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| British Automobile Production Decreased by 4.9 Percent in May Due to the Shortage of Component Suppl |
By:
xcd nhy |
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According to the statistics publicized by the Society of Motor Manufacturers and Traders in recent days that the British automobile production in 2011 May has decreased by 4.9 percent compared to the same period last year, dropping to 110 thousand. The accumulated automobile production in Britain from January to May 2011 has increased by 3.7 percent, amounting to 594 thousand. The CEO of the SMMT, Paul Everitt claimed that although there is a shortage in the supply of Japanese diesel turbocharger and other components, the car production in Britain in May has only decreased by 4.9 percent. It is understood that a majority of the cars produced in last month in Britain are targeted at the export market. The total number of British cars exported in May is 88 thousand, accounting for 80.7 percent of the total number of cars in Britain. While the British automobile production targeted in domestic market has decreased by 36.6 percent compared to the figure of the same period in last year. The number of cars dropped to 21 thousand which accounts for 19.3 percent of the total number of cars in Britain. Statistics have shown that among all the 110 thousand cars produced in Britain are 99 thousand cars designed as passenger cars. This figure marks a decrease of 4.9 percent compared to that of the same period in the previous year. On the other hand, the production of commercial cars in Britain is close to 10.2 thousand, decreased by 5 percent compared to the previous year. The British automobile manufacturing industry is confronting with survival crisis in the competition owning to the lacking of local component industrial chain. The biggest threat imposed to the survival of the British automobile manufacturing industry is the lacking of local component industrial chain. At the present stage, the British automobile manufacturing industry depends greatly on the component import from other countries. A lot of flaws and problems can be found from the industrial model of importing components from foreign countries. For example, the longer the supply chain is, the higher the freight will be and the more fluctuating the currency settlement will become. Usually, this will expose the enterprises to a higher cost risk. Although the British government has realized that it is an incorrect policy to neglect the manufacturing industry in the past several decades, it is not easy to recover and re-establish the local automobile component industrial chain. Influenced by the automobile component supply shortage as caused by the earthquake in Japan, the Toyota Company in Japan has announced several days ago to shut down temporary the assembly and engine making factories in Britain.
This event will affect the garrett turbocharger production |
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