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We have written countless times before that the British auto industry has found itself in a very difficult situation due to a combination of several factors, and the latest production statistics show again that restarting and boosting production is excruciatingly difficult in the shadow of the epidemic of coronavirus:
THE FOLLOWING HAS BEEN FOUND THAT ONLY 51,039 CARS WERE MANUFACTURED IN GREAT BRITAIN IN AUGUST, WHICH REPRESENTS A REDUCTION OF 44.6 PERCENT FROM THE SAME PERIOD OF 2019.
It is worth noting that the number of cars produced for export fell by 41.1 percent, while the number of cars produced for the domestic market fell 58.3 percent last month compared to August 2019. , according to the British Automobile Manufacturers and Dealers Association (SMMT). This also meant that only 518,092 cars were produced in the island nation in the first eight months of the year, a decrease of 40.2 percent from the same period in 2019.
The seriousness of the situation is well illustrated by the fact that, according to a previous independent automotive analysis, only 880,000 cars could be produced in Britain this year due to the coronavirus epidemic. If this is indeed the case, it will mean, on the one hand, that the number of cars produced will be reduced by 32 percent compared to 2019 and, on the other hand, there may be as few cars in the island country as there have been no examples. since 1957.
The collapse of the sector has already had painful consequences, with automakers, suppliers and dealers announcing the loss of more than 13,500 jobs.
Sales statistics for August were also disappointing
The archipelago car market has received some very bad news for months, so many have become optimistic about car sales in July, as it turns out that for the first time in a long time, the UK car market is it has expanded by more than 11 percent. Looking at the sales figures, there was hope that maybe the deep flight would end and car sales would start to pick up again.
August sales figures released by the British Automobile Manufacturers and Dealers Association (SMMT) quickly disproved all of this, with just 87,226 passenger cars registered last month, down 5.8% from August 2019.
TAKING INTO ACCOUNT THE ENTIRE YEAR, IT CAN BE SAY THAT A LITTLE MORE THAN 915 THOUSAND CARS WERE SOLD, WHICH THEY REPORTED ALMOST 40 PERCENT OF THE PREVIOUS YEAR.
It’s also worth noting that SMMT has significantly lowered its forecast for this year ahead of the March sales figures – they believe 1.73 million cars could be sold, a contraction of about 23 percent in the second car market. largest in Europe.
We are only weeks away from true tragedy
We also wrote in our detailed analysis a few days ago that the UK has only a few weeks left to take to the heights of the long-awaited free trade agreement that would allow us to avoid exiting the European Union without a deal. The only problem is that the worst-case scenario has come astonishingly close due to a whole series of political games, so as much as the British try to reach an agreement, it will be very difficult to reach a reassuring agreement for both. parts.
And this is terribly bad news for the auto industry, whose players are desperately trying to draw the attention of politicians, even at the last minute, to the damage that could be caused by unsigned Brexit, one of the most important sectors of the world. Europe, which has already suffered a lot in recent months.
According to the European Automobile Manufacturers Association (ACEA), the European Automobile Suppliers Association (CLEPA) and 21 other automotive organizations, if the British leave the European Union without an agreement and the general rules of the WTO come into force on 1 January 2021, due to rising prices, falling demand will result in
3 MILLION VEHICLES COULD BE LESS MADE IN THE NEXT 5 YEARS.
All of this is calculated by advocacy organizations
110 BILLION EUROS (Approximately 39 985 BILLION HUF) CAUSE LOSS OF TRAFFIC TO THE UNITED KINGDOM AND THE EUROPEAN UNION.
Cover Image Source: Owen Humphreys / PA Images via Getty Images
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