BULLETIN Your monthly news round-up of the Scottish Motor Industry
JULY 2021
STAFF & SUPPLY SHORTAGES THREATEN UK CAR PRODUCTION REVIVAL 69,097 CARS ROLL OFF PRODUCTION LINES IN JUNE, WEAKEST TOTAL SINCE 1953, BAR COVID HIT JUNE 2020.
UK FACTORIES TURN OUT 498,923 CARS IN FIRST HALF OF YEAR, DOWN -38.4% ON FIVE-YEAR AVERAGE.
LATEST FORECAST SUGGESTS GLOBAL CHIP SHORTAGE COULD NEGATIVELY IMPACT PLANNED UK PRODUCTION VOLUMES BY UP TO 100,000 UNITS.
INDUSTRY CALLS FOR IMMEDIATE ACTION TO MITIGATE IMPACT OF SELF-ISOLATION OR RISK FURTHER BLOW TO RECOVERY.
UK car factories turned out 69,097 units in June, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). While this was a rise compared with the Coviddepressed June 2020, it still represents the worst June total since 1953 as the global chip shortage, caused by the pandemic, and other factors continued to take a toll on production.1 The performance rounded off a turbulent first six months for UK car production, with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges. 498,923 units rolled off production lines, down -38.4% on the five-year, first-half average representing a loss of 311,160 cars worth more than £8.5billion.2 This reflects how far the sector must go before it can talk about recovery. Exports continued to sustain British car manufacturing with more than eight in ten (83.4%) models made here so far this year shipped overseas. More than half of these (51.7%) headed into the EU, with the US the UK’s next most important global market (taking 18.8% of exports) followed by China (7.8%), Japan (1.9%) and Australia (1.8%). UK production of battery electric (BEV), plug in hybrid (PHEV) and hybrid electric (HEV) vehicles, meanwhile, remained steady year-to-date with around a quarter (22.6%) of all cars alternatively fuelled. However, with the looming
1: June 1953 – 57,535 cars made 2: Five-year average for first half (2015-2019): 810,083 units 3: Independent forecast by Auto Analysis July 2021
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end of sale date for new petrol and diesel cars less than nine years away, the industry is challenged to accelerate the transition from fossil fuel to zero emission vehicles. This will require significant investment into vehicle manufacturing, battery production and supply chain transformation for which a clear commitment to enhancing UK automotive competitiveness is essential. Despite the easing of Covid restrictions, manufacturers are experiencing staff shortages due to self-isolation arising from notification of contacts outside the workplace. This is putting production at risk and is another drag on the sector’s recovery. Indeed, an independent study forecasts the negative impact on planned UK car production, primarily due to the worldwide shortage of critical semiconductors, could be as much as 100,000 units this year.3
Article courtesy of SMMT Read the full article here