Car production fell to one-third in 2020, the lowest production in 26 years

New car production in the UK fell by almost one-third in 2020 to less than one million units. This was the biggest plunge since the financial crisis and the lowest total production since 1984. New numbers are revealed today.

Industry bosses say about 10,000 jobs have been lost in the sector, and more jobs could continue as more jobs are declared and the government’s furlough plan ends. I’m predicting.

The number of vehicles produced decreased by 29.3% from the previous year to 920,928 units. The loss of 382,207 vehicles cost the sector £ 10.5 billion.

The significant decline in car manufacturing last year was primarily the result of the coronavirus crisis and most of the uncertainties in 2020 regarding Brexit trade agreements.

Honda Swindon, the fifth-largest car maker in the UK, closed in 2021 and had about 70,000 cars last year as other plants, including the Elsmereport plant in Vauxhall, were potentially at risk. It manufactures cars, and it seems unlikely that this year’s production will exceed 1,000. ..

British car makers have reached their lowest levels in 26 years. Production of new models in 2020 decreased to 920,928 units. This is the lowest annual production since 1984.

SMMT’s boss confirmed that a 2.3% drop in car production in December ended the “horrible year” in the sector.

Mike Hawes, CEO of SMMT, estimated that there were about 10,000 “declared” unemployment by automakers and businesses in the supply chain, but this number could increase in the coming months. I warned that there is.

Throughout 2020, manufacturing will experience “serious turmoil,” blockades and social distance measures will limit factory production, Brexit uncertainty continues until Christmas Eve, and Britain will “no trade.” “Seriously avoiding the scenario,” he said, at the expense of all overseas demand. In the sector.

Despite the impact of the pandemic on trade, more than eight out of every ten cars manufactured in the UK (accounting for a total of 749,038) have been shipped abroad, leaving the EU still the largest export destination. It accounts for 53.5% of the total. The motor built here.

Total production of battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and hybrid electric vehicles (HEVs) increased to 18.8% of all vehicles manufactured in the country, up from 14.8% in the previous year.

Last year, just under 173,000 alternative fuel vehicles were manufactured and 4 out of 5 were exported.

Covid’s pandemic has had a huge impact on car makers. Not only was the factory closed for several months from the end of March, but due to social distance requirements the site was unable to return to full production.

Numbers released Thursday morning confirmed that December’s 2.3% decline in car production ended the sector’s “horrible year.”

Boss described 2020 as a “very difficult year”, but 2021 despite exporters facing additional costs due to coronavirus vaccines, technology clarifications and Brexit’s final trade deal. Said he had an optimistic view.

Records show that last time, car production fell by about 30% in the midst of the 2009 financial crisis.

Records show that more than eight out of every ten cars manufactured in the UK are exported and more than half are sent to EU countries.

Hawes described 2020 as a “very difficult year,” despite exporters facing additional costs due to coronavirus vaccines, technology clarifications, and Brexit’s final trade deal. , Said to be optimistic in 2021.

That said, car manufacturing could be hit further this year, raising concerns about production sites across the country.

Honda’s Swindon plant, which produces the Civic hatchback, will be completely closed in July, as confirmed by a Japanese company a year ago.

And more recently, the boss of Vauxhall’s new parent group, Stellantis, has emphasized that the future of the Elsmereport facility is also unsafe.

Last week, Carlos Tavares, the boss of the newly merged brand that combined Groupe PSA and FCA Automobiles, said the fate of the company’s Astra manufacturing plant in the northwest would be determined “within a few weeks.”

In the worst-case scenario, this could wipe out more than 100,000 new cars from the books in 2021, based on the low power of last 26 years.

Honda Swindon produced 69,366 vehicles last year. This is about 40,000 less than in 2019.

The Swindon plant will be closed in July and Civic production will leave the UK.

The Vauxhall boss recently said the future of the Elsmereport plant, where Astra is being built, will be determined “within a few weeks.”

Mike Hoes commented on the downturn in production, saying: ‘These numbers are the worst of the generation and reflect the devastating impact of a pandemic on UK car production.

“The industry is facing 2021 and is more optimistic, but vaccines are being deployed and it is clear how to trade with Europe, the largest market.

“The immediate challenge is to adapt to new conditions, overcome additional customs burdens, and regain global competitiveness while achieving zero-emission transportation.”

Jaguar Land Rover retailed the status of the UK’s largest car maker, although production fell by almost 37% in 2020.

Jaguar Land Rover maintained its position as the UK’s largest automaker, but production of 243,908 cars at its three manufacturing sites fell 37% from last year’s production.

Mini-Oxford had the most stable results, but in 2020 the number of completed assembly lines was 21% less than in the previous year.

SMMT also confirmed that the Nissan Qashqai is the most mass-produced car for the export market.

According to independent forecasts, UK car production will partially recover in 2021 to reach 1 million units, but Hawes said the virus’s continued impact, showroom reopening speed, and manufacturers’ new deals. He said it depends heavily on how quickly he can respond to the contract. The relationship with the EU, which he described as “much more complicated”.

He hoped that production today would reflect the “lowest decline,” but added that significant investment would be required to return to the 1.7 million figures reported in 2016.

The Nissan Qashqai (pictured right) was the most sought-after British car for export.

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Car production fell to one-third in 2020, the lowest production in 26 years

Source link Car production fell to one-third in 2020, the lowest production in 26 years

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