Engine production stalled by semiconductor shortage

Engine production in June was marginally up on the same month last year, but 30.9% down on the five-year average.

Figures from the Society of Motor Manufacturers and Trades found that UK factories made 157,623 engines, just 0.6% more than a year ago.

Meanwhile, production in the first half of the year rose 15.3% on 2020 but remains 31.5% below pre-pandemic levels.

Mike Hawes, SMMT chief executive, said: “Despite seeing a marginal rise on a weak month in 2020, June’s engine output remains significantly below the pre-pandemic average for the month. Likewise, it has been a challenging first half year, with engine output struggling to recover to pre-Covid levels.

“The global shortage of semiconductors has hit vehicle manufacturers, and in turn engine production, with firms now also having to battle staff shortages due to workers being ‘pinged’. The government must take urgent action to address this issue, including bringing forward plans to exempt fully vaccinated adults from self-isolation from 16 August and introducing a “test to release” scheme to support those employees not yet fully vaccinated.”