Car production in Great Britain has fallen by 7.3 percent. in six months to June. In addition, the closing of the van factory Vauxhall in Luton contributed to the decrease in the production of van by 45 percent. The data was published by the Association of Car Manufacturers and Sellers (SMMT), which is cited by the BBC. It was noted that this was the worst result since 1953, except for downtime during the Covid-19 pandemic.
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The uncertainty related to the duties announced by Donald Trump translated into the fact that Some companies have slowed down or suspended production in the first half of this year. The US is the second largest market for the sale of cars produced in Great Britain.
British Association of Car Producers and Sellers said that a tariff agreement between the USA and Great Britain could increase trust, while the government said that subsidies for electric vehicles would “stimulate” the industry.
As BBC notes, SMMT It was satisfied with subsidies for electric vehicles, but stated that the new system was not clear and was introduced without consulting the industry.
Production of cars in Great Britain is the lowest in over 70 years
Mike Hawes, the general director of SMMT, said that half -year production data is “depressing”, but he hopes that the first half of this year was a reflection point for the British car industry.
Announced in May Agreement with the USA regarding the reduction of customs duties from 27.5 percent. up to 10 percent entered into force on June 30, And SMMT recorded a slight increase in vehicle production in June. The association – according to the BBC – does not expect a return to the production level of a million vehicles from 2021 before the end of the decade.
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Last week, the British government confirmed that it would re -introduce subsidies of up to $ 3,750 for some electric vehicles at a price of 37 thousand. pounds or lower.
As BBC reminds, There is a widespread confusion about which vehicles will qualify for discounts. This will be determined based on the amount of carbon dioxide emitted during the production of the vehicle and its battery. They will only be offered to producers who have verified scientific goals with thresholds that the government has not yet defined. The British automotive industry is counting on the fact that Chinese and Korean vehicles will not meet the criteria, but it is still unclear.
