UK car output down 1.4% in November | Automotive Industry News

November’s modest general decline to UK automotive output masks a very weak November 2019 when precautionary manufacturing unit shutdowns in anticipation of a possible ‘no deal’ Brexit depressed output

UK automotive manufacturing declined by 1.4% in November to 106,243 items, in accordance with the most recent figures issued by the Society of Motor Producers and Merchants (SMMT). November’s drop leaves year-to-date output down 31% on the identical interval final 12 months because the trade confronted decimated markets earlier within the 12 months because of the Covid pandemic.

The SMMT additionally known as on Brexit negotiators (the UK and EU are in last-minute talks to do a free commerce deal and keep away from default WTO tariffs from 1st January) to ‘seal the deal’ earlier than Christmas to keep away from ‘irrevocable injury of tariffs to important automotive sector and jobs’.

November noticed 1,501 fewer vehicles made than in the identical month final 12 months, as lots of the elements 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 had been flat, up simply 0.3% and equal to an increase of 310 items, boosted by shipments to key markets within the EU, Asia and the US.

The SMMT famous that greater than eight in 10 (85.3%) vehicles inbuilt November had been constructed for export, highlighting the important significance of free and truthful commerce with international markets to UK automotive makers.

Within the 11 months to November, complete UK automotive manufacturing is now down 31.0% in contrast with the identical interval in 2019, representing a lack of 380,809 fashions at a value of some GBP10.5 billion to the sector.

The SMMT says this places the trade on target to supply fewer than 1,000,000 vehicles this 12 months for under the second time for the reason that early eighties and going through a tricky future with potential additional manufacturing losses amounting to GBP55.4 billion over the subsequent 5 years if the sector is pressured to commerce on WTO circumstances in a ‘no deal’ Brexit.

Mike Hawes, SMMT Chief Govt, mentioned: “Yet one more decline for UK automotive manufacturing is in fact regarding, however not almost as regarding because the New 12 months nightmare going through the automotive trade 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 important 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 pressured to commerce on WTO phrases could be a hammer blow for a lot of automotive companies, employees 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.”

The SMMT says that ought to a UK-EU settlement be reached, it would 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 the UK’s  European counterparts.