Pingdemic hampers rebound in auto production Business News

The auto industry is now warning that the so-called pingemia and supply shortages are jeopardizing the ‘rebound’ of the UK auto sector, and says it would ‘welcome’ an earlier easing of self-isolation rules.

The Society of Motor Manufacturers and Traders (SMMT) reports ‘anecdotal’ evidence from UK component manufacturers suggesting absenteeism rates after being ‘screwed’ by the NHS Covid app as high as 30%, and 5% or more among the main manufacturers.

Nissan, which operates Britain’s largest auto plant in Sunderland, has previously raised concerns about the plight of its staff and the threat it poses to production and exports.

A flexible and versatile workforce can face a number of challenges; the question is whether ‘pingemia’ or even a stronger third wave of Covid will set back an already modest recovery.

Mike Hawes, CEO of SMMT, said bringing forward the date on which self-isolation is no longer automatically required for those vaccinated from August 16 “would help”, adding that “the government is aware of our concerns. “: The date” should be brought forward if possible “.

In a moderate presentation, the SMMT fears that the industry is still “in the eye of the storm” and that a global semiconductor shortage, which has already hit smartphones and other home electronics, is also slowing down the trend. recovery that is not as rigorous as the industry. had hoped.

There are on average 1,500 chips controlling the engine and other functions of an average new car, and an interruption in their supply would render a car unusable.

The automotive industry normally absorbs around 15% of the world’s semiconductor production.

The UK auto industry lost around 300,000 cars or £ 8.5 billion in value.

Overall, UK factories produced 498,923 cars in the first half of the year, 40% below the five-year average before the pandemic, with most of the production (around 80%) going to export, and with the EU as the largest single market.