The worst year for UK car factories in 65 years was 2021. In addition to the problems of lack of microchips, logistical problems, the COVID-19 pandemic and the drop in domestic demand, the closure of the Honda factory was added.
The November 5th will be worthy to remember in the United Kingdom, but 2021 was decidedly not a good year for its auto industry. To all the already known problems (pandemic, logistical problems, lack of microchips…) was added the impact of Honda’s dismissal, after almost 30 years, by closing its Swindon factory.
The Japanese did not wait for a definitive agreement on account of “Brexit” with the European Union, they did their numbers and considered that it made no sense to keep the British factory open. They gave notice two years in advance, and finally in the middle of last year the plant changed hands and part of the production has gone to Japan.
Almost a quarter of the crash is explained only by this closure
Let’s see the figures. In 2021 they were manufactured in the island country 859,575 passenger cars, that is, 6.7% less than in 2020. In some single month, such as October, activity had fallen to levels only higher than 1956 (707,594 in that year), but finally for a full year it has been the worst in 65 years.
Honda was building the Civic hatchback as a world exclusive until the closure of Swindon
Domestic market demand (England, Wales and Scotland) fell by 10.6% to 153,749 units. Regarding exports, which were 82.1% of what was produced, fell less, 5.8%, staying at 705,826 units. Honda manufactured both for the domestic market and for export.
“Brexit”, for practical purposes, has meant more customs procedures and logistical difficulties, but tariffs with the EU were avoided with a trade agreement
But more striking is the comparison with 2019, when 1,303,135 units had been manufactured, so a little more and in 2021 the drop is almost half. Only in 2020 the bump was 34%. The European Union was the main customer for British exports, 55% or 388,249 units. The continent’s thirst for cars barely dropped 3%.
A good figure among so many bad, the production of electric vehicles increased by 72% in volume, hybrids grew by 16% in a context of decline. It’s more, the production of electric cars, plug-in hybrids and non-plug-in was a record, 224,011 cars, exceeding a quarter of everything produced (26.1%).
Electrification is one of the main hopes of British industry after its biggest crisis since the 1990s
UK Commercial Vehicle Production in 2021 – Source: SMMT
By 2022 there is good vibes
Representatives of the British motor industry, the SMMT, are optimistic about 2022 and they hope to return to the million units. First, they believe that the lack of microchips will ease this year. Second, the increased production of electrified cars will help the total.
Investments worth 4.9 billion pounds have been announced, the largest volume since 2013 -before the “Brexit” referendum-. The last to announce investments has been Bentley, throughout the decade it will inject 2,500 million pounds to electrify its range and modernize the factory. All large factories depend on foreign companies and capital.
At the time of closing this information, the United Kingdom will return to normal again – coinciding with a moment of very low popularity of Prime Minister Boris Johnson due to the “party gate”– and the effects of Omicron will fade as well. Everything indicates that 2022 will not be another Annus horribilis for the British.
UK Engine Production in 2021 – Source: SMMT
During the first half of the year the British were subjected to many restrictions due to the COVID-19 pandemic until the arrival of the “freedom-day”, on July 19, which practically meant a return to normality until the arrival of the famous Omicron variant. Closures scared customers away and quarantines and isolations affected the workforceto.
As for the Commercial Vehicles, 2021 was the second worst year since 1933, the worst year in between was 2020. Compared to the first year of the pandemic, production grew by 11.3%, to 73,600 units, mainly due to the increase in domestic demand (+27 .3%), given that 51.2% of the commercial ones are exported -fundamentally to the EU- and the rest remain in the archipelago.
As for the production of engines, also fell, 1,641,881 propellants or 10.8% less compared to 2020. Domestic demand fell very little (-3.6%), but where the impact was most noticeable was in the drop in exports -the 57 .8% of its production-, this falling by 15.4%.