8:18 am, October 4, 2022
The ongoing energy crisis could cause further car production problems, analysts have forecast.
S&P Global says that car production in Europe could be slashed by 15 per cent this winter, as the automotive industry struggles with a shortage of gas due to the war in Ukraine and stoppages in the Nordstream pipeline.
The analyst firm’s report entitled ‘Energy rationing could hit the brakes on European auto production’ reveals there could be 70bn cubic metres (bcm) of gas shortfall in the next month.
S&P Global said: ‘Of this a disproportionate amount may fall on European industry, including automakers and auto suppliers, given consumers in many countries enjoy strong protections against mandatory cuts in [household] energy use.’
Car production would have to fall by around 900,000 units due to gas rationing by carmakers.
Last month, the Society of Motor Manufacturers and Traders revealed UK car production had risen for the fourth consecutive month but that record energy costs threatened recovery.
Despite the recent run of improved output from British factories, total output has been down significantly from pre-Covid times.
Latest production outlook by AutoAnalysis forecasts 866,000 units for 2022 while last year was 859,575.
Before that, 1986 was the last year output fell below 1m units.
