Fri, 30th Aug 2019
The British car industry has experienced its worst period of decline since 2001, with the carmakers’ trade body reporting that it has serious concerns over falling production levels over the last 14 months.
UK car production for the month of July was down more than 10 percent year on year. This marks the 14th consecutive month of declines, according to the latest figures from the trade body, the Society of Motor Manufacturers and Traders. This means that the fall in production has now continued for longer than the last downturn, which took place during the height of the global financial crisis.
The continuous decline is a matter of serious concern for the society. The decline can be attributed to several factors. Brexit is one of the issues which is putting pressure on the industry, butt here are others. The society notes that there have been some emissions scandals which have put pressure ondiesel sales, and that the trade war between the US and China has also put a dampener on the industry, causing something of a global slowdown. Investment in British factories has been reduced because of Brexit, and carmakers are also spending less money on factories in general as they are revisiting their catalogues and looking to electrify their vehicles.
The sector relies heavily on exports, and there are many headwinds in the industry, which means that British factories such as Mini, Nissan and Jaguar Land Rover have all seen their production output fall significantly over the course of the year.