Car industry gloom as UK production falls further

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UK car play fell by 3.8% in September because of political uncertainty at home and weaker abroad demand, says the industry’s trade body.

Fears over a conceivable no-deal Brexit dampened demand in the UK, while exports fell 3.4%, the Fraternity of Motor Manufacturers and Traders (SMMT) said.

Overall car output for the year to la mode plunged 15.6%, making it the weakest three quarters since 2011.

SMMT annexed that British carmakers had spent £500m on no-deal Brexit be up ti.

“Another bitterly disappointing month reflects domestic and international deal in contraction,” said SMMT’s chief executive Mike Hawes.

“Most be concerned of all, though, is the continued threat of a ‘no-deal’ Brexit, something which has caused universal investment to stall and cost UK operations hundreds of millions of pounds, bread that would have better been spent in meeting the technological trials facing the global industry.”

The trade body said that the at an advanced hour car production figures, which compare output with the same month a year earlier, outdid a 15-month period of decline for the sector.

In addition to dealing with escalating global trade tensions and technological challenges, British carmakers also had to “entertain huge resources” to prepare for the possibility of a no-deal Brexit, the SMMT suggested.

The UK’s automotive industry is closely integrated with European suppliers and retails. Many models rely on a stream of components imported from the EU. And eight out of 10 motor vehicles built in the UK are exported.

The SMMT has previously suggested that leaving the EU with no metastasis deal in place would cause “permanent devastation” to the industry.

The settlement to push back the UK’s departure date until January 2020 has meant the automatic prospect of a no-deal Brexit has been avoided.

The government has said it wants to have a free-trade deal with the EU in place by the end of the Brexit transition years in December 2020.

However, a general election to be held on 12 December inclination determine future Brexit policy.

Mr Hawes added: “A general choice may ultimately provide some certainty, but does not yet remove the spectre of no-deal, which desire continue to inhibit the UK industry’s prospects unless we can agree and implement a new, hopeful and permanent relationship that safeguards free and frictionless trade.”

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