UK car manufacturing down -99.7% in April

Coronavirus all but stops car production entirely for the month, with only 197 units made; car makers turn out 700,000 pieces of PPE to support healthcare workers

April car production was basically non-existant in the UK. The country’s output for the month was the lowest since the Second World War, down -99.7 per cent, according to Society of Motor Manufacturers and Traders (SMMT) figures. The coronavirus lockdown forced plants to close, meaning just 197 premium, luxury and sports cars left factory gates in the month. These were models that had been assembled prior to shutdowns with only finishing touches needed.

Instead of making cars for the UK and global export markets, many manufacturers refocused efforts on producing personal protective equipment (PPE), including face shields, visors and medical gowns for use by healthcare professionals, the SMMT states. It says UK car makers have now made some 711,495 pieces of PPE, with others helping make medical equipment, including high-tech ventilators as part of the Ventilator Challenge UK Consortium.

Source: SMMT

Output for both the domestic and overseas markets was severely curtailed in the month, with 152 cars built for export and 45 for customers in the UK. The exceptional month follows a particularly weak April 2019, when volumes fell -44.5 per cent year on year due to temporary shutdowns as manufacturers sought to mitigate the impact of an expected end-March Brexit.

The news comes as the latest independent analysis by conducted by Auto Analysis in May 2020 suggests annual UK car production could fall below one million units in 2020, which would represent lower volumes than in 2009 and possibly a third lower than expected in January pre-crisis.

The SMMT continued to say that though the UK’s 168,000 automotive manufacturing employees are now starting to return to work. Around half of the country’s car and engine plants are set to be operating by the end of May. Factories are scaling up production along different timescales and, with strict social distancing measures in place, output initially will be restricted with a predicted loss of up to some 400,000 units by year end, compared with the January outlook. This will represent a cost to industry of up to £12.5 billion at factory gate prices, the SMMT adds.

Mike Hawes, SMMT chief executive, said: “With the UK’s car plants mothballed in April, these figures aren’t surprising but they do highlight the tremendous challenge the industry faces, with revenues effectively slashed to zero last month. Manufacturers are starting to emerge from prolonged shutdown into a very uncertain world and ramping up production will be a gradual process, so we need government to work with us to accelerate this fundamentally strong sector’s recovery, stimulate investment and safeguard jobs. Support to get all businesses through this short-term turmoil will ensure the UK’s many globally-renowned brands can continue to make the products that remain so desirable to consumers the world over and, in turn, help deliver long-term prosperity for Britain.”