Currently reading: SMMT predicts 'severe' coronavirus impact on UK manufacturing
New car output fell 0.8% in February but a prolonged shutdown will bring about a much steeper drop
Felix Page Autocar writer
News
2 mins read
27 March 2020

British new car production fell only slightly in February, but the SMMT has warned of a much sharper drop in output as a result of the coronavirus outbreak.

Figures released today by the SMMT, the UK motor industry's body, show that 122,171 new cars were built last month, a drop of 0.8% compared with January. The fall has been attributed by the SMMT to “slower demand in key global export markets”. 

Reduced demand from the US and Asia meant new cars built for export fell by 3.1% to fewer than 95,000 units, despite a 3.6% increase in units shipped to the EU. 

However, the figures were bolstered by a resurgence in domestic demand, which climbed by a significant 7.8%, with 27,172 cars built for the home market. Overall, new car production in February fell 1.5% year on year. 

The SMMT said the figures come “at a time of unprecedented challenge for the UK and its automotive industry”, as nearly all British vehicle manufacturers have paused production in an effort to stem the spread of the coronavirus. 

The organisation estimates that the shutdown could mean the UK produces 200,000 fewer cars in 2020 than in 2019 - a drop of -18% - but has warned that the impact could be “far more severe” if the shutdown continues for several months. The government must, the SMMT said, accelerate access to emergency financial support for all businesses.

SMMT chief executive Mike Hawes said: “Despite the myriad global challenges the UK automotive industry has faced in recent times, it remains fundamentally strong and February’s figures reflect that. However, these figures also reflect the calm before the storm.

“With UK car plants now effectively on national shutdown and many global markets closed, the outlook is of deep concern. We wholeheartedly welcome government’s extraordinary package of emergency support for businesses and workers, but this must get through to businesses now. 

“If we’re to keep this sector alive and in a position to help Britain get back on its feet, we urgently need funding to be released, additional measures to ease pressure on cashflow and clarity on how employment support measures will work.”

Many vehicle manufacturers, parts suppliers and engineering firms based in the UK have pledged their support to helping sustain the NHS through the Covid-19 outbreak, offering to build medical ventilators, maintain emergency vehicles and transport key workers. 

Read more

Coronavirus: What motorists need to know​

Coronavirus and the car world: further UK plant closures

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8

27 March 2020

Factory shutdowns.

PCP arrears.

Consumer debt and unemployment.

Once this Coronavirus is over there will be a long slow haul back to normality. Getting a new car will be way down the list if people's priorities.

Expect major restructuring in the world wide car industry.

 

 

27 March 2020

The SMMT came that conclusion, huh?

 How very clever of them. 

27 March 2020
Kamelo wrote:

The SMMT came that conclusion, huh?

 How very clever of them. 

Apparently SMMT have dropped their uncertainty around Brexit excuse now and it's due to global demand. Whenever I mentioned due to global demand over the past three years, the remoaners would reply to denounce it. It's a funny old world.

 

 

27 March 2020

Sorry SMMT, i think the industry could do with something rather more constructive. No doubt someone some where is getting paid a lot of money to say 'Coronavirus likely to Affect (insert anything you wish) ..... or some such words of 'wisdom'. It is when we get to the other end of this where problems will arise. However there is one unknown factor never before experienced in a recession. In this situation no one irrespective of income and wralth can spend on anything much other than food and that will help with savings for those still in a job. so there may be a bounce of delayed/pent up demand? 

27 March 2020

Worldwide problem for every service and manufacturing sector,the ironic thing is it started in a Chinease province ,was confined to Wuhan and China should get back on to stream quickly,very unlike the rest of the WorldI fear,which will be a slower comeback with many casualities along the path including Human and Business.

27 March 2020

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27 March 2020

I'm not supporting Brexit, but the results of the Covid-19 crisis on UK car manufacturing will be a 100 times more damaging than a no-deal Brexit would have been. VW is burning 2.2 billion dollars a day, & has said that when the crisis is over it will certainly have to cut jobs, & since Bentley doesn't make any money it will be the first company they get rid of. JLR has been on shaky ground for some time now so Tata will wanna get rid of it. The French government will rescue PSA & Renault but that help will obviously not cover Vauxhall or Nissan. Toyota's market share in Europe will disappear, & BMW will have to reorganize too. Smaller companies like Aston Martin & Morgan could also be gone by the end of the year.

27 March 2020

That's strange. 

I thought the fact that every car showroom in the country is closed was going to lead to a boom in sales. 

 

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