UK car production collapses to lowest for 66 years
By Simon Jack & Beth Timmins
BBC business editor & business reporter
The number of new cars made in the UK fell sharply again last year, sinking to its lowest level since 1956.
The drop marks a 10% fall from 2021, which itself was a historic low.
A continuing global shortage in semiconductor chips hit production lines, industry body the Society of Motor Manufacturers and Traders said.
But car makers are concerned the UK has not yet got a strategy to make the country competitive as a destination for manufacturing investment.
The government said it was "determined" to ensure the country remains a top global location for car manufacturing.
The SMMT said the UK produced 775,014 cars last year. In 2019, before the Covid pandemic, the UK had made 1.3 million vehicles.
Manufacturers hope that they will hit one million vehicles again in 2025, but getting to pre-pandemic levels would require major investment and new car makers to come to the UK.
Firms are worried that the UK is falling behind the US and the EU when it comes to offering state aid to manufacturers.
A very significant bit of US legislation - the Inflation Reduction Act - will offer billions in subsidies to car makers who create electric vehicle supply chains in the US.
Mike Hawes, chief executive of the SMMT, said this will "hoover up" a lot of international investment.
An angry EU is considering retaliating by either explicitly relaxing state aid rules or doing so under the guise of extending Covid recovery or green technology-boosting programmes.
One of the benefits of Brexit was meant to be escaping from the straitjacket of EU state aid rules which limited the amount of support governments could give to favoured industries.
Mr Hawes conceded the UK could be in the unenviable position of offering less support to crucial industries than we did before we left the EU.
UK car production in 2022 was 775,000. By contrast here is car production for the first 9 months of 2022 in EU countries. With Turkey producing over 1.35 million cars in the whole year, the UK would appear to now be the 7th largest car producer in Europe.
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In 2017, UK car production was close to that of France and Turkey, as it vied to be Europe's 3rd largest car producer, behind Spain and Germany.
Only few months ago Brexit apologists were claiming UK comparative performance was unchanged.
Medium to long term passenger vehicle production in the U.K. could simply end.
Brexit: "The UK car industry hasn’t been this weak since 1956 – and it’s losing the EV race " - CNN Business
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