Investment fear for car industry
INVESTMENT in Britain’s car industry has slumped amid Brexit uncertainty, potentially putting thousands of jobs at risk, manufacturers have warned.
The Society of Motor Manufacturers and Traders said the amount earmarked for new models, equipment and facilities has nearly halved from £647.4million in the first half of 2017 to £347.3million, the lowest figure since the financial crisis.
Its annual sustainability report said car-making had enjoyed its eighth straight year of growth with record turnover of £82billion, up 5.3 per cent, and jobs growth of 2.8 per cent to 186,000, despite a 4 per cent fall in production to 1.75 million vehicles.
Employment across the automotive sector climbed to 856,000.
Output has fallen in 2018 as demand for new vehicles has waned.
The SMMT urged the Government to give investors confidence prior to forthcoming decisions on new models and “end the current uncertainty about the UK’s future relationship with the EU” by committing to continued membership of the customs union.
Chief executive Mike Hawes said: “Today’s figures show the critical importance of the automotive industry to the UK economy. There is growing frustration in global boardrooms at the slow pace of negotiations. The current position, with conflicting messages and red lines, goes directly against the interests of the UK automotive sector which has thrived on single market and customs union membership.
“There is no credible ‘plan B’ for frictionless customs arrangements, nor is it realistic to expect that new trade deals can be agreed with the rest of the world that will replicate the immense value of trade with the EU.
“There is no Brexit dividend for our industry, particularly in what is an increasingly hostile and protectionist global trading environment.”
The warning came as BMW played down reports it could move production if it cannot import components quickly and reliably from the Continent.