By Costas Pitas
LONDON, Jan 28 (Reuters) - British car output fell to its
lowest level since 1984 last year after the COVID-19 pandemic
shut factories and hurt demand, an industry body said on
Thursday, as a decision on keeping open the Vauxhall car factory
looms.
A total of 920,928 cars rolled off production lines in 2020,
down 29% on 2019, according to the Society of Motor
Manufacturers and Traders, as some plants shut for several
months and many still run at below-normal levels.
"These figures, the worst in a generation, reflect the
devastating impact of the pandemic on UK automotive production,
with COVID lockdowns depressing demand, shuttering plants and
threatening lives and livelihoods," said SMMT Chief Executive
Mike Hawes.
Investment, however, was a bright spot, rising to 3.2
billion pounds ($4.4 billion), the highest figure since 2014,
due largely to plans by startup Britishvolt to build a battery
gigafactory in northern England.
Jaguar Land Rover saw its British output fall 37%
to 243,908 cars as Nissan overtook it to become the country's
biggest automotive maker, producing 245,649 vehicles at its
Sunderland site in North East England , according to SMMT
figures.
Output is only expected to recover slightly to 1 million
vehicles in 2021, as the effect of the coronavirus continues and
Honda's Swindon factory, which made nearly 70,000 vehicles in
2020, permanently closes.
Earlier this month, Carlos Tavares, the chief executive of
Vauxhall's parent company, warned about the future of its
Ellesmere Port factory in northern England, where it makes the
Vauxhall/Opel Astra.
He called on Prime Minister Boris Johnson's administration
to show willingness to protect the sector. A decision on whether
the site will build new vehicles or close is due in the next few
weeks.
"As far as the government is concerned, it will want to try
and sustain and do everything it can to help secure that future
investment, having backed the sector in the (Brexit)
negotiations with Europe," said Hawes.
($1 = 0.7299 pounds)
(Reporting by Costas Pitas; Editing by Kirsten Donovan)