The UK’s CV production has plummeted amid coronavirus lockdown as many plants have remained shut. Production for both home and overseas markets falls, down -60.3% and -63.2% respectively.
Coronavirus Slows CV Production
UK commercial vehicle (CV) production was down -61.6% in May, with 810 vehicles leaving factory gates, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). Many plants remained closed in the month, while others resumed operations at a reduced capacity. The fall in output follows a particularly weak May 2019, which saw a -69.9% decline due to key model changeovers.
Year-to-date commercial vehicle output fell -29.8% compared with the first five months of 2019. As some production resumed, 43.3% of commercial vehicles built were for export in May, with more than two thirds (68.7%) exported to the EU, following the gradual re-opening of showrooms in some European markets.
A recent SMMT member survey confirms the continued importance of government support measures such as the Coronavirus Job Retention Scheme, with a third (33%) of automotive employees still on furlough. As the CV sector approaches restart, however, there are significant concerns over cash flow and liquidity, with 70% of automotive businesses experiencing challenges in this area. As the furlough scheme tapers to an end in November, the survey reveals that up to one in six jobs are at risk of redundancy.
