Britain's car production in the first half of 2021 slumps driven by COVID-19
July 30, 2021, 8:17 am

Britain's car production in the first half of 2021 slumps driven by COVID-19

United Kingdom

According to British Society of Motor Manufacturers and Traders (SMMT), the Xinhua reported that Britain's car production in the first half (H1) of 2021 dropped by nearly 40 percent on the five-year average, driven by the COVID-19 pandemic and supply shortages.

The SMMT said data revealed that car manufacturing output in the country was 498,923 units in H1, down 38.4 percent on the five-year (2015 to 2019) H1 average, representing a loss of 311,160 cars worth more than 8.5 billion pounds (11.8 billion U.S. dollars).

The Xinhua said according to the British car industry association, "the performance rounded off a turbulent first six months for UK car production, with the pandemic, new trading rules with Europe and supply issues causing ongoing challenges."

The SMMT said, in June alone, Britain's car factories turned out 69,097 units. "While this was a rise compared with the COVID-depressed June 2020, it still represents the worst June total since 1953 as the global chip shortage, caused by the pandemic, and other factors continued to take a toll on production."

It added, as exports continued to sustain the country's car manufacturing, about 83.4 percent models in H1 shipped overseas, with 51.7 percent into the European Union, 18.8 percent to the United States, 7.8 percent to China.

Meanwhile, the production of battery electric (BEV), plug in hybrid (PHEV) and hybrid electric (HEV) vehicles remained steady in H1 with around 22.6 percent of all cars alternatively fuelled.

"The latest investments into new models and battery production show a bright future is within reach, yet the industry still faces headwinds most notably from global semiconductor shortages and staff absenteeism as a result of staff being 'pinged'," said Mike Hawes, chief executive of the SMMT.

The SMMT said despite the easing of COVID-19 restrictions, manufacturers are experiencing staff shortages due to self-isolation caused by the National Health Service (NHS) Test and Trace app, putting production at risk and being another drag on the sector's recovery.

"Businesses have ensured their facilities are COVID secure but urgent action is needed, such as bringing forward the Aug. 16 target date for exempting fully vaccinated adults from self-isolation and introducing a 'test to release' scheme to support those employees not yet fully vaccinated," added Hawes.

The British government is expected to scrap isolation rules from Aug. 16 for those double-jabbed unless they develop symptoms of the coronavirus themselves.

Meanwhile, the government announced Wednesday that, from Aug. 2, passengers arriving from amber list countries who have been fully vaccinated in Europe and the United States will not have to quarantine or take a day eight test on arrival when entering England.

By reopening quarantine-free travel for travelers who have been fully vaccinated in European countries and the United States, "we're taking another step on the road to normality which will reunite friends and families and give UK businesses a boost", said Britain's Health Secretary Sajid Javid.

To bring life back to normal, countries such as Britain, China, Russia, the United States as well as the European Union have been racing against time to roll out coronavirus vaccines.

Source: xinhua

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Upon arriving to participate in the summit of the European Political Community, which includes around forty heads of state in Budapest, he said, "I look forward to sitting with the elected U.S. president and seeing how we will collectively ensure we meet challenges, including the threats from Russia and North Korea." He also noted that the strengthening of ties between Russia and North Korea poses a threat to the United States as well, according to reports from Agence France-Presse.

Before Trump's victory, Rutte expressed confidence that a united Washington would remain part of the defensive alliance, even if Trump became the 47th president of the United States. In an interview with German public broadcaster ZDF last Monday night, he stated that both Republicans and Democrats understand that NATO serves not only the security of Europe but also that of America. He added that both candidates are aware that the security of the United States is closely tied to NATO.

On Wednesday, NATO congratulated Trump on his victory but did not address the Ukrainian issue.

It is noteworthy that the relationship between the elected U.S. president and the defense alliance was not the best during his first term in the White House. Trump criticized NATO member states multiple times and even hinted at withdrawing from the alliance unless they increased their financial contributions.

Additionally, the issue of the Russian-Ukrainian war is one of the matters that complicate relations between the two sides, especially since Trump has repeatedly stated that he can end this ongoing conflict, which began in 2022, quickly. He implied that he had a peace plan between Kyiv and Moscow, while his vice president, JD Vance, revealed aspects of that plan, which stipulated Ukraine's commitment not to join NATO, thereby sending reassuring signals to the Russians.

Furthermore, many NATO member states in Europe fear that Trump might halt military aid to Ukraine after he previously criticized the U.S. for pouring funds into supporting Ukrainian President Volodymyr Zelensky.