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Car production ‘slumped’ in July

Research shows that car production “slumped” last month due to the persistent staff shortage caused by the “pingdemic” and the global shortage of microchips.

Just under 53,500 cars were built in July, a 37.6% decrease from the same month last year and the worst July performance since 1956, said the Society of Motor Manufacturers and Traders (SMMT).

Summer factory closings also affected production, which in the UK fell 38% to 8,233, while production for export fell 37.4% to 45,205.

Every fifth car manufactured in July was refueled with an alternative fuel, the highest percentage since time immemorial, announced the SMMT.

While the effects of the “pingdemic” will subside as the self-isolation rules change, the global shortage of semiconductors shows little sign of subsiding

Mike Hawes, SMMT

More than a quarter of all cars manufactured in July were either battery electric (BEV), plug-in hybrids (PHEV) or hybrid electric (HEV), the highest proportion ever.

More than eight out of ten vehicles built last month were for export.

Auto production remains up 18.3% from the 2020 Covid hit to 552,361 units, but is down 28.7% from pre-2019 levels, the SMMT said, adding that production slumped last month may be.

Mike Hawes, CEO, said: “These figures show the extremely difficult conditions that UK automakers continue to face.

“While the effects of the“ pingdemic ”will subside as the self-isolation rules change, the global shortage of semiconductors is showing little sign of subsiding.

“The UK auto industry is doing what it can to keep production lines running, which demonstrates the adaptability of its workforce and manufacturing processes and business rates for a sector that is strategically important to deliver net zero.”

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