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UK car production plunged in March to lowest level since
2009
UK car production plunged by more than a third in March to
its lowest since 2009 as the coronavirus pandemic forced factories to close in
an unprecedented crisis for the industry.
Just 78,767 vehicles left factory gates in the month, some 47,428 fewer than the
same period in the previous year, according to the Society of Motor
Manufacturers and Traders (SMMT), the sector’s lobby group.
It was the worst March since 2009, when the global financial crisis caused
demand to plunge. That contributed to the worst quarter since 2010.
The British car industry was already struggling with uncertainty over Brexit
that had caused an investment freeze, on top of the global turmoil caused by
weakness in Chinese sales and controversy over emissions cheating. At the same
time, carmakers needed to make heavy investments in electric vehicle technology
to meet new emissions rules.
The addition of the coronavirus pandemic has added yet another financial
challenge. German carmakers Volkswagen and Mercedes-Benz owner Daimler reported
large hits to sales on Wednesday, mirroring the travails of owners of large UK
plants including Peugeot, Nissan and Jaguar Land Rover owner Tata Motors.
Mike Hawes, SMMT chief executive, said: “UK automotive is fundamentally strong
but, as these figures show, it is being tested like never before, with each week
of shutdown costing the sector and economy billions.
“Government emergency measures are helping keep many companies afloat and
thousands of people in jobs, but liquidity remains a major concern and will
become even more stretched as the industry begins to restart.
The UK industry faces a cost of £8.2bn – equivalent to a fifth of pre-crisis
turnover – if plants can reopen around the middle of May, according to new
forecasts by Auto Analysis, a consultancy.
March production started mostly as normal in the UK, although factory closures
in China, Italy and across Europe had disrupted supply chains. However, by the
end of the month the rapid spread of the coronavirus had forced every large car
factory to close. April production is likely to have been the lowest for
decades, given ongoing shutdowns.
Many UK carmakers are planning to return to work around the middle of May, with
new physical distancing measures that range from taping off toilets and break
areas to checking employees’ temperatures every day.
Jaguar Land Rover, the UK’s biggest carmaker, plans to gradually reopen some
factories on 18 May. Aston Martin Lagonda said it would reopen its factory in St
Athan, south Wales, on 5 May, while fellow luxury carmaker Bentley will begin a
phased restart on 11 May. Vauxhall, owned by Peugeot SA, also plans to restart
production at its Ellesmere Port plant, although it has not yet announced a
date.