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UK Car Output Slumps as Chip Shortages Bite

Sept. 30, 2021
Jaguar, Nissan and Vauxhall and other UK automakers made a little over 37,000 vehicles in August, down from about 51,000 one year earlier.

UK car production slumped 27% in August compared with a year earlier on production stoppages, notably owing to the global shortage of semiconducters, an industry body revealed Thursday.

"Another significant decline for UK car production is extremely worrying both for the sector and its many thousands of workers nationwide," said Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders.

"While not the only factor at play, the impact of the semiconductor shortage on manufacturing cannot be overstated," the SMMT head added in a statement.

The organization added that output was affected also by manufacturers' seasonal factory shutdowns. 

Britain's mainly foreign-owned car industry, featuring the likes of Jaguar, Nissan and Vauxhall, made a little over 37,000 vehicles in August, down from about 51,000 one year earlier.

After a strong recovery at the beginning of the year, a global shortage in computer chips -- key components in both electric and conventional vehicles -- has held back car production worldwide.

The renewed scarcity is in part the result of renewed curbs over outbreaks of Covid-19, in particular in Malaysia, where key semiconductor production facilities are located.

Agence France-Presse, 2021

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