Historic fall in UK’s car production
SHAREWATCH
THE number of cars built in the UK over the past six months has slumped to the lowest since 1954, when food rationing ended, new figures reveal.
A total of 381,357 cars were built in the six months to June, a decline of 42% on the same period last year, said the Society of Motor Manufacturers and Traders (SMMT).
The virus crisis led to widespread closures and job losses, and the SMMT warned more were at stake amid fears of a “double whammy” of Brexit tariffs.
The trade body estimated that 11,349 jobs were axed in the past six months at carmakers and companies which supply them with parts and services.
The SMMT called for urgency in talks to secure a trade deal, saying most car firms complained of a lack of clarity to prepare for an end of the transition period.
Car production fell by 48% in June
AEROSPACE & DEFENCE
AvonRbbr ..................................... £331/2 BAE Systems ...................................... 505 Chemring ....................................... 241 1/2 Meggitt ........................................... 275 1/2 Rolls-Royce .................................... 245 1/4 Senior ................................................. 54 1/8
AIM
600 Group ............................................... 8 Highland Gold Mining ................... 289 Johnson Service Grp ........................ 94 London Security ............................... £21 M”S Intl ................................................ 130 Nichols .............................................. 1335 Scapa Grp ........................................ 83 1/4 Youngs ................................................. 930
BANKS
Barclays .......................................... 100 3/4 HSBC Hldgs ........................................ 347 Lloyds Banking Gp ....................... 26 1/4 NatWest Group ................................. 106 Standard Chartered ................... 394 1/8
BEVERAGES
Barr (AG) ......................................... 428 1/2 Diageo ............................................ £28 5/8
CHEMICALS
Croda International .................... £56 3/4 Elementis 98 ................................... 61 3/4 Johnsn Mat ........................................ £23
CONSTRUCTION & MATERIALS
BalfourBeatty .............................. 2435/8 C”R”H .............................................. £28 1/4 Costain ................................................... 60 Marshalls ............................................. 599
ELECTRICITY
Drax Gp .......................................... 272 1/4 SSE ................................................ 1312 1/2
ELECTRONIC & ELECTRICAL EQUIPMENT
Morgan Advanced ...................... 218 1/2 Ox Instmts ....................................... 1370 Volex ................................................ 129 1/2 +28 1/8 +1 1/2 -2 3/4 -7 3/4 -1/4 -12 -6
-5 -5 5/8 +4
-4 1/4 -15 1/4 -2 1/8 -5 1/2 -26 1/4
-15 1/2 -1/8
-1 1/4 -7/8 -1/4
-2 1/4 -3/4 -3/4 -4 1/2
-3 5/8 -17 1/2 +1 1/2 +4 -8 1/2 compared to the same month a year ago, with 56,594 units made, as social-distancing measures and weak demand across global markets continued to restrict output.
June manufacturing for the UK market was down by 63%, while exports were 45% lower.
Mike Hawes, SMMT chief executive, said: “These figures are yet more grim reading for the industry and its workforce, and reveal the difficulties all automotive businesses face as they try to restart while tackling sectoral challenges like no other.
“Recovery is difficult for all companies, but automotive is unique in facing immense technological shifts, business uncertainty and a fundamental change to trading conditions while dealing with coronavirus.
“Our factories were once set to make two million cars in 2020 but
EQUITY INVESTMENT INSTRUMENTS
Aberdeen Div Inc & Gro Trust... 88 3/4 Alliance Trust ..................................... 785 Dunedin Inv ....................................... 253 Edin Invst ............................................ 456 Electra Private Equity ................ 193 3/4 F&C Investment Trust ..................... 671 Henderson Smllr Cos ...................... 727 North American Inc ........................ 219 Scot Am ............................................... 417 Scottish Mortgage .......................... 865 Witan ............................................... 178 5/8
FIXED LINE TELECOMMUNICATIONS
BT Grp ............................................. 107 7/8 Talktalk Telecom ................................. 71
FOOD & DRUG RETAILERS
Morrison (WM) ................................. 187 Sainsbury ....................................... 189 1/4 Tesco .................................................... 218
FOOD PRODUCERS
AB Food ....................................... 1797 1/2 Carrs Group ................................... 131 3/4 REA Hldgs ........................................ 57 1/2 Tate Lyle ......................................... 660 3/8 Unilever .......................................... £46 1/2
GAS, WATER & MULTIUTILITIES
Centrica ................................................. 49 National Grid ................................ 895 3/4 Pennon Grp ................................ 1052 1/2 Severn ............................................. £24 3/8 United Utils ........................................ 893
GENERAL FINANCIAL
3i Group ......................................... 868 3/8 Close Bros ........................................ 1107 London StockExch ...................... £83 1/2 Man Group ......................................... 123 Provident Financial ......................... 166 Schroders ...................................... £29 3/4 Schroders NV ................................ £20 3/4
GENERAL INDUSTRIALS
Smith (DS) ..................................... 269 1/8 Smiths Grp ...................................... 1363 +1/2 -12
-4 -7 1/2 -1 1/4 -10 -16 -8 -8 -23 -1 3/8 -4 -3 1/4
-1/2 -1 -3 5/8
-76
-8 5/8 -1
-1 3/8 -23 3/8 -33 -3/4 -18 1/4
-15 3/4 -38 -1 1/2 -2 5/8 -5 1/2 +1/8 -1/8
-11 3/4 -63 could now produce less than half that number, a result of the devastating effects of the pandemic on top of already challenging market conditions and years of Brexit uncertainty.”
