UK car output falls to lowest September level since 1982

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FILE PHOTO: A traffic jam is seen as cars head towards the approach tunnel of Heathrow Airport, west London

LONDON (Reuters) - British car production fell by 41.5% year-on-year last month to its lowest level for a September since 1982, according to an industry body, as a lack of semiconductor chips continues to disrupt the sector worldwide.

A total of 67,169 cars rolled off British factory lines last month, according to data from the Society of Motor Manufacturers and Traders (SMMT).

In a members' survey, more than eight in ten have been negatively impacted by the chip shortage, hit by factors such as cost rises and lower orders. Redundancies and reduced opening hours have been used by some to mitigate the problem.

"The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production," SMMT Chief Executive Mike Hawes said.

Hawes said more could have been done in Wednesday's government budget announcement.

"It missed the opportunity to offer meaningful short-term support given COVID-related supply constraints and rising energy bills."

(Reporting by Costas Pitas, editing by Andy Bruce)

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