UK car production fell 44% in August

SMM: according to reports, due to the decline in domestic orders and exports, British car production fell 44% in August, which is the second worst month since the whole factory returned to work.

In August, 51039 cars were produced in the UK, compared with 92153 in the same period in 2019, according to (SMMT), an association of British automakers and traders. Of this total, the output of cars used for export fell 41 per cent year-on-year to 43244 units, while the production of cars sold to the domestic car market fell 58 per cent year-on-year to 7795 units.

However, car production in the UK is usually low in August, and factories usually choose to cut production in the summer months and allow employees to take time off. The increase in production in 2019 was due to Brexit, with a number of car factories closing early in April, allowing time to adapt to the new trade terms, which continued to operate in August.

At present, the number of confirmed cases of novel coronavirus in the UK is increasing, and stricter social measures are being implemented all over the country. The auto industry is concerned that this will have an impact on sales, which are urgently needed to maintain factory production. Mike Hawes, chief executive of SMMT, said: "car companies are preparing for the second wave of the epidemic, and stricter social and commercial restrictions have brought more challenges to the restart of the auto industry."

Rishi Sunak, the British minister, announced on September 24th that an employment support scheme would be launched to help companies retain employees after the corporate unpaid leave scheme ends at the end of October.

In response, Hawes said: "the foundation of the British auto industry is strong and flexible and the measures announced by ministers yesterday are welcome and necessary." We are still waiting for more details on how these measures will apply to all enterprises and key large manufacturers. Companies need to retain technical jobs and maintain capital flows, and we may need more support to boost business and consumer confidence in the coming months of this year. "

He added that manufacturers and dealers needed flexible support measures to allow carmakers to reduce production to adapt to changing demand levels. From January to August this year, British car production fell by 40 per cent year-on-year, including the first blockade of the epidemic in March and April, with factories completely shut down for several weeks.

SMMT expects at least 13500 jobs in the UK auto industry to be cut this year and warns that as many as 1/6 jobs could be at risk in the future.