Car production numbers post rise for the first time in 15 months
Britain’s crisis-hit car manufacturing industry regained some speed in August, despite the threat of a “hammer blow” no-deal Brexit still looming.
Car production rose 3.3 per cent in August to 92,152 units, the first increase in 15 months, according to the Society of Motor Manufacturers and Traders (SMMT).
Read more: Car industry investment grinds to a halt as Brexit uncertainty cripples sector
The increase was down to several key plants bringing forward planned summer shutdowns to April to guard against the potential disruption of the then-29 March Brexit withdrawal date.
However, last month’s gains did not make up for the subsequent losses in April. Just 2,903 more cars were made in August than in the same month last year, compared to April’s 56,999-unit loss.
The car industry has been beset by problems in recent months, with trade tensions and a massive technological upheaval as the sector moves towards electric vehicles adding to its Brexit headaches.
SMMT boss Mike Hawes said: “While growth is always welcome, today’s figures mask the underlying downward trend.”
“Softening of global demand is compounding the challenge to UK manufacturers for whom a ‘no deal’ Brexit would be a hammer blow.
“The mere threat of no deal has undermined investment and the potential imposition of tariffs, border delays and additional administrative burdens would damage competitiveness.”
Read more: British car industry troubles run far deeper than Brexit
In the Commons yesterday, de facto no-deal secretary Michael Gove raised eyebrows by claiming he had met representatives from the automotive sector, who told him “they were ready” for crashing out without a deal.
Hawes later tweeted: “Auto has been consistent & clear: Spent over £1/2 bn on prep but can’t fully mitigate serious risks. Need deal & free & frictionless trade.”