Facing one of the worst crisis, the British auto industry is staring at a production loss of more than 8 billion pounds. The outbreak of coronavius has already resulted in production cut by almost a third in March, taking it to its lowest level since 2009, sources said.
Auto sector, which occupies a significant position in British economy, being the country’s biggest exporter of goods and job provider to more than 800,000 people, has witnessed factories and dealerships closing from mid March. Globally, automakers have warned of the scale of the challenge affecting manufacturers already struggling to deal with factors like tougher emissions norms, falling diesel sales and the escalating cost of electrification and autonomous technology.
In Britain, volumes fell by an annual 37.6% to 78,767 vehicles in March and the sector, which made 1.3 million cars last year, faces a loss of more than 250,000 cars and vans, the Society of Motor Manufacturers and Traders (SMMT) said. "To get production lines rolling, we need a package of measures that supports the entire industry," said SMMT CEO Mike Hawes.
"This will include new workplace guidance, additional measures to ease cash flow and help furloughed colleagues back to work, as well as demand-side measures to help encourage customers back into the market." Even though the British government has introduced a number of schemes to support businesses but some firms say they need more help.
The total value of production lost between the shutdowns introduced in March and plants re-opening in mid-May stands at around 8.2 billion pounds, according to a forecast by AutoAnalysis. Carmakers hope to recoup at least some lost sales. Among the leading carmakers, the Aston Martin will open its Welsh factory next week, which is building its crucial first sport utility vehicle, and output at Bentley's factory is due for a phased restart from May 11.
Britain's biggest carmaker Jaguar Land Rover will restart production at one of its domestic car factories from May 18. Nissan, which operates Britain’s biggest car plant at its northern English Sunderland factory, will restart phased production in early June. The facility which manufactures Qashqai, Juke and Leaf models, had halted production on March 17.
