2 July 2019
Recent results announced by the Society of Motor Manufacturers and Traders (SMMT) show production output of vehicles fell 15.5% in May 2019, confirming 12 consecutive months of declining outputs.
Factories built 116,035 new models last month, which was 21,239 fewer than in May 2018.
SMMT and manufacturers have said that a full year of tumbling production is a 'serious concern' and warned that the sector faces serious challenges ahead.
The decline in outputs means that UK production is now 21% behind in 2019, the figures from SMMT show.
At the end of May last year, some 705,774 new cars had rolled off production lines, while the total production output for 2019 to date is just 557,295 units.
SMMT stated production figures had been affected by manufacturers bringing forward their factory shutdowns to the end of March and early April in anticipation of disruptions caused by the UK's proposed departure from the EU.
Figures also showed that production units for the domestic market had fallen by 25.9% year-on-year last month, while manufacturing for export – which accounts for more than eight in ten vehicles built in the UK – also slumped by 12.6%.
12 consecutive months of decline for UK car manufacturing is a serious concern and underlines yet again the importance of securing a Brexit deal quickly.
The ongoing political upheaval, instability, and uncertainty over our future overseas trade relationships, most notably with Europe, is not helping, and, whilst the industry's fundamentals remain strong, a healthy future is only possible if we secure a deal that can help us regain our reputation as an attractive location for automotive investment.
If you are involved in the automotive industry and would like any advice on this matter and others that may affect your business please contact one of our specialist automotive sector team.
