Car production collapses by 44.6%
Car production nosedived by 44.6% in the UK in August, according to the Society of Motor Manufacturers and Traders (SMMT), which reported that just 51,039 units rolled off factory lines as efforts to ramp up production stalled amid the coronavirus crisis.
Weak demand in key overseas markets was compounded by a significant fall in output for UK buyers. Production for UK buyers fell 58.3% in the month to just 7,795 units, while exports followed a similar pattern, declining by 41.1% with 43,244 vehicles produced for overseas markets.
Almost 85% of all cars built in Britain in August were destined for countries around the world, underlining the importance of this trade to the sector and UK economy. So far this year UK car production is down 40.2%, representing a loss of 348,821 units.
Mike Hawes, SMMT chief executive, said: “These are increasingly disturbing times for UK car makers and suppliers with the coronavirus crisis weighing heavily on the sector. Companies are bracing for a second wave with tighter social and business restrictions making the industry’s attempts to restart even more challenging.
“The UK industry is fundamentally strong and agile, and the measures announced yesterday by the Chancellor are welcome and essential, although we await more details of how they will work for all businesses and crucially large manufacturers. Companies need to retain skilled jobs and maintain cashflow and we may need more support to boost business and consumer confidence later this year. Moreover, with fewer than 100 days until the Brexit transition period ends, we need urgent agreement of an ambitious free trade deal with our largest market to avoid the second shock of crippling tariffs.”
