UK car production down as energy costs rise
by geemong

Car production in the UK has continued to fall as manufacturers struggle with global supply chain problems.

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Almost 100,000 fewer cars were built in the first three months of 2022 compared to last year.

Manufacturing has dropped by nearly a third, according to the Society of Motor Manufacturers and Traders (SMMT).

The SMMT linked the decline to a global shortage of computer chips and rising energy costs for manufacturers.

During the first three months of the year, a total of 207,347 new cars were built in the UK, down from 306,558 in the same three months in 2021, when the pandemic created added pressures for manufacturers.

Manufacturers have been struggling to get hold of the parts they need - in particular semiconductors, or computer chips, which are widely used on modern vehicles.

The closure of Honda's plant in Swindon last year has also been a major factor, and has contributed to a steep reduction in the number of cars exported to the US. Exports to the US saw the greatest decrease last month and declined by 63.8% during March, while exports to the EU declined by 24.5%.

The war in Ukraine is also having an effect on production, with factories struggling to get hold of parts such as wiring systems that would normally come from the region.

Meanwhile, carmakers are becoming increasingly concerned about the impact of rising energy costs.

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