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UK News Car production for September falls to lowest in 40 years

04:50  28 october  2021
04:50  28 october  2021 Source:   news.sky.com

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The number of cars built in the UK has continued to fall for the third month in a row, dropping to their lowest level for September since 1982. A total of 67,169 cars were produced in Britain last month, a decline of 41.5% year-on-year, according to a new report from the Society of Motor Manufacturers and Traders (SMMT). Car manufacturers around the world are battling with an ongoing shortage of semiconductors, as the industry struggles to recover from its slump last year, when factory disruption and depressed demand caused by the pandemic saw output fall to its lowest level in nearly 40 years .

Toyota is to slash worldwide vehicle production by 40 % in September because of the global microchip shortage. The world's biggest carmaker had planned to make almost 900,000 cars next month, but has now reduced that to 540,000 vehicles. Volkswagen, the world's second-biggest car producer, has warned it may The Covid pandemic boosted demand for appliances that use chips, such as phones, TVs and games consoles. On Thursday, German firm Volkswagen, which cut output earlier in the year , told Reuters: "We currently expect supply of chips in the third quarter to be very volatile and tight.

The number of cars built in the UK has continued to fall for the third month in a row, dropping to their lowest level for September since 1982.

  Car production for September falls to lowest in 40 years © Reuters

A total of 67,169 cars were produced in Britain last month, a decline of 41.5% year-on-year, according to a new report from the Society of Motor Manufacturers and Traders (SMMT).

The fall represented a "worrying trend", the industry body said in a statement.

Car manufacturers around the world are battling with an ongoing shortage of semiconductors, as the industry struggles to recover from its slump last year, when factory disruption and depressed demand caused by the pandemic saw output fall to its lowest level in nearly 40 years.

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Weakest September for car registrations for 23 years : The last time sales of new motors was this low was 1998 - the year before the UK introduced a two-plate per calendar year system. Billionaire and entrepreneur Elon Musk is the CEO of Tesla, among other businesses. A 'sorry no diesel' sign at an Applegreen petrol station in central London earlier today. Tesla's Model 3, which starts from £ 40 ,990 and is not eligible for any government grants, was Britain's best-selling new model in September . Memes mocking drivers of petrol fueled cars exploded during the shortage last week.

An ongoing global shortage of computer chips is being blamed for new car registrations in Britain falling to their lowest levels in more than 20 years . Industry trade body the Society of Motor Manufacturers and Traders (SMMT) said there were a total of 215,312 cars registered in September . The shortage of semiconductors is being blamed on falling car production . Despite it being a difficult year for the car industry as a whole, registrations of electric vehicles have soared. There were more than 32,000 electric cars recorded on databases in one month in September

Around one in 10 automotive firms have made redundancies or restructured their businesses as a direct result of the lack of semiconductors, said the SMMT.

Exports to the European Union dropped by a third last month, as cars exported to Turkey, Australia, and the US also fell.

Meanwhile, production of electric and hybrid cars continues to break records, the group said, now representing almost a third of all cars made.

"The substantial decline in UK car output in September continues the worrying trend we have seen over the past three months,” said Mike Hawes, SMMT’s chief executive.

"The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production.”

"Whilst there was welcome news in the Budget to support the transition to zero emission vehicle production, battery manufacturing and supply chains, it missed the opportunity to offer meaningful short-term support given COVID-related supply constraints and rising energy bills.”

Buying a new car: Brand loyalty at risk, study claims .
A poll of 2,445 potential purchasers highlighted widespread frustration over forced delays due to new model supply shortages.Vehicle makers have been struggling with limited production outputs since Covid sent nations into full-scale lockdowns around March 2020, and continued difficulties to get hands on the computer chips has seen some brands push back their order delivery estimations by up to - and beyond - a year.

usr: 3
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