UK car production across the nation’s network of automotive plants was down by 95 per cent according to the latest figures, though industry insiders are hopeful that output can bounce back.
Though two thirds of the country’s car plants are back open, they are still running at reduced capacity as social distancing safety guidelines are met and reduced demand kicks in. Significantly Vauxhall’s Ellesmere Port and Jaguar Land Rover’s Castle Bromwich remain closed, however it should be expected that output for June will be a lot higher than the 5,000 cars which were produced in May.
Car production across the year is down 41.7 per cent compared to 2019, the equivalent of 230,000 fewer vehicles. With coronavirus lockdown regulations having a significant impact on the global economy, the Society of Motor Manufacturers and Traders have issued a stark warning that one in six car industry jobs could be lost unless the government intervenes.
Mike Hawes, SMMT chief executive, said, “May’s figures are yet more evidence of why the UK industry, like its global rivals, needs dedicated support to drive a successful restart. Government assistance so far has been vital in keeping many businesses afloat, but the job isn’t done. Measures to boost cashflow, including additional and tailored finance schemes, tax relief and business rates deferral would deliver immediate results when liquidity is most acute.
“We have to retain the highly skilled jobs the sector provides but also ensure the business conditions are competitive so we can unlock the investment that will drive long-term recovery - a green recovery - which is inextricably linked to the sector’s success.”
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