UK car production slumped by a quarter in January when the country faced tighter movement restrictions prompting calls for Finance Minister Rishi Sunak to support the sector in next week’s budget.
The number of cars built last month fell by 27 per cent to just over 86,000, a drop of 32,262 on January 2020, the Society of Motor Manufacturers and Traders said on Friday.
It was the worst January performance since 2009 and a 17th consecutive month of decline for the sector, signalling that the problems are not all pandemic-related.
“Yet another month of decline for UK car production is a grave concern and next week’s budget is the Chancellor’s opportunity to boost the industry by introducing measures that will support competitiveness, jobs and livelihoods,” SMMT chief executive Mike Hawes said on Friday.
"We must get our Covid-secure car showrooms back open, ideally before April 12. This will be the fastest way to UK automotive manufacturing recovery.”
The SMMT hopes Mr Sunak will unveil measures in his March 3 budget that enhance Britain’s car manufacturing competitiveness, such as an extension to Covid-19 support schemes including the furlough programme and reform of business rates to encourage manufacturing investment and more support for skills and training.
Analysts expect Mr Sunak to extend the furlough programme at least to the summer while business rates relief could also be extended for sectors badly hit by the crisis.
While the SMMT said the pandemic contributed to the slide in output because of extended factory shutdowns, closed showrooms and difficulties for customers to test-drive cars, global supply chain issues were also a factor along with friction in new trading arrangements with the European Union after Brexit.
European car marker Stellantis said on Thursday that ongoing talks with the British government over the future of a Vauxhall plant in northern England were "productive but not conclusive".
Stellantis – a merger of French firm PSA and US-Italian rival Fiat Chrysler – expects "an eventual binding commitment by the UK government" regarding the future of the Ellesmere Port facility in northern England, which employs 1,000 staff and is linked to thousands more in the supply chain. Car manufacturing for both domestic and overseas markets fell in January to 16,692 and 69,360 units respectively, representing drops of 18.3 per cent and 29.1 per cent.
Exports still accounted for more than eight in 10 of all cars made last month, however, shipments to major markets such as the EU, US and Asia were all significantly lower, the SMMT said.
Dwindling production since the start of the pandemic has cost the industry £11.3 billion ($15.75bn), despite manufacturing businesses remaining open during the latest lockdown in England. Weak consumer demand is a contributor as closed showrooms make it difficult for customers to test-drive cars, with some forced to resort to click-and-collect options.
On a positive note, UK production of battery electric, plug-in hybrid and hybrid vehicles rose from last year, with a combined rise in output of 18.9 per cent to 21,792 units.
It means more than one in four of all cars leaving factories are built to run on alternative fuels, a healthy indicator the sector will transform in time to meet the ban of sales of new petrol and diesel cars from 2030.
“While there have been some very welcome recent announcements, we need to secure our medium to long-term future by creating conditions that will attract battery gigafactory investment and transform the supply chain,” Mr Hawes said.
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
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Man of the Match: Aaron Mooy (Huddersfield Town)
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000
Results
ATP Dubai Championships on Monday (x indicates seed):
First round
Roger Federer (SUI x2) bt Philipp Kohlschreiber (GER) 6-4, 3-6, 6-1
Fernando Verdasco (ESP) bt Thomas Fabbiano (ITA) 3-6, 6-3, 6-2
Marton Fucsovics (HUN) bt Damir Dzumhur (BIH) 6-1, 7-6 (7/5)
Nikoloz Basilashvili (GEO) bt Karen Khachanov (RUS x4) 6-4, 6-1
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
