UK car output slumps for 12th month in a row

Video credit: Reuters Studio
Published on June 27, 2019 - Duration: 01:18s

UK car output slumps for 12th month in a row

The year-long decline in British car production shows no sign of slowing down as May saw another drop-off.

As Francis Maguire reports, Brexit uncertainty and investment in electric is forcing car companies to cut costs.


UK car output slumps for 12th month in a row

The British auto industry's year-long decline shows no sign it will hit the brakes, Car production down 15.5% in May due to model changes and lower demand at home and abroad.

That's according to The Society of Motor Manufacturers and Traders.

The industry body said Britain produced just over 116,000 cars last month.

Output is down 21% so far this year - partly due to plants shutting down in April to prepare for a possible disorderly Brexit.

The sector's hit by new regulations, Brexit uncertainty and a fall in demand for diesel vehicles.

The SMMT also warned this week against a no-deal Brexit as Britain gears up to leave the EU on October 31st.

They say it would add billions of pounds in tariffs and cause border disruption.

Pressure on the industry also felt with Ford's announcement it will cut 12,000 jobs in Europe by the end of next year.

The U.S. automaker the latest company to reduce costs due to slow demand and a move towards low-emission cars.

Carmakers face pressure to invest in electrics, hybrid and autonomous vehicles, While overhauling combustion engines to meet new clean-air rules.

It's forced Europe's carmakers to slash costs and streamline their model portfolios.

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