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Evening Standard
Evening Standard
Business
Jonathan Prynn

UK vehicle manufacturing plummets to lowest since 1952 in April

The Morris Minor was Britain’s best selling car when manufacturing levels were last so low in April -

Car and van manufacturing in the UK slumped to its lowest level in more than 70 years last month.

Latest figures from the Society for Motor Manufacturers and Traders (SMMT) showed the number of cars made in Britain fell by 8.6% in April while production of vans and other commercial vehicles was down by 68.6%.

Overall UK car and commercial vehicle production fell by 15.8% to 59,203 units in April.

Excluding the first covid lockdown in 2020 when virtually all manufacturing ceased, that is the the lowest output total for the month since April 1952, when the late Queen Elizabeth II had just ascended the throne and the Morris Minor was the best selling car in the UK.

While output was limited by the timing of Easter, model changeovers and temporary plant closures the figures will nonetheless sound alarm bells.

The SMMT said “urgent action” is required to reboot one of the country’s most important manufacturing and exporting sectors.

The first four months of the year have been the slowest for production since the 2009 recession caused by the global financial crisis.

Car exports declined 10.1% during a month of intense international trading volatility, while commercial vehicle exports fell 75.8%.

Shipments to the UK’s two largest global markets, the EU and US, fell by 19.1% and 2.7% respectively, although the EU still took more than half of all exports while the US received 16.5%. But exports to China and Turkey rose by 44.0% and 31.2% respectively.

Commercial vehicle export volumes, meanwhile, fell sharply by 75.8%. The decline was driven by a 78.9% drop in shipments to the EU, but the bloc retained the lion’s share of exports at 84.9%.

Mike Hawes, SMMT Chief Executive, said, “With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness.

“Government has recognised automotive manufacturing’s critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month.

“To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK.”

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