UK automakers report drop in investment, production

LONDON — British auto production dropped for a third straight 365 days in 2019, as carmakers persisted to aid off on investment amid uncertainty over the nation’s departure from the European Union.

The anemic figures launched Thursday by the Society of Motor Producers and Traders will lift the stress on High Minister Boris Johnson to determine an even trade tackle the EU since the industry without prolong employs 168,000 other folks and contributes 6 billion pounds ($7.8 billion) a 365 days to the economic system. There are fears things will most efficient safe worse if carmakers, who rely on appropriate-in-time present chains, lose the ability to take part on an equal footing in the European single market.

After better than three years of protracted negotiations about the best technique to plug away the EU following the June 2016 referendum, Britain is in the shatter field to achieve so on Friday. Though it could presumably now now not be an EU member after, it enters a so-known as transition length that will permit most up-to-the-minute shopping and selling rules to dwell in attain until the dwell of the 365 days. Auto executives are pushing for a free-trade deal as soon as imaginable to forestall them from closing plants and engrossing in assorted locations.

Figures launched Thursday display total production fell 14.2% closing 365 days to 1.3 million autos, the bottom since 2010. Production for export markets declined 14.7% to 1.06 million autos — the majority of which went to the EU.

Though investment in the industry nearly doubled to 1.1 billion pounds, the figure used to be decrease than half the 2.7 billion pound realistic over the past seven years. A single enormous investment by Jaguar Land Rover, which is constructing electric autos in the Midlands, accounted for a lot of the 2019 figure, the SMMT said.

Mike Hawes, CEO of the trade organization, said the decline in manufacturing used to be a “grave hiss.”

“Given the uncertainty the sphere has experienced, it is necessary we re-place our world competitiveness,” he said. ”And that begins with an dauntless free-trade deal agreement with Europe — one who guarantees all automotive merchandise could presumably very successfully be sold and offered without tariffs or extra burdens.”

The figures advance as the auto industry convulses with trade — and it is now not appropriate about Brexit, which has weighed on the industry for the rationale that 2016 vote.

The growth in electric autos, the shift faraway from diesel and extending competition from international locations fancy China is inflicting turmoil as other folks mediate making large adjustments to their plants and present lines.

David Bailey, an auto industry educated on the University of Birmingham and creator of “Carmaggeddon? Brexit & Beyond for UK Auto,” said the authorities needs to elaborate its plans for an EU trade deal, or threat shedding even extra investment.

“The clock is ticking,” he said. “There could be an true probability we are capable of be timed out.”