Figures released by the Society of Motor Manufacturers and Traders (SMMT) show UK car production fell by four per cent in October compared to last year.
According to the SMMT, 134,752 units rolled off production lines in October 2019, which was 5,622 fewer models than October 2018. That four per cent decline feeds into a year-to-date drop of 14.4 per cent, with automotive production declining in 16 of the last 17 months.
SMMT counts cost of ‘no deal’ threat
SMMT launches car industry Brexit aid package
“Yet another month of falling car production makes these extremely worrying times for the sector,” said Mike Hawes, SMMT chief executive. “Our global competitiveness is under threat, and to safeguard it we need to work closely with the next government to ensure frictionless trade, free of tariffs, with regulatory alignment and continued access to talent in the future.
“This sector is export led, already shipping cars to more than 160 countries, and in a period of unprecedented change a close trading relationship with the EU and preferential trading with all these other markets will be essential to keep automotive in Britain.”
October 2019 saw production for the home market drop 10.7 per cent, while exports were down 2.6 per cent. Across the whole year to date, domestic demand is down 10.4 per cent, with overseas orders declining by 15.2 per cent.
Alongside Brexit uncertainty, model changeovers have also played a part in the downturn, according to the SMMT. But there are indicators that the global stagnation that has compounded the UK’s domestic woes may be shifting, which could help provide the sector with a much-needed shot in the arm.
“There are tentative signs that global growth – a huge factor in the health of UK car-making – may be getting back on track after some softness this year,” said Stuart Apperley, director and head of UK automotive at Lloyds Bank Commercial Banking. “Germany’s latest GDP data at least showed modest growth and there is the prospect of the US and China agreeing to end their trade stand-off.
“Many in the industry have been vocal about how the ongoing uncertainty is affecting the sector. Some manufacturers have cut production and either cancelled or delayed investment. Unfortunately, this has been perhaps the key theme of 2019.”
Maybe there are a few people like me, waiting for electric cars to become cheaper before replacing their car.
My diesel will go another 50,000 miles at least before I need to think about replacing it. With the uncertainty about governmental car policy and fuels I can see no point in investing in another new car, (I would normally have replaced last year with new). The improved build-quality of cars also enables them to remain economic for a lot longer than was the case a generation ago.
It is instructive that several councils who had declared “Climate emergencies” (e.g. Bristol) have now decided to buy diesel vehicles because of the prohibitive cost of going electric.
There are many like you. I will replace my diesel car when there is some conviction that there will be charging point availability on M roads and it is cost effective. I’m far from convinced that the life cycle CO2 load is less for battery powered cars than diesel powered products. The latest generation Diesel with all its air cleaning kit is better than most petrol engines and have significantly less CO2 output.
My personal belief is that the world will use a Hydrogen based economy. Once sorted out especially the generation side everything is in place to substitute battery for Hydrogen generator and fuel cell. Fuel will probably be some activated form of Aluminium and water. Road tax will become distance dependent.
Hydrogen would solve the heavy goods and car market as well as the rail infrastructure. It would sort out Heating as well although I don’t care for adding Hydrogen to our local gas supply. Remember working on Hydrogen cooled Alternators in the 1960’s. It was gently, gently if you don’t want a big bang but it worked well before direct de-ionised water cooling came along. It was then reduced to replacing the air to cut down rotor windage losses.