Arab Press

بالشعب و للشعب
Thursday, Apr 25, 2024

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

COVID-19: Chip shortage throws spanner in the works as car industry struggles to recover from coronavirus crisis

The number of cars rolling off UK production lines rose - but only compared with a month last year when plants were shut down.

UK car production remains stuck in the doldrums as chip shortages hamper the recovery from the coronavirus crisis, latest industry data shows.

The number of vehicles made last month was up by 46.6% on the same time last year when plants were forced to shut - but more than a fifth lower than the average for recent years.

A global semiconductor shortage was the most notable of problems faced by manufacturers, according to the Society of Manufacturers and Traders (SMMT), which compiled the figures.

They come a day after it was announced that production of the Mini, which is made in Oxford, would be halted for a few days because of the shortage.

Last week Jaguar Land Rover, Britain's biggest car maker, said production at its plants at Halewood and Castle Bromwich was being suspended temporarily for similar reasons.

The chip shortage has become a global manufacturing issue, with US carmaker Ford saying last night that it could cut production levels by half over the current second quarter.

Meanwhile, tech giant Apple warned that a shortfall could hit iPad and Mac sales by up to $4bn in the current quarter.

The monthly SMMT data showed that 115,498 cars rolled off UK production lines in March, up from 78,767 a year ago and the first year-on-year increase after 18 months of decline.

But the figure compares with a period when, in mid-March 2020, all car plants were forced to shut at the start of the first lockdown.

Over last year as a whole, production fell to the lowest level since 1984 - blamed on the temporary shutdowns as well as Brexit uncertainty and depressed demand.

The latest monthly total is 22.8%, or more than 30,000 vehicles, lower than the average for March over the past five years.

SMMT chief executive Mike Hawes said: "The first rise for UK car production since summer 2019 is a major step in the right direction but belies the underlying situation.

"With factories shut for much of March 2020, output was always going to be up but it remains below average, with some £11bn worth of production lost over the past year.

"Whilst the COVID situation is improving in the UK and in some major export markets, manufacturers are still struggling to manage residual issues, most notably the global semiconductor shortage."

The figures also highlighted the shift from traditional diesel and petrol cars to battery electric and hybrid vehicles, with more than one in five cars made in the UK now "alternatively fuelled".

A survey by the SMMT also pointed to the pressures facing the sector following the end of the Brexit transition period.

It showed that 91% were spending more time and resources managing trade with the EU - the biggest market for UK-made cars - than they did last year.

Comments

Sid 3 year ago
Boy that 1953 chev you have is now worth more everyday

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×