Supply chain pressures continue to weigh heavy on auto manufacturers

Richard Peberdy, UK head of automotive at KPMG, said:

“Supply chain pressures continue to weigh heavy on auto manufacturers as the wider economy edges closer towards recovery.

“Carmakers will be cursing a mix of factors stifling their ability to produce more vehicles, namely materials and labour shortages and increases to shipping costs. Manufacturers are absorbing the costs for now, but we could soon see price rises being passed on to consumers should problems persist, which runs the risk of dampening the sales recovery.

“Many carmakers find themselves in a bind between electric vehicles (EV) and traditional combustion engines. Despite some encouraging EV uptake among consumers, regular petrol cars are still popular because of their lower price point, with some remaining wariness over EV technology and reliance on charging. We can expect more calls from the industry for further government support to help produce the vehicles that will drive us towards a net-zero carbon future.”

ENDS

For media enquiries please contact:

Jonathan Burton – Citypress
T : +44 (0)161 235 0316 
E : KPMGIM@citypress.co.uk

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax, and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.