Brexit contributing to slowdown in British car manufacturing

Already hit by falling sales in China, and from the U.S.-China trade war, the automotive industry is going through a turbulent time.

On Thursday, an industry body in Britain disclosed, British car production has dropped by an annual 3.8% in September 2019.

The uncertainty surrounding Brexit is continuing to play a significant role in weakening the country’s economic outlook; a slackening of demand from overseas markets have also contributed to the drop.

Production stood at 122,256 vehicles, with volumes in the first nine months of the year down 15.6% to just under 1 million cars according to the Society of Motor Manufacturers and Traders (SMMT).

The global automotive industry has undergone a torrid year, hit by declining sales in China, trade-war worries between the world’s two biggest economies, a slump in diesel sales in Europe and the need to invest heavily in electrification.

“Another bitterly disappointing month reflects domestic and international market contraction,” said SMMT Chief Executive Mike Hawes. “Most worrying of all though is the continued threat of a ‘no deal’ Brexit, something which has caused international investment to stall and cost UK operations hundreds of millions of pounds.”

With Brexit delayed for a mind numbing third time, Britons are headed to the polls in December in a gamble that a snap election will break the Brexit deadlock.



Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy, Sustainability

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