UK car manufacturing has dropped for 12 consecutive months, new data on Thursday from the Society of Motor Manufacturers and Traders (SMMT) reveals.
A no-deal Brexit is “not an option” now for the automobile sector, according to the Chief Executive of SMMT.
According to the industry body, UK car production dropped 15.5% in the month of May, as 21,239 fewer units were manufactured throughout the month.
Overall output for the year is now down 21% as May’s drop contributes to 12 consecutive months of decline.
The decline in overall UK output is partly caused by some manufacturers deciding to bring forward plant shutdown plans to April, in anticipation of the original Brexit date in March for the UK’s departure, the SMMT said.
“12 consecutive months of decline for UK car manufacturing is a serious concern and underlines yet again the importance of securing a Brexit deal quickly. The sector is facing multiple seismic challenges simultaneously: technological, environmental and economic,” SMMT Chief Executive Mike Hawes commented on the data.
“The ongoing political instability and uncertainty over our future overseas trade relationships, most notably with Europe, is not helping and, while the industry’s fundamentals remain strong, a brighter future is only possible if we secure a deal that can help us regain our reputation as an attractive location for automotive investment. No deal is not an option,” the Chief Executive continued.
A no-deal Halloween departure form the European Union could be scary for the automobile sector.
For the month of May, manufacturing for domestic buyers fell by 25.9%, whilst overseas orders were down 12.6%.
Exports accounted for 80.9% of all cars produced, which underlines the importance of maintaining free and frictionless trade, the SMMT said.
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