January 31, 2023
Last year, the quantity of new cars manufactured in Britain dropped precipitously once more, reaching its lowest level since 1956.
The decrease is a 10% drop from 2021, which was already a record low.
Production lines are being impacted by a continuous global scarcity of semiconductor chips, according to industry group Society of Motor Manufacturers and Traders.
The UK’s lack of a strategy to make the nation a desirable location for manufacturing investment worries the auto industry, though.
Continue reading: British automobile production reaches its lowest point in 66 years
The administration said that it was “determined” to keep the nation at the top of the global auto manufacturing league.
The SMMT estimates that 775,014 automobiles were produced in Britain last year. Prior to the Covid epidemic in 2019, Britain had produced 1.3 million automobiles.
Manufacturers anticipate producing one million automobiles once more in 2025, but returning to pre-pandemic levels will necessitate significant expenditures and the arrival of new automakers in the UK.
Businesses worry that the UK is lagging behind the US and EU in supporting manufacturers with public funds.
The Inflation Reduction Act, an important piece of US legislation, will give automakers billions of dollars in subsidies to create supply networks for electric vehicles in the US.
This will “suck up,” as SMMT CEO Mike Hawes put it, a lot of foreign investment.
An enraged EU is considering reprisal, either by expressly loosening state assistance regulations or by doing so while disguising the action as an expansion of Covid recovery or green technology boost programs.
The freedom from the EU state aid restrictions, which constrained the amount of help governments could provide to preferred industries, should be one of the positives of Brexit.
Mr. Hawes agreed that if we leave the EU, Britain may find itself in the unpleasant position of providing less support to important industries.
According to SMMT statistics, a record number of electric vehicles were produced in the UK last year, accounting for over a third of all vehicles.
The trade association estimated that the value of these cars in exports alone would be £10 billion.
The failure of battery startup Britishvolt last week severely hampered British auto production.
Source: Canada Today
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