Semiconductor shortage drives car production off the road
The impact of the ongoing shortage of semiconductor chips was laid bare this morning as the Office of National Statistics (ONS) said that car manufacturing fell over a quarter in May.
The government agency said that vehicle production fell 26.9 per cent in the period, driving an overall fall in manufacturing output of 0.1 per cent.
As a whole, transport equipment manufacturing also fell 16.5 per cent, its largest fall since April last year.
The ONS was explicit in pinning the blame for the slowdown on the current chip crisis, which has forced carmakers both in the UK and globally to curb production.
Since February, firms such as Honda and Nissan have warned that a dearth of the chips, which are vital for power steering systems and other software components, could seriously impact their performance this year.
And semiconductor producers have warned that the shortfall, which came about due to a rise in demand for electronic devices such as laptops and tablets during lockdown, could continue into next year.
In addition to Honda, which has idled staff on several occasions to deal with the issue, Jaguar Land Rover has also been forced to slow production at some of its facilities.
On the other side of the world, Chinese car sales also suffered in June, falling 12.4 per cent, due to the same issue.
China’s overall sales stood at 2m vehicles in June, according to data from the China Association of Automobile Manufacturers (CAAM).