The boss of Jaguar Land Rover (JLR) has warned UK production risks being damaged from next month because of supply chain difficulties in coronavirus-hit China.
Dr Ralf Speth said the company had enough parts to complete the manufacturing processes at its UK sites this week and next but warned of shortfalls from March should delays to deliveries persist.
He added: “We have flown parts in suitcases from China to the UK.”
China’s efforts to combat COVID-19 – the medical name for the coronavirus strain – have resulted in factory shutdowns and movement restrictions in the world’s second-largest economy.
That has hit exports of goods to customers globally with Apple among a growing number of companies to acknowledge damage this week.
Dr Speth said JLR’s own factory in China would re-open next week following an extended Lunar New Year closure and admitted sales of the company’s vehicles in the country had ground to a halt.
Coronavirus represents a fresh headache for the company – and wider industry – at a time when it is being forced to invest heavily in electric and autonomous vehicle technology amid efforts to battle climate change.
But there is heavy pressure dragging on that investment as car sales have been falling globally.
Brexit uncertainty has also weighed on UK auto producers.
JLR has blamed several temporary production cuts on fears of Brexit disruption and falling demand.
The company announced earlier this month that it would halt production on selected days over a four-week period from late February at its Castle Bromwich factory in the West Midlands.
It said it would also stop production on some half or full days at its nearby Solihull facility until the end of March.
A month earlier, 500 job losses were announced at its third vehicle production plant at Halewood on Merseyside.
JLR’s most recent sales figures showed a 2.3% decline in the final three months of 2019.
Dr Speth issued the supply chain warning at the launch of a new concept vehicle platform known as Project Vector – a JLR spin-off project which aims to deliver a new “autonomy-ready” city transport solution.
Project Vector’s mobility service pilot is due to begin in Coventry in 2021
The vision is for integration with future smart city infrastructures that could eliminate congestion and accidents.
The pods will be collectively tested on the roads of Coventry in a pilot programme due to begin next year.
Dr Speth said it formed a key part of its Destination Zero commitments.
“Project Vector shows Jaguar Land Rover as a leader in innovation to make our societies safer and healthier, and the environment cleaner,” he said.
“Through this project, we are collaborating with the brightest minds in academia, supply chain and digital services, to create connected, integrated mobility systems – the fundamental building blocks for Destination Zero,” he added.
The mobility service system attached to Project Vector was developed by the National Automotive Innovation Centre at the University of Warwick in Coventry that was formally opened by Prince Charles on Tuesday afternoon.
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