Society of social manufacturers and traders is calling on the government to support industry
Automobile plants across the UK have produced the lowest number of vehicles since the 1956 Suez crisis.
In July, only 53,000 vehicles were built. This is a 37% decrease compared to the same month in 2020 when the UK emerged from its first pandemic-induced lockdown.
– Advertising –
Factors that cause the slowdown include “pindemic,” a global shortage of microchips, and traditional summer holidays closures in automotive plants.
Overall production levels rose 18.3% year-on-year in 2021, but numbers fell 28.7% compared to 2019 before the pandemic.
As a result of poor performance and the impact of Covid, the Association of Motor Manufacturers and Traders (SMMT) downgraded its production forecast for 2021, cutting 55,000 to 950,000.
SMMT suggested that the UK government should intervene to provide support to the industry.
“These numbers bare the extremely harsh conditions that UK automakers continue to face,” said Mike Hawse, SMMT CEO. “The effects of pindemics decrease as self-isolation rules change, but the global shortage of semiconductors shows little indication of mitigation.”
There is a global shortage of computer chips for cars as production moved during the pandemic to meet consumer demand for electronic products. The average new car requires 1,500 microchips.
Some companies, including Toyota, have closed production at their factories for a temporary period.
SMMT numbers suggest that the UK’s automotive industry accounts for 13% of exports.
“The government can help by continuing to be competitive and increasingly competitive, along with energy collection and business rates for sectors that are strategically important to deliver net zero,” Hawes said. It states.
