‘Concern’ As UK Car Output Declines Once Again

Thu 29th Nov 2018

Car manufacturing in the UK has dropped for the fifth consecutive month, with a drop of 9.8 per cent compared to the same month in 2017.

The worrying trend for the British car market is reflected in the overall annual figures, which are down on the previous year by 6.9 per cent. Just 140,374 cars left the production line in October, down by 15,255 units on the same month last year.

The Society of Motor Manufacturers and Traders (SMMT) said that with 80 per cent of all models exported, the uncertainty on Brexit is causing a ripple effect through the industry while model changes and new testing regulations are all having an impact.

“The fifth consecutive month of decline for UK car manufacturing is undoubtedly concerning and, while a number of factors have been at play, there is no doubt that business and consumer uncertainty is having a significant impact,” said the SMMT Chief Executive, Mike Hawes.

“With eight in 10 British-built cars destined for overseas markets, the majority to the EU, the sector’s dependence on exports cannot be downplayed. Europe is our largest trading partner and securing the right Brexit agreement which allows free and frictionless trade is vital for the future health of our industry.”

Classic British brand Jaguar Land Rover announced in October that revenues had slipped 10.9 per cent year-on-year and just this week announced further job cuts with 200 agency staff losing their jobs at the Solihull plant. Vauxhall also announced jobs losses this week in Cheshire, blaming ‘difficult industry conditions’.