Tata-owned Jaguar Land Rover (JLR) has warned that its UK production risks being hit from next month because of supply-chain difficulties due to the disruption of parts supply from shutdown factories in coronavirus-hit China.
Chief executive 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.
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According to Sky News he added: "We have flown parts in suitcases from China to the UK."
Speth also said JLR's own factory in China would re-open next week following an extended New Year shutdown. He also admitted sales of the company's vehicles in the country had ground to a halt.
The emerging problems for some manufacturers outside of China reflect both the long-run internationalisation of parts supply chains and the predominance of 'just-in-time' lean manufacturing processes that keep inventory low.
Fiat-Chrysler (FCA) has temporarily halted production at its Serbian plant due to a shortage of parts supplied by factories in China.
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By GlobalData
