Car manufacturing in the UK has fallen again, dropping nearly 10 per cent last month

Car manufacturing in the UK fell by 9.8 per cent last month, new figures have revealed.

A combination of Brexit uncertainty, model changes and turbulence in the market both at home and overseas is to blame for the drop, according to industry body, the Society of Motor Manufacturers and Traders (SMMT). 

It said the number of cars produced fell by 15,255 units, compared to October of last year with production for the home market falling by 12.1 per cent in October, marking the fifth consecutive month of decline.

Car manufacturing in the UK has dropped for the fifth consecutive month, down 9.8 per cent

Car manufacturing in the UK has dropped for the fifth consecutive month, down 9.8 per cent

Manufacturing of overseas models also dropped by 9.3 per cent last month. However, exports still make up the majority of output, accounting for 82.7 per cent of all cars made. 

Mike Hawes, SMMT chief executive, said: ‘The fifth consecutive month of decline for UK car manufacturing is undoubtedly concerning and, while a number of factors have been at play, there is no doubt that business and consumer uncertainty is having a significant impact.

‘With eight in 10 British-built cars destined for overseas markets, the majority to the EU, the sector’s dependence on exports cannot be downplayed.

‘Europe is our largest trading partner and securing the right Brexit agreement which allows free and frictionless trade is vital for the future health of our industry.’

Year-to-date output remains down, dropping 6.9 per cent, compared to the same period in 2017, with 1,312,304 units produced within the first 10 months. 

Brexit has caused a number of problems for car manufacturers with Britain’s biggest carmaker, Jaguar Land Rover, announcing in October that total revenues had slipped 10.9 per cent year-on-year to £5.6billion.

The firm said that demand for their models was likely to remain muted due to geopolitical, economic, financial and regulatory factors.

Vauxhall also announced that it is cutting nearly 250 jobs at its main car plant in Cheshire. However, it insisted this decision was not Brexit related but due to ‘difficult’ industry conditions.



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