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Lowest October UK car output since 1956 amid chip shortage -Breaking

© Reuters. FILE PHOTO – Vauxhall Astra cars are shown on a Vauxhall factory production line in Ellesmere Port (Britain), July 6, 2021. REUTERS/Phil Noble

LONDON, (Reuters) – The UK’s car production fell by 41.4% in October due to a global shortage of semiconductor chips. Also, a closure at a plant caused the sector to fall.

Data from the Society of Motor Manufacturers and Traders showed that 64,729 vehicles were rolled off British production line lines.

This was due to global supply chain issues and Honda’s factory closing in July.

In the first 10 months, the car production was 721,505 units. This is 2.9% lower than the 2020 figure.

The SMMT stated that the full-year van and car production will fall below 1,000,000 for the second year in a row, but it is likely to rise to over this level by 2022. This was based on an AutoAnalysis independent prediction.

Mike Hawes, Chief Executive of SMMT said that although Britain’s auto sector has shown resilience, COVID is resurgent in some markets. Global supply chains are stretched and breaking and the challenges to keeping it operational are immediate.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.