UK car industry in longest period of decline since 2001
Car manufacturing has declined for 14 months in a row - a more prolonged downturn than during the 2008-9 financial crisis.
Thursday 29 August 2019 12:10, UK
The UK car industry has recorded its longest stretch of decline since 2001 as global trade tensions take their toll on exports.
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed the number of cars produced in July fell to 108,239, 10.6% down on the same month last year.
It was the 14th month in a row of decline, a longer stretch than the 13 months of falling sales recorded during the financial crisis, from October 2008 to October 2009.
The last time Britain saw such an extended slump was from June 2000 to July 2001.
The figures also showed that for the year to date, 774,760 cars have been made in Britain, 18.9% down from 2018.
A decline in export orders was "primarily responsible", with overseas shipments falling 20.2% since January, while production for the UK this year to date is down by 13.5%.
The SMMT blamed the latest monthly decline on "ongoing weakness in major EU and Asian markets coupled with some key model changes".
Mike Hawes, SMMT chief executive, said it was "a serious concern".
He added: "The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change.
"With the UK market also weak, the importance of maintaining the UK's global competitiveness has never been more important so we need a Brexit deal - and quickly - to unlock investment and safeguard the long term future of a sector which has recently been such an international success story."
Some 168,000 people are directly employed in car manufacturing, with a further 823,000 in the wider automotive industry, the SMMT says.
It accounts for 14.4% of total UK goods exports.