Car production hits four-decade low

[Zoomy]

Don't expect that new car soon. Semi-conductor woes still abound

Via ft

New car production in the UK fell to its lowest level in 39 years last month. Output continues to be dogged by supply chain shortages, most notably the lack of semiconductors which has led to temporary closures of some of the UK’s biggest car plants, new figures form the Society of Motor Manufacturers and Traders shows.

Production fell by 41.5 per cent in September, the third consecutive month of decline, with 67,169 cars made. More than eight in 10 UK manufacturers have been negatively affected by the supply chain snarl-up, either as a result of logistics delays and disruption, lower orders or cost increases.

More than half (56 per cent) do not expect the current situation to ease until the third quarter of next year and one in 10 said they had made redundancies as a direct result of the shortages. “The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production,” said SMMT chief executive Mike Hawes.

 

[Lovemyev]

Don't expect that new car soon. Semi-conductor woes still abound

Via ft

Strong residual values are hear for a while to come then !.

 

[EVsince2016]

I think the chip shortage is a bit of a smokescreen for other issues.

The reality is that the sales of ICE cars will reduce significantly over the next few years and will do so with a gap before EV sales replace them. Also with a longer warranty, life and suitability for rent by the hour the number of EVs going forwards will also reduce compared to ICEs. They also have to reduce the average CO2 per vehicle or get fined. Its is easier at the moment to reduce ICE sales than to force up sales of EVs as loss leaders. Its about profit rather than sales and they can play hard done by at the same time.

Manufacturers are to some degree happy for the current crisis as it enables them to switch factories over to EVs & retrain.

MG & Tesla don't seem to have the same problems as legacy manufacturers.