Car production in Britain has been hit hard by the coronavirus pandemic, falling 6.7% to 859,575 units in 2021, the worst level since 1956, according to a report released today.
“The shortage of semiconductors, which is crucial in the modern car industry, has been the main cause of the decline, with factories being forced to reduce or even suspend production pending spare parts, whose supply has been severely curtailed by the pandemic.” says the Society of Motor Manufacturers and Traders (SMMT), the trade association for the British car industry, in its report.
Manufacturers have also struggled to cope with staffing shortages (which resulted from quarantine) and reduced demand, with car shows closed for months due to lockdowns, despite an increase in online orders, SMMT added.
Another reason that led to the decline in production, which is not related to the pandemic, the report says, was “the closure in July of one of the largest factories in Britain, which is related to about 1/4 of the annual reduction.”
“2021 was another incredibly difficult year for the British car industry, one of the worst since World War II, which marks the industry’s exposure to structural and, in particular, pandemic-related effects,” he said. SMMT CEO Mike Hoz.
Despite the “poor” performance, the report points out, the British carmaker has produced a record number of electric and hybrid vehicles, around 250,000. These vehicles, zero or extremely low emissions, accounted for almost one in four built in total last year.
In a second report released today, SMMT states that engine production in the UK fell by 10.8% in 2021 to around 1.6 million units, with the impact of a lack of semiconductors in car and van production also reducing demand for engines.
However, Hoz said that “there is hope that the industry can recover in 2022, as the number of vehicles produced is back on track.”
He also pointed out that “action is needed to address the increased energy costs and shortages in the supply chain, while in the long run we must continue to upgrade our workforce to produce electric motors.”
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