Car makers hit by pandemic-related chip and staff shortages, and the closure of a major car plant.
Car production in the UK last year fell to its lowest level since 1956, according to figures from the Society of Motor Manufacturers and Traders.It said there was optimism for the future, with the announcement of new investment worth nearly £5bn.
The main reason for the decline, the SMMT said, was a severe shortage of semiconductors, or computer chips. Car production was already falling, and Brexit uncertainty was making manufacturers reluctant to invest in Britain - at a time when they were making big plans for a new generation of electric vehicles.
Nevertheless, new investment is now coming in, and that momentum now has to be sustained if the UK is truly to become a force in the new market for electric vehicles.Despite the general malaise in the industry, meanwhile, production of electric and hybrid cars rose by nearly 30% - and accounted for nearly a quarter of all the cars built.
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