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CHIP SHORTAGE NEWS Global chip shortage 2023 - updates in January
How are companies responding to the chip shortage and what are policymakers commenting? Here we sum up the most important events related to the global shortage of microchips.
JLR finances recover as chip shortage eases
Jaguar Land Rover has announced that it achieved positive free cash flow and profitability in fiscal Q3 as semiconductor supply challenges eased. Revenue for the company was up by 28 % year-on-year to £6 billion, reflecting a strong model mix and pricing as the production increase of the new Range Rover and Ranger Rover Sport continued. 27,456 units were wholesaled in the quarter, up from 13,537 in Q2.
The higher profitability reflected increased wholesale volume with favorable mix, pricing, and foreign exchange offset partially by higher inflation and supplier claims largely related to constrained volume. Profit after tax in the quarter was £261 million, up from a loss of £67 million in Q3 2022 while free cash flow was £490 million in Q3 2022, up from £164 million in Q3 2022.
“Although there continue to be supply chain and other macro risks, our guidance for the full year remains unchanged. Positive profits and free cash flow in Q4 FY23 on wholesales of 80,000 or more are expected to achieve breakeven cash flow and a positive EBIT margin for the full year,” JLR said in a statement.
Ford executive expects chip shortage to ease in 2023
The chip shortage has caused problems for the automotive sector for more than two years now, and while it has been joined by other supply chain problems, it’s still one of the biggest concerns for automakers. Ford has removed several non-critical features from its latest vehicles as a temporary solution to keep assembly lines moving, along with storing thousands of unfinished vehicles in the hopes that they can be completed when chip supplies improve, which has been a controversial move among consumers.