UK automobile manufacturing declined -1.4% in November to 106,243 models, in accordance with the most recent figures issued in the present day by the Society of Motor Producers and Merchants (SMMT). Though a greater 12 months on 12 months efficiency than many different months in a difficult 2020, the autumn in output masks a very weak November 2019 when precautionary manufacturing unit shutdowns in anticipation of a possible ‘no deal’ Brexit on 31 October depressed output.
November noticed 1,501 fewer vehicles made than in the identical month final 12 months, as most of the components current all through a lot of 2020 conspired to dampen home orders, not least a second nationwide lockdown in England and subsequent financial and political turbulence. Export volumes have been flat, up simply 0.3% and equal to an increase of 310 models, boosted by shipments to key markets within the EU, Asia and the US.
Greater than eight in 10 (85.3%) vehicles inbuilt November have been constructed for export, highlighting the vital significance of free and truthful commerce with world markets to UK automobile makers.
Within the 11 months to November, whole UK automobile manufacturing is now down -31.0% in contrast with the identical interval in 2019, representing a lack of 380,809 fashions at a price of some £10.5 billion to the sector.1 This places the business on track to supply fewer than one million vehicles this 12 months for less than the second time for the reason that early eighties and going through a troublesome future with potential additional manufacturing losses amounting to £55.4 billion over the subsequent 5 years if the sector is compelled to commerce on WTO situations in a ‘no deal’ Brexit.2
Mike Hawes, SMMT Chief Government, stated,
One more decline for UK automobile manufacturing is in fact regarding, however not practically as regarding because the New Yr nightmare going through the automotive business if we don’t get a Brexit deal that works for the sector. With simply 9 days to go, the specter of ‘no deal’ is palpable and the sector, now additionally reeling from the most recent coronavirus resurgence, Tier 4 showroom lockdowns and disruption at vital UK ports, wants greater than ever the tariff-free buying and selling preparations on which our competitiveness is based.
It’s lastly make or break time, as being compelled to commerce on WTO phrases could be a hammer blow for a lot of automotive companies, staff and their households, so we should get a deal – and one which avoids the devastation of punitive tariffs for all automotive merchandise, from day one. For the long-term survival of UK Automotive, there’s fairly merely no different possibility.
Whereas any deal at any time earlier than 31 December is healthier than no deal in any respect, it’s now all however inconceivable for automotive companies to be prepared and lots of vital questions stay unanswered. Ought to an settlement be reached, it can want swift ratification by Parliaments, versatile guidelines of origin thresholds for hybrid autos and batteries and an appropriate section in interval to permit provide chains to adapt. Pressing readability, within the occasion of a deal, would even be wanted on proof of origin necessities to make sure qualification for tariff-free commerce from 1 January, in addition to a 12-month grace interval on provider declarations, with reciprocal facilitation measures by our European counterparts.
These measures are important to assist assure the long run well being of the British automotive sector, which is an important a part of the UK financial system, turning over an annual £78.9 billion and representing the nation’s greatest exporter of products, accounting for 13% of whole exports. It additionally invests greater than £3 billion annually, as commonplace, in automotive R&D and employs 180,000 individuals immediately in manufacturing – usually in excessive expert, excessive worth jobs, with the common wage 21% increased than the UK common.3
SOURCE: SMMT
