UK car manufacturing latest | Industry - Car News Jul 2020

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11:09 Wednesday 01 Jul 2020

The UK car manufacturing sector produced just 5,314 vehicles in May, a drop of -95.4% compared to the same month last year.

Output was significantly more than at the height of lockdown in April, when just 197 cars were built, but it still marked the worst May since 1946.  With retailers not reopening until this month, just 1,054 of the vehicles built in the UK in May were destined for the domestic market, with the rest going for export.

So far this year, the UK’s car manufacturing output has contracted by -41.7% overall, and is expected to produce fewer than a million units in 2020.

With new restrictions and loss of revenue, the remainder of this year is likely to be a challenging one for automotive businesses, with one-in-six jobs in the sector at risk of redundancy when the Government furlough scheme ends in November. 

Mike Hawes, Chief Exectuive of the Society of Motor Manufacturers and Traderss, explained, “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.”


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