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UK car investment slumps over 70% on no-deal Brexit fears

Credit: Reuters Studio
Published on July 31, 2019 - Duration: 01:39s

UK car investment slumps over 70% on no-deal Brexit fears

Investment in Britain's car sector fell by more than 70 percent in the first half of the year due to concerns about a disorderly Brexit, an industry body said on Wednesday.

David Pollard reports.

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UK car investment slumps over 70% on no-deal Brexit fears

Aston Martin shares go into a skid ..

Car makers slam the brakes on UK investment ..

The UK motor industry suffered a pile-up of bad news on Wednesday (July 31).

The two headlines with one thing in common: Europe.

Leaving the EU without a deal would be - quote - "the worst outcome" ..

According to the SMMT, the trade body fearing extra tariffs and red tape could halt production.

Investment fell 70 per cent in the first half of the year, it says.

The full-year could get a boost from Jaguar Land Rover ploughing finance into making electric cars in the UK .... But spending has dropped from close to 6 billion pounds - or over 7 billion dollars - in 2013, to a tenth of that last year.

And was just 90 million pounds in early 2019.

James Bond's favourite car marque, meanwhile, slumped to a half-year loss, it admitted on Wednesday.

Its shares now down around three quarters ..

From when CEO Andy Palmer celebrated the firm's stock market debut in October with some confidence on the risks of a hard Brexit.

(SOUNDBITE) (English) CEO OF ASTON MARTIN ANDY PALMER SAYING (OCTOBER 2018): "We may lose a little bit of market share as we import cars into the EU, but likewise our principle competitors of the likes of Ferrari and Lamborghini will have the same issue when they come into the United Kingdom.

" Wednesday's 17 per cent stock market plunge to a new low came on the firm's weak performance in Europe, the Middle East and Africa.

There was stronger demand in the U.S. and Asia.

But the decline in the UK and Europe has also prompted it to cut its full-year forecast.

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