An ongoing semiconductor crunch has caused British car production to slump to its lowest level in over six decades, reveal new figures published today.
Vehicle production dropped 40 per cent over the last month as producers contest with an endemic shortage of chips that has snagged the motor sector for over a year.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, the organisation that compile the figures, said: “These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK car manufacturers and their suppliers.”
Booming demand for consumer electronics triggered by the pandemic forcing large swathes of the global workforce to work from home prompted semiconductor chip producers to channel production toward electronic devices.
A shift in production has left car producers struggling to get their hands on chips needed to maintain vehicle production levels, resulting in firms curbing production due to low chip stock levels.
Car producers are also competing with each other to secure chips, which has driven up prices and crimped margins in the motor sector, causing firms to rein in production to minimise losses.
Manufacturers turned out some 64,729 cars in October, the lowest reading for the month since 1956.