UK vehicle output fell by 35.9% in September, based on figures from the Society of Motor Manufacturers and Traders (SMMT).
Particularly, SMMT highlighted issues attributable to an unprecedented cyber incident at Britain’s biggest automotive employer and major manufacturer – resulting in a pause in production with only 51,090 units leaving the factory gates.
SMMT’s chief executive, Mike Hawes, said: “September’s performance comes as no surprise given the entire lack of production at Britain’s biggest automotive employer following a cyber incident. While the situation has improved, the sector stays under immense pressure.”
Overall automobile production for the UK market declined by 34.1% to 12,269 units, whilst exports fell by 24.5%. Roughly half (47.8%) of cars made in September were either battery electric, plug-in hybrid or hybrid, with volumes up 14.7% to 24,445 units. SMMT’s report indicated that a complete of 38,821 cars were made for global markets – making up greater than two-thirds (76%) of the UK’s total output.
September marked the sixth consecutive month of decline in business vehicle (CV) production – falling by greater than two-thirds (77.9%) – which the SMMT noted was largely driven to the consolidation of operations by a number one manufacturer. Combined automobile and van production fell (by 35.9%) to 54,319 units in September.
With the November 26 Budget approaching, concerns have been raised regarding the chancellor’s plans to finish Worker Automobile Ownership Schemes (ECOS). The move would see ECOS vehicles reclassified and responsible for company automobile tax.
SMMT has predicted that the choice would impact 60,000 automotive manufacturing staff, resulting in 80,000 fewer recent automobile sales each year and a discount in UK production volumes of as much as 20,000 cars – with a projected lack of greater than £1 billion in revenue.
Hawes commented: “The Industrial Strategy, launched by the prime minister, business secretary and chancellor only in June, sought to align government policies towards growth and restore UK vehicle output to 1.3 million units each year. The move to scrap ECOS immediately puts that ambition doubtful and should be reversed given the damage it’s going to inflict on the sector and exchequer revenues.”
This Article First Appeared At www.am-online.com
