‘Worst October since 1956’: Global COVID Woes Slow UK Auto Production | Economic news


The UK auto industry has warned of the challenges of staying operational after producing just under 65,000 cars last month – the weakest October since 1956.

The Society of Motor Manufacturers and Traders (SMMT) blamed the deplorable total on “production shutdowns” linked to the semiconductor shortage around the world, adding that a resurgence of the coronavirus pandemic could make matters worse in the months future.

According to consulting firm AlixPartners, the chip shortage is expected to cost the global auto industry $ 60 billion (£ 45 billion) by lost sales This year.

Swindon Honda plant closure in summer contributed to lower volumes

Lack of crisps – a result of COVID-19[female[feminine a disruption that left supply behind high demand – hampered sectors of the industrial economy, from game console producers to defense.

It has also hampered the transition to the future of the electric car – demanded by this country’s government ahead of the impending ban on the sale of new gasoline and diesel-powered vehicles from 2030.

Production problems have also contributed to fueling the country intensification of the inflation rate.

Indeed, the lack of new vehicles has driven up prices across the automotive sector, with the value of used cars increasing in particular.

The SMMT said the total number of cars produced in October was 41% down from the same month last year.

The decline was exacerbated by the permanent closure of the Honda plant in Swindon in July.

“More positively, the production of the latest battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and hybrids (HEVs) accounted for 30.9% of all cars manufactured in October,” said the SMMT.

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“BEV manufacturing increased 17.5% to 8,454 units, meaning that so far this year UK automakers have produced more than 50,000 zero-emission vehicles, exceeding the total built in the entire 2019 pre-pandemic. “

Jaguar Land Rover, Britain’s biggest car maker, has forecast a “gradual recovery” in chip availability from spring, though SMMT fears it will be 2023 before supplies return to normal levels.

Managing Director Mike Hawes said of October production data: “These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK automakers and their suppliers.

“The UK auto sector is resilient, but with the resurgence of COVID in some of our largest markets and stretched and even broken global supply chains, the immediate challenges in keeping the industry operational are immense. “


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