Things are not going as planned. . .
By Gary S. Vasilash
According to the Society of Motor Manufacturers and Traders (SMMT), the British automotive trade association, this past July the UK vehicle production number was 53,438.
In July 2020—when the pandemic was still shockingly smacking every economy everywhere—the number of vehicles produced was 85,696.
Which means that production has declined 37.6%.
Now maybe it was just something to do with the month of July.
SMMT points to the shortage of chips. The contact tracing system that is in place in the UK (leading to many people getting alerts on their phones about contact, something called the “pingdemic”), and some companies just shutting down for a break to accommodate supply change changes.
The good news in all of this is that the production numbers year-to-date in 2021 are 18.3% higher than they were in 2020.
That said, it is clear that there are still challenges being faced in the UK auto industry, which, according to the SMMT, accounts for 12.8% of all UK exports and directly employs some 168,00 people.
Which means it is non-trivially important to the overall UK economy.