UK car production declines 14th month in a row

UK car production declines 14th month in a row

UK car production declines 14th month in a row

British car manufacturing output dropped 10.6% in July, new data from the Society of Motor Manufacturers and Traders (SMMT) revealed on Thursday.

This marks the 14th successive month of decline for UK car manufacturing output.

Performance was affected by ongoing weakness in major EU and Asian markets, alongside some key model changes, the SMMT said.

Production for export dropped 14.6% in the month, but demand from overseas remained the primary driver of overall volumes contributing to 8 in 10 cars made, the SMMT added.

In the year-to-date, the number of cars made in Britain dropped by 18.9% – 774,760 cars have been made which is 180,864 less than in the same period a year prior.

“Another month of decline for UK car manufacturing is a serious concern. The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change,” Mike Hawes, SMMT Chief Executive, commented on the data.

“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,” the SMMT Chief Executive continued.

The future of the industry is looking spooky as the Halloween Brexit date approaches. News emerged only yesterday detailing that Boris Johnson had asked the Queen to suspend Parliament.

This move sparked a wave of backlash because it limits MPs’ ability to block a no-deal exit from the European Union.

Uncertainty looms as the UK braces itself for its final departure date from the European Union – will a deal be secured over the next few weeks?