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'Considerable concern' as car production for UK market drops for seventh month

Joseph Flaig

(Credit: iStock)
(Credit: iStock)

Car production for the domestic market fell for the seventh consecutive month in February, causing “considerable concern” for UK manufacturers.

Output destined for British roads dropped 17%, according to the Society of Motor Manufacturers and Traders (SMMT), contributing to an overall decline of 4.4%.

“Another month of double-digit decline in production for the UK is of considerable concern, but we hope that the degree of certainty provided by last week’s Brexit transition agreement will help stimulate business and consumer confidence over the coming months,” said SMMT chief executive Mike Hawes.

“These figures also highlight the scale of our sector’s dependency on exports, so a final deal that keeps our frictionless trade links with our biggest market, the EU, after December 2020m, is now a pressing priority.”

Exports also fell, but only by 0.8%. In February, companies shipped 117,139 vehicles overseas – more than 80% of output.

In total, 145,475 units were produced, 6,757 fewer than in the same month last year. Overall year-to-date output declined -2.3%, with 292,956 units rolling off production lines in the first two months of 2018.

One silver lining highlighted later in the day by the SMMT was engine exports – more than a quarter of a million were produced in British factories in February. Exports jumped 16.1% to 157,880 units, 62% of all output. The organisation hailed a “strong start to 2018,” with engine manufacturing up 10.3% so far this year.

“Record UK engine production in February is good news for the industry, a result of massive investment into high-tech factories, a productive workforce and a fully-integrated and efficient supply chain,” said Hawes. “With six in every 10 engines built in the UK last month heading abroad, the importance of maintaining open trading links with Europe and other overseas markets is plain to see.”


Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.
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