‘Serious Concern’ Over UK Car Output

Tue 27th Aug 2019

Car manufacturing in the UK is nosediving to record lows and could go even lower if the full impact of a ‘no-deal’ Brexit is felt.

Figures for July saw manufacturing output fall by 10.6 per cent to just 108,239 according to the Society of Motor Manufacturers and Traders (SMMT). With 14 months of decline, the industry is now in its worst period of decline since 2001, one worse than the height of the financial crisis.

Brexit has already affected UK output with factory shutdowns in early 2019 impacting production levels. The trade war between the United States and China as well as a global slowdown have also had a say.

“Another month of decline for UK car manufacturing is a serious concern,” Mike Hawes, the chief executive of SMMT, said in a statement.

“The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change.”

“With the UK market also weak, the importance of maintaining the UK’s global competitiveness has never been more important so we need a Brexit deal – and quickly – to unlock investment and safeguard the long term future of a sector which has recently been such an international success story,” Hawes said.