Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

The number of cars rolling off UK production lines rose - but only compared with a month last year when plants were shut down.

UK car production remains stuck in the doldrums as chip shortages hamper the recovery from the coronavirus crisis, latest industry data shows.

The number of vehicles made last month was up by 46.6% on the same time last year when plants were forced to shut - but more than a fifth lower than the average for recent years.

A global semiconductor shortage was the most notable of problems faced by manufacturers, according to the Society of Manufacturers and Traders (SMMT), which compiled the figures.

They come a day after it was announced that production of the Mini, which is made in Oxford, would be halted for a few days because of the shortage.

Last week Jaguar Land Rover, Britain's biggest car maker, said production at its plants at Halewood and Castle Bromwich was being suspended temporarily for similar reasons.

The chip shortage has become a global manufacturing issue, with US carmaker Ford saying last night that it could cut production levels by half over the current second quarter.

Meanwhile, tech giant Apple warned that a shortfall could hit iPad and Mac sales by up to $4bn in the current quarter.

The monthly SMMT data showed that 115,498 cars rolled off UK production lines in March, up from 78,767 a year ago and the first year-on-year increase after 18 months of decline.

But the figure compares with a period when, in mid-March 2020, all car plants were forced to shut at the start of the first lockdown.

Over last year as a whole, production fell to the lowest level since 1984 - blamed on the temporary shutdowns as well as Brexit uncertainty and depressed demand.

The latest monthly total is 22.8%, or more than 30,000 vehicles, lower than the average for March over the past five years.

SMMT chief executive Mike Hawes said: "The first rise for UK car production since summer 2019 is a major step in the right direction but belies the underlying situation.

"With factories shut for much of March 2020, output was always going to be up but it remains below average, with some £11bn worth of production lost over the past year.

"Whilst the COVID situation is improving in the UK and in some major export markets, manufacturers are still struggling to manage residual issues, most notably the global semiconductor shortage."

The figures also highlighted the shift from traditional diesel and petrol cars to battery electric and hybrid vehicles, with more than one in five cars made in the UK now "alternatively fuelled".

A survey by the SMMT also pointed to the pressures facing the sector following the end of the Brexit transition period.

It showed that 91% were spending more time and resources managing trade with the EU - the biggest market for UK-made cars - than they did last year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×