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UK car plants have worst November since 1984 -Breaking

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© Reuters. FILE PHOTO – A truck carrying a car trailer and a lorry leaves Honda’s car plant at Swindon in Britain on February 18, 2019. REUTERS/Eddie Keogh

LONDON, (Reuters) – British automakers experienced their worst November since 1937 as they struggled with the effects of the pandemic coronavirus on supply chain globalization. Industry data on Thursday showed that the sector was slowing down.

Car production fell by 28.7% compared with November 2021 to 75,756 units, despite a 53% increase in electric vehicle output, the Society of Motor Manufacturers and Traders (SMMT) said.

This was the fifth month in a row of declining performance and the worst November since 1984.

Some of the fall was due to the permanent closure of a Honda’s car factory in July but SMMT Chief Executive Mike Hawes said the figures were “incredibly worrying” and underscored the severity of the industry’s situation.

British automobile production was just below 800,000.000 units for the first 11 months in 2021. This is a decrease of 433,000 units compared to 2019.

“COVID is impacting supply chains massively, causing global shortages – especially of semiconductors – which is likely to affect the sector throughout next year,” Hawes said.

Hawes indicated that rising inflation and Omicron virus caused economic slowdowns could lead to a worse business climate than in previous decades.

He stated, “We must look at government to provide support measures as it recognizes other COVID-impacted sector.”

On Tuesday, Britain provided additional support to Omicron-stricken hospitality and leisure companies with 1 billion pounds.

Hawes stated that Britain’s auto industry is as prepared as possible for full post-Brexit controls at UK border borders starting Jan. 1, but delays could cause additional stress to just-in time operations.

“Should there be any issues, it is imperative that you immediately implement contingency strategies to maintain cross-border commerce flowing seamlessly.” he stated.

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