The UK car industry has warned of challenges just to remain operational after it produced just shy of 65,000 cars last month – the weakest October since 1956.
The Society of Motor Manufacturers and Traders (SMMT) blamed “production stoppages” linked to the shortage of semiconductors globally for the woeful total, adding that a resurgent coronavirus pandemic could make things worse in the months ahead.
The chip shortage is tipped, according to consulting firm AlixPartners, to cost the world’s automotive industry $60bn (£45bn) in lost sales this year.
The closure of Honda’s Swindon plant in the summer has added to the lower volumes
The lack of chips – a result of COVID-19 disruption that has left supply lagging high demand – has hampered sectors across the factory economy from gaming console producers to defence.
It has also damaged the transition towards the electric car future – demanded by this country’s government ahead of the looming ban on the sale of new vehicles powered by petrol and diesel engines…
