Currently reading: UK car production drops again in July as exports are hit
July market the 14th consecutive month of decline in manufacturing output, industry chief expresses “serious concern”
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2 mins read
29 August 2019

Car manufacturing in Britain took yet another hit in July, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). 

108,239 units were produced over the month, a decline of 10.6% compared with the same period last year. Exports fell a significant 14.6%, too, although cars leaving the UK once built still made up over 80% of total production. 

The announcement of the figures marks fourteen consecutive months of manufacturing decline in Britain. The decline in exports in 2019 is the most contributory factor, with oversees shipment down a fifth since January. A total of just under 775,000 cars have been built in the UK to date - a fall of 18.9% year-on-year. 

The ongoing drop in demand from markets in the European Union and Asia - in particular China, the world’s largest new car market - are cited as factors for the continued decline by the SMMT. But that doesn’t mean the local uncertainty from an increasing chance of a no-deal Brexit isn’t causing further headwinds. 

Mike Hawes, Chief Executive of the SMMT, said “Another month of decline for UK car manufacturing is a serious concern. 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.”

Read more:

UK car manufacturing falls by a fifth in first half of 2019

Brexit contingency plans have cost UK car industry £330m

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Peter Cavellini 29 August 2019

Boris and the Dragon!

 And here we have Bumbling Boris leading us into the decline!, trying to shut down the Government just to get a no Brexit deal is under hand, making the Queen make a speech, what does that sound like?, Tail wagging the Dog?, I hope his plan fails because the next step is.....?.....another referendum, and this time some of the leavers WILL vote to remain!, this is why Car production and other Industries are in decline just now, David Cameron has a lot to answer for......

si73 29 August 2019

Peter Cavellini wrote:

Peter Cavellini wrote:

 And here we have Bumbling Boris leading us into the decline!, trying to shut down the Government just to get a no Brexit deal is under hand, making the Queen make a speech, what does that sound like?, Tail wagging the Dog?, I hope his plan fails because the next step is.....?.....another referendum, and this time some of the leavers WILL vote to remain!, this is why Car production and other Industries are in decline just now, David Cameron has a lot to answer for......

The only part of that I agree with is that David Cameron does indeed have a lot to answer for.

Strawman_John 29 August 2019

BREXIT makes it worse

Of course much of this downturn is driven by world market issues, and one of those is BREXIT, it would foolish to say it is the only reason, just like it is foolish to say the threat of it has had no impact (I know a few people who are not buying new cars and waiting to see what happens ). Where BREXIT has the killer punch is the threat has reduced investment in UK manufacturing and hard BREXIT makes UK manufacturing less attractive in the future.

BREXIT is an economic act of self harm that leaves the UK as a less attractive place to do business and reduces UK influence plus leaves the country more of a rule taker where it used to be a rule influencer. The impact on UK manufacturing is probably the greatest. 

si73 29 August 2019

Strawman_John wrote:

Strawman_John wrote:

Of course much of this downturn is driven by world market issues, and one of those is BREXIT, it would foolish to say it is the only reason, just like it is foolish to say the threat of it has had no impact (I know a few people who are not buying new cars and waiting to see what happens ). Where BREXIT has the killer punch is the threat has reduced investment in UK manufacturing and hard BREXIT makes UK manufacturing less attractive in the future.

BREXIT is an economic act of self harm that leaves the UK as a less attractive place to do business and reduces UK influence plus leaves the country more of a rule taker where it used to be a rule influencer. The impact on UK manufacturing is probably the greatest. 

So brexits killer punch has caused a reduction in UK manufacturing, does that include the increase in production from Toyota and Suzuki in both car and engine plants in the UK? I am sure the threat is causing issues but you can't make blanket statements.

Strawman_John 29 August 2019

the statement stands

Are you arguing that current production levels are not down? In the variety of issues currently running you would expect some models to be up in sales and others down. As the totals show the total number of cars built are down for many reasons not just BREXIT.

And if you are aware of manufacturing then you know investment hits future production harder than current production as you use existing investment to make your current production. What will happen is new products will get introduced in other factories and so output will fall as the product ages. It is not one big bang of there goes production but piece be piece erosion.  Manufacturing investment is for a  number of years production so often when things go adverse you have to ride it out for a while till the next model cycle. 

si73 29 August 2019

I'm not making an argument

I'm not making an argument just stating the fact that Toyota and Suzukis joint venture has increased investment in UK manufacturing, and that your blame Brexits killer punch is not necessarily correct, as you alluded to there is a lot more to it. I am not denying brexit as a factor but without it UK manufacturing would still be in decline. One of the biggest issues has been Brexits uncertainty, and most of the blame for this uncertainty can be placed at the feet of our politicians who are too busy squabbling and not trying to get a good deal, too much undermining going on. The vote was had, a result came of it and it is up to the government to carry out what was voted for, not squabble and try and quash or go against the vote. Had the government, the opposition and all the other members done their jobs and delivered on the referendum by working together for a good deal, a lot of this uncertainty would not have happened. And we would probably have been in a better bargaining position.

scotty5 29 August 2019

And what about production in other countries?

Yep, it's the blinkered tunnel vision view again. It used to be anyone who voted for Brexit who was public enemy no.1, the new shifted stance appears to place a no-Brexit deal as the culprit.

Car production in Germany is as follows: (hopefully I'm reading the correct figures for car production)

July 2019 - 359,400

July 2018 - 378,651

July 2017 - 376,087

July 2016 - 410,630

July 2015 - 533,264

July 2014 - 535,001

Funny how our European friends, who are not experiencing a domestic Brexit nor a looming no-deal, are also experiencing decline. Of course the remoaners will tell you global economics has nothing to do with it, it's only poor old UK plc. who suffers.

 

loopy 29 August 2019

Germany's car industry will

Germany's car industry will recover, the UK's will not. It's the height of insanity to believe that a seamless interface to European markets being replaced by trade barriers will make things "better".  Good luck building cars to sell to .... the USA?

Straff 29 August 2019

Maybe not

loopy wrote:

Germany's car industry will recover, the UK's will not. It's the height of insanity to believe that a seamless interface to European markets being replaced by trade barriers will make things "better".  Good luck building cars to sell to .... the USA?

I wouldn't be too sure that Germany's car industry will recover. This is a worldwide issue - car production is dropping as priorities change. We're going to see some pretty big mergers over the next ten years to cope with cutting production and reduced margins. Brexit or no Brexit...

Rtfazeberdee 29 August 2019

You forget that the UK is a

You forget that the UK is a big purchaser of German cars so as our brexit economy tanks we also stop buying as many imports. So, yes, we contribute to German car decline too by not buying (or leasing) as many.