The harsh reality of the Covid-19 crisis for the UK’s £18.6 billion automotive sector has been revealed by a new member survey from the Society of Motor Manufacturers and Traders (SMMT — www.smmt.co.uk), showing that up to one in six jobs are at risk of redundancy.

It says: “With a third of automotive workers still furloughed, the end of the Government’s job retention lifeline in November highlights the critical need for a dedicated restart support package to safeguard these jobs.

“More than 6,000 UK automotive job cuts were announced in June — a result of global lockdowns, closed markets and shuttered plants. Showrooms in England and Wales have been re-opening and production lines restarting, but reduced demand and social distancing are slowing productivity.”

The SMMT is calling for a Government support package for the entire sector to help drive demand and ease cash flow. Measures including unfettered access to emergency funding, permanent short-time working, business rate holidays, VAT cuts and policies that boost consumer confidence “would accelerate a sustainable restart for the market and manufacturing — a pre-requisite to the recovery phase, and to unlocking the investment needed to drive a green future for the UK.”

SMMT chief executive Mike Hawes said: “UK automotive is fundamentally strong. However, the prolonged shutdown has squeezed liquidity, and the pressures are becoming more acute, as expenditure resumes before invoices are paid. A third of our workforce remains furloughed, and we want those staff coming back to work — not into redundancy.

“The 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 the industry; to build demand, volumes and growth; to keep the UK at the forefront of the global automotive industry; and to drive long-term investment, innovation and economic growth. Support delivered now is an investment in the future of one of Britain’s most valuable assets — investment that we will repay many times over.

“Automotive is one of the UK’s most valuable economic assets, exporting more goods than any other sector, generating billions for the economy and supporting some 168,000 high-skilled and high-paid manufacturing jobs in communities across every nation and region of the UK.”