The UK’s car manufacturing industry has posted the third consecutive month of falling output in August, with a 12.9% decline compared with the same month in 2017.
A total 89,254 cars were produced in the UK in August, compared with 102,438 in August 2017. Across the year so far, a manufacturing output has fallen by 5.2%, meaning almost 57,000 fewer cars have been produced in the UK across the year so far, compared with the same period last year. This decline is greater than that for total car registrations in the UK, which has declined by 4.2% for the year so far.
The decline in manufacturing was driven by a sharp drop in local demand for UK-produced cars of 38.8%, with 16,721 cars built in the UK and being sold here, which represents 17.8% of August’s total new car registrations.
Cars built for export remained buoyant, with a comparatively modest 3.8% decline in August, and 72,983 cars leaving the country.
SMMT boss Mike Hawes pinned the decline to extra uncertainty around manufacturers’ summer shutdowns in their production plants, but added: “The quieter summer months are often subject to fluctuations due to the variable timing and duration of annual maintenance and re-tooling shutdowns. This instability was exacerbated in August, with the industry racing to recertify entire model ranges to meet tougher [emissions] testing standards in force on 1 September.
“With exports, the majority to the EU, continuing to drive demand, it underscores the importance of a Brexit agreement to safeguard this trade; for our sector, ‘no deal’ is not an option.”
UK-based Mini recently issued a warning around Brexit, stating that in the weeks after the UK’s 29 March 2019 exit from the European Union, the brand will shut its Oxford plant for a few weeks, moving forward its summer shutdown date to coincide with when anticipated Brexit-related supply issues might happen.
The SMMT has long warned of the risks to UK manufacturing that Brexit - hard or otherwise - poses, warning that the "government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests” following the Brexit vote in 2016.
A peak in UK manufacturing was seen in March 2017, with over 170,000 cars produced that month. This figure was the highest monthly output for UK-based car manufacturing in 17 years.
The latest figure is the lowest year-to-date output for UK car manufacturing since before the UK’s vote to leave the EU.
The SMMT has long warned of the risks to UK manufacturing that Brexit - hard or otherwise - poses, warning that the "government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests” following the Brexit vote in 2016.
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Is the drop of 6% in GERMAN
Is the drop of 6% in GERMAN car manufacturing also a fault of Brexit? This just gets more and more absurd. The only people who fall for this crass nonsense are the ones who take these reportings on face value and don't look deeper. Brexit isn't causing ANY decline, as it hasn't even happened yet. UK manufacturing output is UP since 2012. The PMI index has gone from 44 to 53. If Brexit is causing anything at all, it appears to be growth!
But none of this matters anyway, as the Brexit vote was a political one, not an economic one.
Sales up in Germany.
Sales in Germany were up last year so they still have a growing market. Although I'd like to hear why you think manufacturing is down. But you seem to like to do a hit and run comment, which shows how little you actually care.
That’s it then, we’re all
That’s it then, we’re all doomed!
Don’t bother
Whenever the word Brexit is mentioned, the usual remainers vs leavers debate breaks out. I know most people have strong views, but does anyone actually think their arguments will sway opinion on either side?
It was all lies.
Depends if the Leave supporter wants to look at the evidence or not.
There was this notion that we're "taking back control". Control of something that we never ever lost! There's no EU law been passed that the UK objects to as we had the power to not implement them. Then there's the "unelected EU commission", which is actually made up from the 28 member states putting forward their own representative and having our MEPs voting them in. Even the EU President is voted in to position by the people we've elected to represent us - our MEPs.
That's without going in to the £ 350 million promise that has widely been debunked. Even our £ 8bn payment (which Brexiteers like to quote as nearly double that) to the EU has been more than lost because of the effects of Brexit on Britain. And our currency collapsed because of Brexit so everybody in the UK took a pay cut. Didn't anybody explain that one?
The more you look at Brexit and the reasons why, the more you realise it was all lies. Even Farage admitted this on the morning of the result!