UK August car production slumps 44% as Covid restrictions hit demand
By Frank Prenesti
Date: Friday 25 Sep 2020
(Sharecast News) - UK car production almost halved in August, official figures showed as the coronavirus pandemic and seasonal factory shutdowns took their toll.
Figures produced by the Society of Motor Manufacturers and Traders (SMMT) revealed that output slumped 44% year on year to 51,000 vehicles. August is traditionally a slower month due to summer holiday factory shutdowns.
Year-to-date production was down 40.2% at 518,000 units, the SMMT added. The fall was split between 46% for the home market and 38.8% for international buyers. Car makers have lost more than £9.5bn due to Covid-19, while 13,500 jobs across the sector have been cut.
The news comes as the UK braces for a second wave of coronavirus, with local lockdowns in place across parts of the country and tighter social and business restrictions to curb the rate of transmission. Finance Minister Rishi Sunak was forced to scrap his planned Autumn Budget and on Thursday unveiled new wage support measures.
"Consequently, assistance for sectors such as automotive, where many firms cannot operate at full speed, is now critical and the Job Support Scheme, as well as the other financial measures announced yesterday, come as welcome news," the SMMT said.
"Flexible measures to support short time working and cashflow are essential for automotive businesses while market demand and production capacity remain diminished."
SMMT chief executive Mike Hawes said tighter social and business restrictions were 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."
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