Storm clouds gather for car industry and SMEs

The respective results come from reports by the SMMT (Society of Motor Manufacturers and Traders) and CBI (Confederation of British Industry). June saw a 15.2 per cent month-on-month decline in automotive production, making it the 13^th consecutive month to witness a fall in output.

‘No deal’ Brexit foolhardy gamble warn MPs and industry leaders

No deal Brexit would cost car industry £50,000 a minute warns trade body

According to the SMMT, new data shows that Brexit mitigation measures – accentuated by preparations for a ‘no deal’ exit – has already cost the automotive sector £330m. Inward investment in the car industry has also virtually drawn to a standstill in 2019. From January-June, newly pledged investment was just £90m, compared with the average annual investment figure of £2.7bn over the previous seven years.

“Today’s figures are the result of global instability compounded by ongoing fear of ‘no deal’,” said SMMT chief executive Mike Hawes. “This fear is causing investment to stall, as hundreds of millions of pounds are diverted to Brexit cliff-edge mitigation – money that would be better spent tackling technological and environmental challenges.