Car production in July hits lowest level since 1956

Stock image of UK car production

Stock image of UK car production

UK car production fell sharply last month, marking the worst July performance for the industry since 1956, a trade group has said.

The global microchip shortage, staff being affected by the so-called pingdemic, and shutdowns meant just 53,438 cars were built in the month.

That was a drop of 37.6% compared to July last year, the Society of Motor Manufacturers and Traders (SMMT) said.

It comes as sales of second-hand vehicles are soaring.

Overall car production in the year to date is almost a fifth higher than during 2020 at 552,361 vehicles, but that is still 28.7% down on 2019 pre-pandemic levels.

UK car production graphic

UK car production graphic

SMMT boss Mike Hawes said the July figures “lay bare the extremely tough conditions UK car manufacturers continue to face”.

“While the impact of the ‘pingdemic’ will lessen as self-isolation rules change, the worldwide shortage of semiconductors

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Ferrari Hits a Bump – WSJ

Ferrari investors may have gotten too used to smooth driving.

The luxury sports-car maker isn’t pulling away from the challenges posed by the pandemic quite as effortlessly as some were hoping. Its shares fell 7% in New York Tuesday after the company said it would hit its 2022 financial targets a year late due to Covid-19. Ferrari delayed some spending last year; now it has worked through its delivery schedule enough to expect a knock-on impact on profits next year.

The selloff highlights just how high the stakes are when a stock fetches more than 40 times prospective earnings. If investors are spooked by some relatively minor post-pandemic grinding of gears, they may not be properly prepared for Ferrari’s move into the electric age—a process fraught with much greater risks for a brand based on engine noise.

Chairman John Elkann said last month that Ferrari would launch its first

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Rental car shortage hits Volusia County, nation

DAYTONA BEACH — None of the arriving passengers in line with reservations at the rental car counters at Daytona Beach International Airport on Friday was worried about leaving without a vehicle, but the shortage of rental cars unfolding nationally is still having a ripple effect in Volusia County.

“My wife reserved this one two months ago, but the prices are outrageous now,” said Mark Palmer, 62, of Sturbridge, Mass., his keys and paperwork in hand from Hertz. “We rented a small SUV for $400 for three days. We looked at something bigger, a Chevy Tahoe, but they wanted $800 (for the same amount of time).”

As the economic effects of the ongoing coronavirus pandemic continue to unfold, the latest impact is hitting passengers that are starting to return to the skies and the nation’s roadways amid the rollout of vaccines and the gradual reopening of the hard-hit U.S. travel industry.

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