The Society of Motor Manufacturers and Traders (SMMT) says that up to one in six jobs in the UK auto market are at risk of redundancy due to the impact of Covid-19.
According to the organization, more than 6,000 UK automotive job cuts have been announced in June, although showrooms in England and Wales are now re-opening and production lines restarting.
’UK automotive is fundamentally strong,’ said Mike Hawes, SMMT chief executive. ‘However, the prolonged shutdown has squeezed liquidity and the pressures are becoming more acute as expenditure resumes before invoices are paid. A third of our workforce remains furloughed, and we want those staff coming back to work, not into redundancy. ‘Government’s intervention has been unprecedented. But the job isn’t done yet. Just as we have seen in other countries, we need a package of support to restart; to build demand, volumes and growth, and keep the UK at the forefront of the global automotive industry to drive long-term investment, innovation and economic growth.’
The impact of the pandemic on manufacturing is expected to cut annual car and light commercial vehicle production volumes by a third to 920,000 units this year, the SMMT reported.
The organization’s trade and post-Covid-19 reports can be accessed here.
This story uses material from the SMMT, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
