Automobile production fell by a third in 2020 to its lowest level in 36 years

UK automobile manufacturing fell by almost a third to less than 1 million vehicles in 2020 – the biggest slump since the beginning of the year since the financial crisis and the lowest total output since 1984, new figures today show.

Industry leaders said around 10,000 jobs have been lost in the industry to date, and predict more may follow as companies declare more layoffs and the vacation program ends.

Compared to the previous year, production fell by 29.3 percent to 920,928 vehicles. The loss of 382,207 vehicles cost the sector £ 10.5 billion.

The significant decline in automotive manufacturing last year was primarily due to the coronavirus crisis and was associated with uncertainty about a Brexit trade agreement for most of 2020.

British automakers hit 36-year low: New model production fell to 920,928 units in 2020 – the lowest annual production figure since 1984

And with Honda Swindon – the UK’s fifth largest automaker, which produced nearly 70,000 vehicles last year – due to its closure in 2021 and other potentially vulnerable factories – including the Ellesmere Port plant in Vauxhall – the likelihood of production could exceed 1,000. 000 units will be affected this year.

The SMMT confirmed Thursday that a 2.3 percent decline in automobile production in December rounded off a “terrible year” for the sector.

Mike Hawes, CEO of SMMT, estimated the “declared” job losses by automakers and companies in the supply chain at around 10,000, but warned that the number could increase in the coming months.

He said manufacturing operations had been “severely disrupted” throughout 2020, with lockdowns and social distancing measures restricting factory production, while uncertainty over Brexit continued until Christmas Eve – when Britain “decisively avoided a no-deal scenario” – and depressed overseas demand took a toll on the sector.

Despite the impact of the global pandemic on trade, more than eight in ten cars made in the UK – 749,038 in total – were shipped overseas, with the EU remaining the top export destination at 53.5 percent, with engines built here.

The combined production of battery electric (BEV), plug-hybrid (PHEV) and hybrid vehicles (HEV) rose from 14.8 percent in the previous year to 18.8 percent of all cars manufactured in this country.

Last year almost 173,000 vehicles were built using alternative fuel, four of five of which were exported.

The Covid pandemic has had a huge impact on automakers. With factories closed for months from the end of March, the sites were unable to return to full production due to social distancing requirements

Figures released on Thursday morning confirmed that a 2.3% decline in automobile production in December rounded off a “terrible year” for the sector

The bosses called 2020 a “very challenging year” but he said there is optimism for 2021 due to the coronavirus vaccine, more clarity on technology and the latest Brexit trade deal, although exporters are facing additional costs

The last time automobile production fell by around 30% was the peak of the financial crisis in 2009, records show

According to records, more than 8 out of 10 cars built in the UK are exported and more than half are shipped to EU countries

Mr Hawes described 2020 as a “very challenging year,” but said that due to the coronavirus vaccine, the clarity of technology and the benefits of the Brexit trade deal in the last ditch, there is optimism for 2021, although exporters have faced some additional costs .

However, vehicle manufacturing could take more hits this year, with concerns mounting for some manufacturing facilities across the country.

Honda’s Swindon factory, which makes the Civic hatchback, will be closed for good this summer – as the Japanese company confirmed a year ago.

More recently, the heads of Vauxhall’s new parent company, Stellantis, have stressed that the future of the Ellesmere Port facility is also not certain.

Carlos Tavares, head of the newly merged brand that combines Groupe PSA and FCA Automobiles, said earlier this month the fate of the company’s Astra plant in the northwest would be decided “within a few weeks.”

In the worst-case scenario, over 100,000 new cars could be wiped off the books every year, based on the 36-year lows last year.

Honda Swindon produced 69,366 vehicles last year, nearly 40,000 fewer than in 2019

The plant in Swindon is due to close in July. The Civic is produced outside the UK

Vauxhall bosses recently said that the future of the Ellesmere Port factory – where the Astra will be built – will be decided “within weeks”.

Reports of an increase in positive Covid cases at Jaguar Land Rover’s Solihull plant in recent weeks, which required the relocation of workers from the Castle Bromwich plant, should start having an impact on production output as early as January.

Commenting on the slump in the manufacturing sector, Mike Hawes said, “These numbers, the worst in a generation, reflect the devastating impact of the pandemic on UK auto production. Covid lockdowns put pressure on demand, shut down facilities and threatened lives and livelihoods.

‘The industry is more optimistic about 2021, but with the launch of a vaccine and clarity on how we are dealing with Europe, which remains by far our largest market.

“The immediate challenge is to adapt to the new conditions, overcome the additional tariff burdens and restore our global competitiveness while offering zero-emission transport.”

Jaguar Land Rover maintained its status as the UK’s largest automaker, despite production declining nearly 37% in 2020

Production levels remain lower than usual as UK car factories can only reduce the number of on-site workers to allow for social distancing and more thorough cleaning