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August 26, 2021 02:17 AM

UK car output falls to lowest July level since 1950s

Global shortage of semiconductors shows little sign of abating, industry association says

Reuters
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    Range Rover production Solihull

    Jaguar Land Rover is prioritizing production of high-margin models to help offset the shortage of chips. Shown is Range Rover production at Solihull, England.

    LONDON -- British car output fell to its lowest July level since 1956 as a global shortage of semiconductor chips and staff having to self-isolate due to COVID-19 hit the sector.

    Volumes dropped by an annual 38 percent to 53,438 vehicles last month, according to the Society of Motor Manufacturers and Traders (SMMT), which also blamed the decline on the timing of summer factory shutdowns.

    As coronavirus cases rose last month, hundreds of thousands of people were being "pinged" by the National Health Service's contact-tracing app and instructed to self-isolate, although it has since been tweaked to reduce the numbers contacted.

    "While the impact of the ‘pingdemic’ will lessen as self-isolation rules change, the worldwide shortage of semiconductors shows little sign of abating," SMMT CEO Mike Hawes said in a statement on Thursday.

    UK automaker Jaguar Land Rover said last month it expected the chip shortage to continue into 2022, and the company is prioritizing production of more profitable vehicles.

    Nissan's output at its factory in Sunderland, England, has also been hit by a lack of chips.

    Related Article
    Jaguar Land Rover to shift production to high-margin models as chip shortage continues
    Nissan will furlough 800 UK workers as chip shortage cuts production, report says
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