Jaguar Land Rover Faces Headaches Over Semiconductor Shortage

Add Jaguar Land Rover to the long list of auto manufacturers feeling the pinch of the ongoing semiconductor chip shortage.

The company saw a $12 million loss last quarter as sales fell by about 38 percent and inventory vanished, according to parent corporation Tata Motors. The company blamed the chip shortage.

The shortage is the result of a confluence of events, ignited by the Covid-19 pandemic. Car manufacturers scaled backorders for semiconductor chips at the start of the pandemic, expecting a steep decline in demand. They looked to ramp back up as the pandemic eased and shelter-in-place orders were relaxed, but by that point, chipmakers had shifted to feeding the booming consumer electronics market.

That has left the chips - used in a wide variety of car parts - in short supply. Still, Tata sounded an optimistic note in discussing the future impact of the shortage on production.

"We are seeing an easing of pressure on semiconductor supply and production," Tata Motors Chief Financial Officer P.B. Balaji told Automotive News. "We expect improved production, wholesales in the coming quarter and retails as well. Overall, we expect to see getting back to normalcy in the coming quarter.”

How Car Defects Put People’s Safety at Risk

Meanwhile, Tata and other major car manufacturers are still having a hard time ensuring that the cars they do put on the road are actually safe to drive.

Carmakers recall millions of vehicles around the world each year, citing serious safety defects that pose a threat to everyone on the road. They often announce these recalls long after the vehicles have been sold to unsuspecting buyers.

In 2020, for example, Jaguar said it was recalling nearly 25,000 Land Rover vehicles whose rear spoilers may detach, increasing the risk of a collision. Jaguar has also recalled about 12,000 Range Rover vehicles over tire pressure problems that the company also acknowledged posed a safety hazard.

Fortunately, California car owners do not need to wait for a recall to get defective vehicles fixed.

The California lemon law generally requires car manufacturers to do a wide range of repairs on vehicles while they are under warranty. It also forces the companies to buy back - or replace, in some situations - cars that they cannot or refuse to fix. That includes compensating the owner for the purchase price, as well as financing fees and other costs.

There is no specific number of repair requests or attempts that a person must make before the buyback or replacement requirement kicks in. That is one reason why it is important to consult a seasoned attorney.

Speak with a San Diego Lemon Law Attorney

If you are stuck with a lemon or locked in a dispute with a car manufacturer over repairs, the San Diego lemon law attorneys at Bickel Sannipoli APC can help. 

Call us at (888) 800-1983 or contact us online to speak with a San Diego lemon law attorney.