Political uncertainty still threatens industry
Positive figures announced today by the SMMT have revealed the resilience of the UK automotive industry, but political uncertainty is still a threat. This is according to Peter Barnes, partner and head of automotive sector at DWF.
He said, 'Despite the turbulence of the British political system over recent months, and uncertainty over how the British economy may attract investment and interact with Europe after 31 October, UK car production rose by 3.3% in August and monthly output for the domestic market has grown by 15.2% whilst exports remain stable.
'However, the year to date performance is down 17% as output failed to reach one million units by August for the first time in five years given the ongoing challenge of softening global demand which is compounded particularly in the UK over Brexit concerns.
'The challenge for the UK car industry remains that eight out of every 10 cars built in Britain are exported – with 55.4% going to EU countries. Our politicians therefore need to ensure that they support long term investment incentives for UK manufacturers and achieve workable trade deals that maintain free and frictionless trade.
'They also need to ensure that the UK remains an attractive location for global manufacturers, automotive component and autotech suppliers in order to enable the UK car market to be in a position to meet the global headwinds of international trade tensions, technological upheaval and the political and economic uncertainty caused by Brexit.'