Auto News

Staff and supply shortages threaten UK car production revival

Nissan’s Sunderland plant was affected by workers being “pinged” by an overly enthusiastic NHS app

According to the latest figures released by the Motor Manufacturers Association (SMMT), UK car production is declining due to supply-side factors, even though it is up compared to a year ago.

SMMT also said continued staff and supply shortages (semiconductors) threatened the revival of UK car production. The shortage of staff in UK factories related to pandemics exacerbates the negative impact of the shortage of electronic components that are important to manufacturers.

The UK car factory produced 69,097 units in June. According to SMMT, this was up compared to the June 2020 recession by Covid, but the worst June since 1953 as a global pandemic chip shortage and other factors continued to hurt production. Shows the total.

The June performance ended the turmoil in the first six months of UK car production, with pandemics, new trade rules with Europe and supply problems creating ongoing challenges. Approximately 498,923 cars rolled off the production line in the first half, down 38.4% from the five-year first-half average, representing a loss of 311,160 cars, worth more than £ 8.5 billion.

Exports continue to maintain UK car manufacturing, with more than eight-tenths (83.4%) of the models manufactured here shipped abroad this year. More than half of these (51.7%) go to the EU, with the United States being the second most important global market after the UK (accounting for 18.8% of exports), followed by China (7.8%), Japan (1.9%) and Australia (1.8%). ) Followed. ..

On the other hand, the production of battery-powered electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs) in the UK is fueled alternately by about a quarter (22.6%) of all vehicles. It is stable year by year. However, SMMT noted that the end of sales of new gasoline and diesel vehicles is imminent within nine years, and the industry faces the challenge of accelerating the transition from fossil fuels to zero-emission vehicles. This will require significant investment in automotive manufacturing, battery production, and supply chain transformation, where clear efforts to enhance UK automotive competitiveness are essential.

Despite the relaxation of Covid’s restrictions, manufacturers are experiencing staff shortages due to self-isolation due to contact notifications outside the workplace. This puts production at risk and is another impediment to sector recovery. Indeed, independent research predicts that the planned negative impact on UK car production could be as high as 100,000 units this year, primarily due to a global shortage of critical semiconductors.

Mike Hawes, CEO of SMMT, said: The latest investments in new models and battery production show that a bright future is within reach, but the industry is still facing headwinds.

“Companies have confirmed that the facility is safe with Covid, but have advanced the target date of August 16 to exempt fully vaccinated adults from self-isolation, and employees who have not yet been fully vaccinated. Urgent action is needed, such as the introduction of a “release test” scheme to support personnel. ..

“But while operational conditions are still harsh, certain ways to get the sector back on track and make it more competitive, such as creating a Build Back Better Fund and reducing high energy costs, for the volume of UK facilities to build. It highlights the need for action. It’s feasible. ” Staff and supply shortages threaten UK car production revival

Back to top button