UK 10-year low car output as EU exit fears hit production

... Credit :
Shadrach   in Automotive

Last updated: 30 January 2020, 04:59 GMT

British car production fell to its lowest level in almost a decade last year as warnings intensified that the united kingdom needed to re-establish its reputation as an area to take a position .

Output fell 14 per cent to 1.3m, the worst since 2010, consistent with figures from the Society of Motor Manufacturers and Traders on Thursday.

Promoted Recommendations

The decline of diesel, falling sales to China, and production shutdowns in anticipation of Brexit all hit output, pushing exports down by 14.7 per cent and production for the house market down by 12.3 per cent.

Mike Hawes, SMMT chief executive, said the jury is out on the long-term survival of the united kingdom car industry, adding that Britains reputation had been damaged by the three-year tumult that followed the Brexit choose 2016, which has seen investment into the world collapse.

Investment into the industry was £1.1bn last year, significantly above within the previous two years, but skewed by the £1bn investment of Jaguar Land Rover at its Castle Bromwich plant to permit it to form electric vehicles. the entire is additionally significantly less than the £2.75bn average investment over the past seven years, he added.

The reputation of the united kingdom has got to be re-established,Reputations are hard gained over a few years and simply lost. the united kingdom has been damaged, we dont know if that's permanent or not.

Mr Hawes said.

Promoted Recommendations

Companies like Vauxhall owner PSA, Mini owner BMW and Nissan have warned that future investment within the UK depends on clarity about the long-term trading relationship with Europe.

Four out of 5 UK-made cars are exported, with half getting to the EU and two-thirds to nations with an EU trade deal. Additionally, carmakers believe the EU for a big number of parts.

Britain became more reliant on EU sales last year, as exports to significant markets like China and Japan fell sharply, the SMMT said.

After Friday, when the united kingdom leaves the EU, cars will still be ready to be sold to Europe without tariffs or checks, as a part of the transition deal, during which Britain aims to strike a trade affect Brussels.

Promoted Recommendations

Mr Hawes said that the industry wanted a trade affect the EU that allowed tariff-free and quota-free access to the market. Agreements with the US or other markets were second to Europe within the industrys lists of concerns, he added.

The fall of UK car manufacturing to its lowest level in almost a decade is of grave concern. Every country within the world wants a successful automotive sector because it may be a driver of trade, productivity and jobs.

Mr Hawes said.

Given the uncertainty the world has experienced, it's essential we re-establish our global competitiveness which starts with an ambitious trade agreement with Europe, one that guarantees all automotive products are often bought and sold without tariffs or additional burdens.