UK car production plummets in eighth consecutive month of decline
Industry body tells of its ‘serious concern’ as weaker demand globally drives huge fall in output
UK car production fell by more than 18 per cent in January, figures released today show.
It was the eight successive month of decline, with 120,649 units leaving factories during the first month of 2019, against the 147,507 that rolled off the production lines during the same month last year, said the Society of Motor Manufacturers and Traders (SMMT).
It represents a drop of 18.2 per cent.
Demand was down both at home and overseas, with exports falling the most – down 21.4 per cent compared with January 2018. Production for UK buyers, meanwhile, was down by 4.8 per cent.
Mike Hawes, SMMT chief executive, said: “Another month of decline is a serious concern. The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology. But, the clear and present danger remains the threat of a ‘no deal’ Brexit, which is monopolising time and resources, undermining competitiveness.
“Every day a ‘no deal’ Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs. ‘No deal’ must be taken off the table immediately and permanently.”
Falling demand from key foreign markets drove the fall, with outputs destined for China down by 72.3 per cent and those heading to continental Europe down by 20 per cent.
Shadow business secretary Rebecca Long-Bailey said: “These figures show why Labour has been so critical of the uncertainty caused by the prime minister’s shambolic Brexit negotiations.
“They confirm what Labour has been warning of for months, that the government’s botched Brexit negotiations and the looming prospect of ‘no deal’ is undermining British industry.
“The government must end this chaos and back Labour’s credible alternative plan, including a comprehensive customs union, before it is too late for car manufacturing, the companies in its supply chain and all those who work in it.”
