UK car industry under threat with one in six jobs at risk of redundancy

The Society of Motor Manufacturers and Traders (SMMT) has warned that without further government support the UK car industry could see huge job losses.

SMMT has reported that one in six jobs in the automotive sector are at risk of redundancy as a result of the COVID-19 crisis and subsequent lockdown.

More than 6,000 jobs in the car industry have been lost so far this month, with manufacturers affected by ongoing overheads such as rent alongside a drop in demand.

The organisation wants the government to provide more support to kickstart production, including measures such as emergency funding, permanent short-time working, business rate holidays, and VAT cuts.

Mike Hawes, SMMT chief executive, commented: “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.”

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