Photo: YouTube Screenshot/Al Jazeera English
Vehicle production has slumped in the UK to the lowest in 65 years after the industry suffered some setbacks, including the global health crisis and microchip shortage based on figures from SMMT (Society of Motor Manufacturers and Traders).
According to SMMT, car production was down by 6.7% over 859,575 and down by a third compared to pre-pandemic figures.
The organization said the decline was partly due to the global chip crisis. Still, a few quarters was due to the closure of Honda’s Swindon manufacturing unit that produced the Civic. Before its closure, the Japanese auto manufacturer was Britain’s fifth-largest car manufacturer. Mike Hawes, SMMT’s chief executive, admitted that 2021 was a dismal year.
Surprisingly, UK’s used car market experienced a boom during the health crisis, with the average vehicle price increasing by 20% within the first six months of getting sold. Dailymail reported.
The industry could improve due to electric and hybrid car production, which has risen by about 30%. They also account for nearly a quarter of the vehicles produced in the period.
SMMT called 2021 one of the worst years since the second world war. They stated the main reason for the decline was a severe shortage of computer chips and semiconductors. Modern vehicles use complex electronics and need between 1,500 and 3,000 chips to operate intricate systems such as emissions, engine management, and navigation systems.
The chip crisis was not the only reason. The global health crisis forced most auto manufacturer staff into isolation, leading to widespread absences. Despite the dismal year, there is still hope, primarily due to the announcement of £4.9 billion set aside for new investments, many of them in tech and electric vehicles.
Hawes added that the Brexit deal with the European Union had offered encouragement after five years of declining investment. He also warned that high energy costs are a growing concern and threaten the viability of EV production plants.
The organization said the decline was partly due to the global chip crisis. Still, a few quarters was due to the closure of Honda’s Swindon manufacturing unit that produced the Civic. Before its closure, the Japanese auto manufacturer was Britain’s fifth-largest car manufacturer. Mike Hawes, SMMT’s chief executive, admitted that 2021 was a dismal year.
Surprisingly, UK’s used car market experienced a boom during the health crisis, with the average vehicle price increasing by 20% within the first six months of getting sold. Dailymail reported.
The industry could improve due to electric and hybrid car production, which has risen by about 30%. They also account for nearly a quarter of the vehicles produced in the period.
SMMT called 2021 one of the worst years since the second world war. They stated the main reason for the decline was a severe shortage of computer chips and semiconductors. Modern vehicles use complex electronics and need between 1,500 and 3,000 chips to operate intricate systems such as emissions, engine management, and navigation systems.
The chip crisis was not the only reason. The global health crisis forced most auto manufacturer staff into isolation, leading to widespread absences. Despite the dismal year, there is still hope, primarily due to the announcement of £4.9 billion set aside for new investments, many of them in tech and electric vehicles.
Hawes added that the Brexit deal with the European Union had offered encouragement after five years of declining investment. He also warned that high energy costs are a growing concern and threaten the viability of EV production plants.
Google News