U.K. Auto Industry Output Plummets Due to Brexit Shutdowns

By Paul Riegler on 29 May 2019
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EThe Society of Motor Manufacturers and Traders said that car production in the United Kingdom fell for the 11th month in a row in April, due to factory shutdowns that were intended to allow automakers to deal with the original March 29, 2019 deadline for Brexit.

The group reported that car production in April fell 44.5% year-over year, down 56,999 cars to 70,971. Production for home and overseas markets fell by 43.7% and 44.7% respectively.

The automakers had to undertake multiple costly measures including stockpiling parts, training employees for new customs procedures, and changes in logistics and the supply chain.

The group said that the situation is expected to ease by the end of the year, provided the United Kingdom leaves the European Union with a favorable deal and a substantial transition period.

Founded in 1902, the Society of Motor Manufacturers and Traders is a trade association that represents the U.K. motor industry. Its stated role is to “promote the interests of the U.K. automotive industry at home and abroad.”

The group has over 800 members in the automotive industry. Members include Bentley Motors, BMW, Jaguar Land Rover, Mini, Rolls-Royce Motor Cars, Volkswagen, and Volvo.

(Photo: Accura Media Group)