UK production heading for 1957 levels
UK car production fell 48.2% in June and is on course for the lowest output since 1957.
Just 56,594 units were made produced last month, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). It found that manufacturing for the domestic market was down by 63.8%, while production for export fell by 45%.
While June marked a vast improvement on April and May, when only a combined 5,511 cars were built, the performance rounded off the worst first six months for UK car production since 1954, with just 381,357 cars been built since January.
As a consequence of the crisis, at least 11,349 job cuts have already been announced across the industry, including manufacturing, supply chain and retail. Furthermore, new analysis suggests car production losses could total 1.46 million units by 2025 – worth just over £40bn – if no FTA is in place by the end of 2020, forcing the sector to trade on WTO terms with full tariffs applied.
Mike Hawes, SMMT chief executive, said: “These figures are yet more grim reading for the industry and its workforce, and reveal the difficulties all automotive businesses face as they try to restart while tackling sectoral challenges like no other. Recovery is difficult for all companies, but automotive is unique in facing immense technological shifts, business uncertainty and a fundamental change to trading conditions while dealing with coronavirus.
“The critical importance of an EU-UK FTA is self-evident for UK automotive. Our factories were once set to make two million cars in 2020 but could now produce less than half that number, a result of the devastating effects of the pandemic on top of already challenging market conditions and years of Brexit uncertainty. This industry has demonstrated its inherent competitiveness and global excellence over the past decade. Its long-term future now depends on securing a good deal and a long-term strategy that supports an industry on which so many thousands of jobs across the country depend.”
Meanwhile, the latest independent production outlook commissioned by SMMT expects just over 880,000 cars to be produced in the UK this year – some 32% lower than made in 2019 and 30% less than anticipated in January pre-crisis. If realised, this would be the lowest total since 1957.
