UK car manufacturing doing good but industry warns of Brexit impact

by SpeedLux
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British vehicle manufacturing struck a 16-year high in the very first half of 2016, but the market states future growth, tasks and financial investment are at danger following the Brexit vote.

Nearly 900,000 automobiles rolled off production lines at UK factories in the very first 6 months of the year, 13% more than the same duration in 2015.

It was the very best half-year performance from 2000, according to the Society of Motor Manufacturers and Traders (SMMT), as billions of dollars of earlier investment in new models pertained to fruition.

About 78% of the automobiles integrated in UK factories in the very first half-year were destined for other countries, with the EU the greatest market.

Mike Hawes, the SMMT’s chief executive, stated the outlook for UK automobile production doubted now that Britain had decided to pursue a future outside the EU.

The SMMT said a survey of its members– which consist of major automobile makers such as Nissan, Toyota and Mini as well as smaller sized companies– revealed that companies were stressed about Britain’s relationship with the rest of Europe following the Brexit vote.

About 60% of parts provided for vehicles constructed in the UK are imported, primarily from the continent. Of the members the SMMT surveyed, 57% believed Brexit would have a negative effect on their investment.

The most significant concern was the potential unfavorable effect of tariffs, customized charges and other barriers in between the UK and the EU single market.

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