UK & World

UK car manufacturing has fallen to its lowest since the 1956 Suez crisis

According to official figures, UK car production suddenly plummeted with the worst performance in July since 1956.

The car factory produced just 53,438 motors last month. This is a 37.6% drop in the edge of the cliff compared to the same month last year.

According to industry experts, the global shortage of “pindemic” microchips and the absence of staff are causing a plunge in production.

Overall production in 2021 increased by only 18.3% (or 552,361 units) year-on-year-a decrease of 28.7% compared to pre-pandemic levels in 2019.

Due to poor performance and the effects of the pandemic, the Automobile Manufacturers Association (SMMT) has lowered its 2021 production forecast from 1.05 million to about 950,000. Times report.

Industry groups that collate numbers said the sudden decline must encourage governments to intervene and support.

Mike Hawes, CEO of SMMT, said: “When the self-separation rules are changed, the impact of pingdemic will be lessened, but the global shortage of semiconductors shows little sign of mitigation.”

This number was also the last month to record production at Honda’s plant in Swindon. Production line personnel were closed last month and the factory returned to Japan.

Honda was the fifth largest car producer in the UK before the pandemic, producing about 110,000 Civic hatchbacks annually.

The shortage of chip supply is the biggest burden for producers, and this week it was reported that Jaguar Land Rover suffered from long vehicle delays due to the shortage.

According to the briefing note sent to the leasing company seen by Liverpool Business News, Jaguar Land Rover said it is still accepting quotes and orders, but warned that retailers should be told that delivery will take quite a long time due to “extension of lead time”.

Volkswagen also recently warned that it expects further pressure on car production in the coming months. Toyota said it is in short supply and will cut car production by 40% from September. This happened even though Japanese companies had stockpiled chips for years.

The average new car requires 1,500 microchips.

Mike Hawes of SMMT said: “Government can help by continuing to take Covid measures, increasing competitiveness and reducing energy and business taxes in sectors that are strategically important for achieving net zero.”

For the better news, Hawes added: “More than a quarter of all cars manufactured in July were hybrid or all-electric cars, which means that the UK produced 126,757 of these key products this year.”

UK car manufacturing has fallen to its lowest since the 1956 Suez crisis

Source link UK car manufacturing has fallen to its lowest since the 1956 Suez crisis

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