According to the latest research, UK car production has decreased by 45 per cent amidst the coronavirus pandemic, as the automotive sector reaches a loss of £9.5 billion in production.
Factory output has stalled due to the continual disturbance of the pandemic. In August, only 51,039 vehicles were created, which is a significant decrease from 85,000 in July, according to the Society of Motor Manufacturers and Traders (SMMT).
Additionally, there was less demand for British built cars overseas, which contributed to the fall. Exports declined by 41.1 per cent.
Moreover, the output for this year is down 40.2 per cent, meaning a loss of 348,821 units. Plus, 13,500 employees in the automotive sector have been made redundant.
Without more support for the automotive sector, one in every six employees could face redundancy when the new Job Support Scheme ends in six months, according to the SMMT.
“These are increasingly disturbing times for UK carmakers and suppliers with the coronavirus crisis weighing heavily on the sector”, says Mike Hawes, the Chief Executive of SMMT.
“Companies are bracing for a second wave with tighter social and business restrictions making the industry’s attempts to restart even more challenging.”
Despite welcoming the measures put in place on 24 September, to aim to keep employees in work, Hawes states that the sector needs to hold on until further details are released on how large manufacturers can get more workers back working safely.
Hawes also reemphasised the importance of free trade for the automotive sector, when the transition period after Brexit comes to an end.
The SMMT, the European Automobile Manufacturers’ Association (ACEA), and 23 other auto industry associations rallied together the week commencing 14 September, to warn that a no-deal scenario could ignite a £101.5 billion (110 billion euros) “black hole in trade over the next five years.”