When will new cars bounce back?

When will new cars bounce back?

“Manufacturing has dropped by nearly a third, according to the Society of Motor Manufacturers and Traders (SMMT).” (News, 2022)

Car production hits an all-time low as manufacturers are under pressure to get creative due to devastating supply chain shortages.

Is this the new normal?

Sparse supermarket shelves, fuel prices and living costs skyrocketing, labour shortages, it’s a bleak reality for 2022. It’s no surprise that the motor industry is also facing the pressure of this post-pandemic, post Brexit-world.

How has the motor industry been hit?

UK manufacturers are currently faced with challenges to produce new vehicles due to rising energy costs and major shortages in semi-conductors and chips. The departure of Honda has reduced UK car production. Whilst other manufacturers like Vauxhall, now part of Stellantis, Toyota and Nissan have committed to the UK it’s unclear how the changes in the relationship with the EU will impact future investments.

For now, a spanner has been thrown in the well-oiled automotive supply chain. “Almost 100,000 fewer cars were built in the first three months of 2022 compared to last year.” (News, 2022)

Where does this leave your customers?

Rising fears of unhappy customers as drivers could face a wait of more than a year for some new models is understandable. Consumers are increasingly aware of the challenges and may be more understanding than you think. The motor industry is a robust community, and, when faced with challenges, we can come out with a leaner, meaner more functional attitude.

Our founder, Neil Addley gives his take on this new normal: “Whilst the challenges are apparent right now the sector has a habit of survival. To paraphrase Darwin, its not the survival of the fittest but the survival of the most able to adapt. Whilst the pace of change is disruptive, I am pretty sure we’ll see some real winners, and that is by no means limited to new entrants.”

Bibliography

News, B. (2022, April 28). UK car production drops as firms struggle to get parts. Retrieved from BBC news: www.bbc.co.uk/news/business-61248689,

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