We would love to hear your thoughts about our site and services, please take our survey here.

Less Ads, More Data, More Tools Register for FREE

Semiconductor shortage blamed for fall in UK car building numbers

Thu, 30th Sep 2021 05:54

(Alliance News) - The number of cars built in the UK last month fell by 27% compared to a year ago, new figures show.

A total of 37,246 cars left production lines, according to the Society of Motor Manufacturers & Traders.

Output was affected by the continuing global shortage of semiconductors leading to production stoppages, as well as the timing of some summer factory shutdowns.

Production of the latest battery electric, plug-in hybrid and hybrid cars reached a new high, representing more than a quarter of all cars made, said the SMMT.

Car building for the UK market increased by 3.3% in the month, but exports fell by a third.

A total of 29,200 cars were shipped overseas, with the decline driven by falling exports to markets including Australia, the US and China.

Production in the year to date remains up, by 14%, said the SMMT.

Chief Executive Mike Hawes said: "Another significant decline for UK car production is extremely worrying both for the sector and its many thousands of workers nationwide.

"While not the only factor at play, the impact of the semiconductor shortage on manufacturing cannot be overstated.

"Carmakers and their suppliers are battling to keep production lines rolling, with constraints expected to continue well into 2022 and possibly beyond.

"Job support schemes such as furlough have proven such a lifeline to automotive businesses yet its cessation today comes at the worst time, with the industry still facing Covid-related stoppages which are damaging the sector and threatening the supply chain in particular.

"Other countries have extended their support; we need the UK to do likewise."

source: PA

Copyright 2021 Alliance News Limited. All Rights Reserved.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.