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.
Sir 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 – – 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.
Sir Ralph told Sky News: “This is an issue for the complete car automotive industry.
“We don’t know how long it will take before the supply chain comes on stream again in China,” he added.
He said JLR’s own factory in China would re-open next week following an extended Lunar New Year closure but admitted parts were only secure for another week.
He admitted sales of the company 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 h alf 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 2021.
Sir Ralph 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.
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 program 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 Center at the University of Warwick in Coventry that was formally opened by Prince Charles on Tuesday afternoon.
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