Auto industry laments lack of budget support

Auto industry bemoans lack of budget support as UK auto production falls for third consecutive month and September production is lowest since 1982

  • Some 67,169 cars rolled off UK production lines last month, according to recently released data
  • Productions were down 41.5% from a year ago and lowest in September in 39 years
  • Industry bosses blamed the current global semiconductor chip shortage
  • SMMT CEO says budget “missed opportunity to provide meaningful short-term support” to sector










The auto industry has lamented a lack of support in the budget as the number of vehicles built in the UK fell for the third month in a row.

A total of 67,169 cars rolled off production lines last month, down 41.5% from the same period last year, and the worst figure for September since 1982, the Manufacturers’ Society said on Thursday. and engine dealers (SMMT).

Production continues to be affected by the global semiconductor shortage, the trade body said.

Slow lane: UK production of new cars continues to be hit by global semiconductor shortage, says auto industry boss as he blames government for failing to support struggling industry after Covid

More than eight in 10 domestic auto companies (83%) have been negatively affected by the computer chip shortage, mainly due to reduced orders, cost increases, logistics delays and disruption, according to a recent SMMT survey and of British industry at large. sector.

The supply chain has spent over £ 2.4bn to date to deal with additional costs that are unlikely to be recovered, with most (56%) not expecting supply constraints improve before Q3 2022 and more than a third (38%) need to cut operating hours to cope with the challenge.

About one in 10 companies have made layoffs and / or restructured their activities as a direct result of the lack of semiconductors, while six in 10 SMEs (65%) have requested an extension of job retention programs linked to the coronavirus, highlighting the fact that although the pandemic is receding, its impact on the sector remains pronounced.

Industry bosses said the worst September for UK car production in 39 years was also due to the recent shutdown of Honda Swindon, which had been one of the UK’s largest vehicle factories in the county that built the popular Civic family sedan for the European market.

Industry bosses have said the worst September for UK car production in 39 years was also due to the recent closure of the Honda Swindon plant earlier this year.

Industry bosses have said the worst September for UK car production in 39 years was also due to the recent closure of the Honda Swindon plant earlier this year.

He said although the budget confirmed £ 817million for the transition in auto manufacturing and commercial tariff relief on renewables, the industry continues to grapple with the continuing effects of the pandemic.

Mike Hawes, CEO of SMMT, said the budget “missed the opportunity to provide meaningful short-term support.”

“The substantial drop in UK auto production in September continues the worrying trend we have seen over the past three months,” he said in a statement today.

“The industry continues to fight the effects of the pandemic with the semiconductor shortage blocking production.

“While there was welcome news in the budget to support the transition to zero-emission vehicle production, battery manufacturing and supply chains, it missed the opportunity to offer meaningful support in the short term given the supply constraints linked to Covid and the increase in energy bills.

“It is disappointing given the importance of the sector and its ability to create well-paid jobs in the regions and the income it generates, especially from exports.”

A total of 67,169 cars rolled off production lines last month, down 41.5% from the same period last year, and the worst September figure since 1982.

A total of 67,169 cars rolled off production lines last month, down 41.5% from the same period last year, and the worst September figure since 1982.

UK car production since the start of the year remains up slightly, by 3.8%, with 656,776 cars leaving factories, which is largely driven by exports with 82.7% of products destined for overseas markets.

However, that doesn’t give the full picture, with the year-to-date total for the year down a third from 2019 data.

It’s also a whopping 44.1% less – which equates to 517,438 units less – than the five-year average before the pandemic.

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