Political turmoil and low demand hit car production in the UK

UK car production for the home market plunged by more than a quarter in November amid Brexit uncertainty and falling real pay. Just 24,276 cars left production lines destined for the UK market in November, a 28% drop on the figure in the same month last year.

Overall production numbers including cars destined for export were down 4.6% at 161,490, the Society of Motor Manufacturers and Traders said.

Exports rose by 1.3% but this was not enough to offset the slump in domestic which slipped for the fourth consecutive month. Overall output has fallen 9% for the UK market and 2 per cent overall in 2017.

The SMMT urged for clarity on the UK’s future relationship with the EU, including any transitional arrangements which it said were “vital” for the industry’s future.

“Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output,” said Mike Hawes, SMMT Chief Executive. “Whilst it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing.”

The UK’s car industry is a sector that could be amongst the most badly damaged by Brexit.

Car industry figures have repeatedly warned that they need access to the EU to remain as free as possible in order to keep manufacturing in the UK.

“No deal would be a disaster really not only for my business but for the industry in general,” Steven Armstrong, Ford’s president for Europe, Middle East and Africa operations, said last month. THE INDEPENDENT