This latest blow comes in the aftermath of last year’s cyber attack, which forced the company to shut down all its UK plants for a month, resulting in losses of £260mn. The incident strained a vast supplier network employing around 200,000 people, with knock-on effects including delayed payments and reduced orders.
The financial implications have been stark with the company reporting a pre-tax loss of £310mn in the final quarter of last year, a sharp reversal from the £523mn profit recorded during the same period a year earlier. Revenues also fell significantly, dropping 39 per cent to £4.5bn.
Suppliers are now bracing for further pressure. One described the latest incident as “totally unexpected” and warned it could result in “a crucial loss of revenue, putting jobs at risk”.
While the company insists production will resume as planned, concerns persist about the cumulative toll of repeated disruptions.
As one industry expert put it, “Suppliers were able to weather the first punch from the cyber attack but another two weeks, I fear, could now be the knockout for some.”
The supplier fire and resulting closures adds to the challenges facing chief executive PB Balaji, who is attempting to steer the company back on course following a period of difficulty. Plans include repositioning Jaguar as an all-electric luxury brand, following a divisive, ultra-modern marketing campaign and expanding into the U.S. market.
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