Skip to main content

Car sales to 65 years low

 Factories turned out 64,729 vehicles last month, down by 41.4 per cent compared with a year ago, in what were "historically poor production numbers", according to the SMMT. (Society of Motor Manufacturers and Traders).

The SMMT believes factories are on track in 2021 to produce fewer than one million vehicles for a second consecutive year before getting back above the one million level next year and rising to a potential 1.2 million in 2024. 

Overall production for the UK market was down 38 per cent; new cars going abroad dropped by 42 per cent. 

The SMMT's latest figures show production this year is almost 3 per cent lower than 2020, at 721,505 cars. 

"With Covid resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense." 

According to SMMT's Chief executive Mike Hawes, those measures could include "tackling high energy costs, supporting employment and training, and helping businesses whose cash flow is under pressure", 

He described carmakers as "resilient" but said they were battling a series of challenges. 

Carmakers have been struggling with a severe shortage of microchips as semiconductor producers shifted during the pandemic to satisfy the demand for consumer electronics. 

    Car production slumped by 40 per cent in Britain last month as manufacturers grappled with a shortage of semiconductors on top of disruption caused by the Covid pandemic. About 60 per cent went to the EU, with that business supported by the deal struck last year allowing the car trade with Europe to be tariff-free. 

The sector is calling for assistance from the government to help ease the burden and enhance companies' ability to compete with foreign rivals. 

It was the fourth monthly drop in a row and contributed to the weakest October output since 1956, according to the Society of Motor Manufacturers and Traders (SMMT).

Summarised www.sba.tax
Labels:

Comments

Post a Comment

Cloud Bookkeeping

H&M struggles with profitability.

  H&M blamed high clothes prices ,  its exit from Rus­sia and a cost-cut­ting pro­gramme for an unex­pec­tedly large col­lapse in its earn­ings as the world’s second-largest fash­ion retailer’s struggles with prof­it­ab­il­ity con­tinue .  Oper­at­ing profit plunged 87 per cent to SKr820mn in the fourth quarter to the end of Novem­ber from a year earlier .  Shares in H&M fell more than 4 per cent to SKr125 . 80 yes­ter­day ,  hav­ing lost nearly half of their value since their recent peak in April 2021 .  The Swedish retailer ,  which lags behind Indi­tex ,  the Span­ish owner of Zara ,  in sales and prof­it­ab­il­ity ,  launched a SKr2bn cost-cut­ting pro­gramme last year that included 1 , 500 job losses . H&M’s sales in the fourth quarter were up 10 per cent to SKr64 . 4bn but flat in local cur­rency terms .  It said sales from Decem­ber 1 to Janu­ary 25 had increased 5 per cent in local cur­ren­cies .  «Sales in ...
2 comments
Read more

Commercial properties continue to fall

  UK commercial property values and rents are projected to «tumble off a cliff edge» in the first quarter of 2023, as estate agents warn offices will fare worst as prices fall. A survey of more than 400 commercial agents forecast a 2.9 per cent decrease in prices per square foot across the industry in the first three months of the year, with offices falling 3.1 per cent. «Where we saw the market stop still, we will see the market finding its level, people working out where things are, where value is,» he said. Listed vehicles have already seen this valuation drop in their share prices, with real estates investment trusts such as Land Securities and British Land falling by a fifth or more this year. According to the RIB estate report, offices are expected to suffer the most significant sales price falls, with nearly a third of respondents expecting them to come down by more than 5 per cent. In addition, the survey projected a 1.3 per cent fall in rents per square foot over the perio...
Post a Comment
Read more

BoE is considering to increase deposit guarantee.

  According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...
Post a Comment
Read more