Car production plunges as surge in cases slams breaks on sector recovery
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Car production plunged again in August, falling 44.6 per cent year on year as factory output stalled amid ongoing disruption caused by the coronavirus crisis.
Just 51,039 models were built last month, down from 85,000 in July, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Weaker demand for British-built cars in overseas vehicles compounded the fall, with exports declining 41.1 per cent.
For the year as a whole, output is down 40.2 per cent, a loss of 348,821 units.
In total, the industry has lost £9.5bn in lost production, while at least 13,500 jobs in the automotive sector have already been lost.
A recent study by the SMMT found that without additional sector support one in every six auto jobs could be lost when the new job support scheme ends.
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Mike Hawes, the body’s chief exec, 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.”
He welcomed today’s new measures, but said that the sector would await further details of how they would work for large manufacturers.
With the UK’s departure from the EU now just months away, Hawes also reiterated the importance of a free trade for the battered sector.
Last week 23 auto industry associations, including the SMMT and the European Automobile Manufacturers’ Association (ACEA) joined forces to warn that warned a no-deal scenario could spark a €110bn (£101.5bn) black hole in trade over the next five years.