Jaguar Land Rover will overhaul the supply chain to avoid stopping production due to lack of core

According to foreign media reports, Jaguar Land Rover will overhaul its supply chain and negotiate directly with chipmakers to avoid shutting down the plant again due to lack of core.

Thierry Boller é, chief executive of Jaguar Land Rover, said the company would tighten control over key components such as microprocessors and batteries as more products such as electric drives are produced internally. "this is a real storm. I really don't think the core shortage problem will improve in a few months, and the crisis may last much longer than that. It was too late for us to take action to deal with and control the chip shortage. "

Part of the problem with the core crisis is the predictability of the supply chain. Jaguar Land Rover will conclude contracts directly with its chip suppliers in the future. "We will need to work with chip suppliers, not only through primary and secondary suppliers, but also directly with them." Jaguar Land Rover will produce electric drives internally to make the business of key components more "vertically integrated".

The company is also "exploring all possibilities" about whether to make or purchase batteries for its electric cars. Bolloré said buying batteries from a UK factory was "the best option for us". The company has selected a chemical in battery technology and is discussing the site with a number of battery manufacturers. A final decision is expected to be made within the next month. Earlier, Boll é said in his first media interview since taking office in September that Jaguar Land Rover was about to announce the purchase of electric car batteries from the UK.

Carmakers have long outsourced most of their car production to suppliers. But since the chip shortage crisis cost the auto industry millions of cars, carmakers have begun to reschedule their supply networks.

Bolloré 's job is to turn Jaguar Land Rover around. Jaguar Land Rover has serious problems with technology and product overlap and was defeated by Nissan last year as the UK's largest carmaker. In March, Jaguar Land Rover announced a strategic change, including reinventing the Jaguar brand as an all-electric luxury car player from 2025 and abandoning traditional engines by 2025.

Executives say the morale of Bolloré has been boosted since he took office and that his new strategy has been welcomed within the company. Boll é, a long-time right-hand man to Carlos Ghosn, says the company still has a lot of room to reduce costs in the future. His new plan cancels Jaguar Land Rover's previous sales target of 1 million vehicles, and the company is "more concerned about value than sales." Last year, the company sold only 425000 cars.