The ongoing semiconductor shortage has led to the worst car production figures in the UK since 1956, new data has revealed…
Shortages Cause Production Figures to Collapse
The output of the UK’s car industry declined by a staggering 37.6% in July, according to new figures. For perspective, that means it experienced its worst July since 1956. The figures, compiled by the Society of Motor Manufacturers and Traders (SMMT), reveal the impact on the ongoing chip, or semiconductor, shortages; not to mention other supply-chain issues and staff absences attributed to the so-called ‘pingdemic’.
In terms of the UK market, production was down by 38.7% to just 8,233 vehicles. For export, the figure fell by 37.4% to 45,205 vehicles. The decline has led to commentators stressing the urgent situation that the nation’s automotive industry has found itself in; with some looking to the government for additional support.
‘Extremely Tough Conditions’
Mikes Hawes, chief executive of the SMMT, has said that the industry is facing ‘extremely tough conditions’. He explained, “the UK automotive industry is doing what it can to keep production lines going. Testament to the adaptability of its workforce and manufacturing processes. But Government can help by continuing the supportive Covid measures currently in place; and boosting our competitiveness with a reduction in energy levies and business rates for a sector that is strategically important in delivering net zero”.
It’s not all bad news, however, as 26% of all the cars made in July were either BEVs or hybrids; a sure sign that the industry is rapidly working towards overall electrification. Meryem Brassington, electrification propositions lead at Lex Autolease, welcomed this development. She explained, “it’s encouraging to see the production of hybrid and full electric vehicles continue to show no signs of slowing down”. She continued, “if we’re serious about leading the EV charge, then policy makers and manufacturers must continue to work together to accelerate the UK’s electrification plans; and ensure that the Road to Zero remains at the top of the agenda”.
More Than A Quarter Of Fleet Managers Don’t Understand EVs – https://autoservefleet.co.uk/latest-news/more-than-a-quarter-of-fleet-managers-don-t-understand-evs/
Drink-Driving Deaths Lead To Calls For Lower Limit – https://autoserve.co.uk/motoring-news/drink-driving-deaths-lead-to-calls-for-lower-limit/
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