Mr Hawes said the long-term future of the motor industry now depended on securing a good trade deal, pointing out that the EU remained the biggest market for UK cars.
The industry was facing a “plethora” of issues, including Brexit, recovery from Covid-19 and measures to make vehicles more environmentally friendly.
The SMMT had ideas on schemes to stimulate the sector and save jobs, said Mr Hawes, adding sales in September will be crucial in determining the future of the industry.
An analysis by the SMMT suggested
GENERAL RETAILERS
Dixons Carphone ........................... 75 1/8 Inchcape ........................................ 4253/8 Kingfisher ...................................... 2441/2 M & S ................................................. 96 5/8 Mothercare ........................................ 6 3/8 Next ...................................................... £55 WH Smith ........................................... 957
HEALTH CARE EQUIPMENT & SERVICES
Smith Nph ....................................... 1549
HOUSEHOLD GOODS
Barratt Devel ................................ 519 1/4 Bellway ........................................... £25 3/4 Persimmon .................................... £24 1/4 Reckitt Benckiser ........................ £78 1/8 TaylorWimpey ............................. 1213/4
INDUSTRIAL ENGINEERING
I”M”I ................................................... 1062 Molins .................................................. 158 Renold .............................................. 10 3/4 Spirax-Sarco ............................... £103 1/2 Weir Grp ........................................... 1218
INDUSTRIAL METALS
Ferrexpo .............................................. 175
INDUSTRIAL TRANSPORTATION
Signature Avi ................................ 235 7/8
LIFE INSURANCE
Aviva ................................................ 266 3/4 Lgl & Gen ....................................... 211 1/4 Prudential ........................................ 1112 Standard Life Aberdeen ........... 251 1/4
MEDIA
Daily Mail & Gen Tst ........................ 633 ITV ........................................................... 59 Pearson ........................................... 539 1/4 Reach ..................................................... 61 RELX .............................................. 1639 1/2 STV Group .......................................... 230 WPP ................................................. 580 1/4 -3 5/8 -58 5/8 -5 3/8 -4 3/8 -3/8 -1 5/8 -37 -70 1/2
-7 -3/4 -1/2 -1 1/2 -3/8
-19
-2 +18
-7 1/4 +5 3/4
-11 1/4 -13 3/4 -56 -9 1/4
+9 -1 7/8 -3/8 -1 1/4 -42
-13
MINING
Anglo American ....................... 1883 5/8 Antofagasta .................................... 1028 BHP Group ................................. 1672 5/8 Fresnillo ....................................... 1208 1/2 Kaz Minerals ...................................... 545 Rio Tinto ......................................... £46 3/4
MOBILE TELECOMMUNICATIONS
Vodafone Group ......................... 118 5/8
NONLIFE INSURANCE
Admiral Grp ....................................... £24 Marsh McL ..................................... £89 1/4 RSA Ins Gp .......................................... 420
OIL & GAS PRODUCERS
BP ..................................................... 283 3/8 Cairn Energy ................................. 124 1/8 Premier Oil ...................................... 33 1/4 Royal Dutch Shell A ................. 1158 3/4 Royal Dutch Shell B ................. 1113 3/4 Total ................................................. £28 7/8 Tullow Oil .......................................... 24 1/8
OIL EQUIPMENT & SERVICES
Petrofac .......................................... 140 1/2 Wood Gp(J) ................................... 192 1/8
PERSONAL GOODS
Burberry Gp ............................... 1290 1/2 PZ Cussons .................................... 189 3/8
PHARMACEUTICALS & BIOTECHNOLOGY
Astrazeneca .................................. £87 1/2 GlaxoSmithKline ...................... 1529 1/4
REAL ESTATE
Brit Land ......................................... 357 1/2 Hamrsn .................................................. 64 Land Securities ............................ 558 3/4 SEGRO ............................................. 951 5/8
SOFTWARE & COMPUTER SERVICES
Computacenter ............................. 1960 Sage Group ........................................ 718 that without a positive trade agreement with the EU, and the industry trading on World Trade Organisation terms with 10% tariffs, annual output could stay around 800,000 to 2025.
The report added that significant questions remained about the nature of trading conditions from January, with uncertainty about customs procedures, regulation and damaging tariffs causing “real concern.”
The lack of clarity was “severely hampering” the ability of most car companies to prepare for the end of the transition period, said the society.
Unite assistant general secretary Steve Turner said: “Buffeted by the twin forces of the coronavirus pandemic and the ongoing challenges Brexit poses to the sector, the future of the UK’s world-leading automotive sector and the thousands of well-paid -90 1/4 -17 1/2 -42 1/4 -52 1/2 -13 1/4
-1 1/4
-4 1/2
-1/8 +5/8 -18 3/8
-10 1/2 -5 -3 -68 -67 5/8 -1/2 -2 3/8
-10 5/8 -6 3/8
-16 -3 1/4 +1 3/8 -24 5/8
-4 7/8
-1/2 -2 1/4
-3/4 -17 -26 5/8
SUPPORT SERVICES
Bunzl ............................................... £22 1/4 Capita ................................................ 35 5/8 Connect Group ................................... 20 De La Rue ....................................... 130 3/4 Elctro Com .......................................... 661 Electrocomp ...................................... 661 Experian ......................................... £27 1/2 G4S ................................................... 147 1/8 Hays ................................................. 110 7/8 Homeserve ...................................... 1327 Menzies J ....................................... 115 3/4 Redde Northgate ............................. 250 Rentokil .......................................... 557 5/8 Travis & P ..................................... 1154 1/2
TECHNOLOGY HARDWARE & EQUIPMENT
IBM ................................................... £94 1/8 Spirent Comms ................................. 258
TOBACCO
Br Am Tob ...................................... £26 5/8 Imperial Brands ............................. 1341
TRAVEL & LEISURE
Carnival .......................................... 876 5/8 Compass Grp ............................. 1069 1/2 easyJet ............................................ 522 5/8 FirstGroup ........................................ 34 1/8 Go-Ahead Gp .................................... 642 Intercontl Htls ................................... £36 Intl Cons Airl ...................................... 181 Marston’s .......................................... 43 5/8 Mitchells & Butlers ........................... 156 Natl Express .................................. 152 1/4 Rank Org ........................................ 141 1/4 Restaurant Grp .............................. 45 5/8 Ryanair ............................................ 978 1/4 Stagecoach Group ............................ 50 Whitbread ..................................... £22 7/8 William Hill .................................... 105 1/4 -1/2 -1 1/8
+3/8 -7 1/2 -7 1/2 -1/2 -3 1/2 -3 7/8 -31 -5
+9 1/4 -31 -2 1/8 -1 1/2
-1/2 -44 1/2
-17 3/4 -7 -18 1/4 +1 -10 -3/8 -3 1/2 -1/8 -3 5/8 -2 3/8
+3/8 -14 1/2 -1/2 +1/8 -3/8
INDEX FTSE 100 ......................... 5989.99 -141.47 FTSE 250 ....................... 17017.05 -230.61
and skilled jobs that come with it, is in doubt.
“The industry is at a crossroads: Either the government leaves it to become a shadow of its former self or provides the support and investment needed for it to flourish as a producer of the next generation of cleaner cars.
“UK vehicle manufacturers have a vital role to play in the country’s, and the world’s, transition to low carbon, but they cannot do this until the government lays the groundwork.”
Doug Parr, policy director at Greenpeace UK, said: “The threat of such a significant number of job losses from the automotive sector is deeply troubling. The UK Government needs to provide direction and support to industry, and retraining for workers, by turbocharging the electrification of vehicle production.”