BREXIT Curse – UK Car Production Falls -11.3% in April

Ken Zino of AutoInformed.com on BREXIT Curse - UK Car Production Falls -11.3% in April

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UK car production fell -11.3% in April year-on-year with 60,554 units rolling off factory lines, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). The ongoing global shortage of semi-conductors, the impact of the war in Ukraine on supply chains, model changes and broader industry structural changes all contributed to a volatile month’s output.

The same applied to year-on-year export comparisons, with the closure of a major UK car plant in 2021 continuing to impact export figures, particularly to the US. 7,752 fewer cars were made in the month than a year before and the total was -14.7% below the April 2019 pre-pandemic level.

Overall car output itself down -44.5% compared to April 2018, due to shutdowns rescheduled to mitigate against the possibility of a no-deal Brexit1 as that folly continues to haunt the industry and the government with strong independence movements growing in Ireland and Scotland.2

The overall picture was mixed, as production output for overseas markets fell by -20.8%, driven by a -68.0% decline in shipments to the US, and a -10.4% drop in those to Asia.

“The UK car industry is exposed to a host of issues that are undermining output and competitiveness. Global chip shortages and supply chain disruption are exacerbated by spiraling energy costs, additional trading costs and slowing global markets. The foundations of the sector are strong and the transition to zero and ultra-low emission vehicles continues apace, but we need more policies and measures that support manufacturing and encourage investment into the UK at this most challenging of times,” said Mike Hawes, SMMT Chief Executive.*

UK car makers continue towards the latest battery electric, plug-in hybrid and hybrid vehicles, technologies that are essential to both cleaner air and plant saving net-zero goals. More than one-in-four (26.4%) cars made in April was electrified, equivalent to 16,010 units, up 2.1% on the same month a year ago, boosted by battery electric vehicle output up 38.2% (to 9.9% share).

1: BREXIT Folly was an economy killing series that ran for ears before becoming the expensive flop show it is today. No wonder Boris Johnson was drinking during the COVID shutdowns. Britain has been part of a club of countries called the European Union, or EU, since 1973. In a referendum, held on 23 June 2016, the majority of adult Britons voted to leave the EU. On 29 March 2017 the countdown to the UK formally leaving the EU, also known as Brexit, began. See The BBC for the running dates and key episodes. As to the need for strong alliances, economic or military, see Putin’s war on Ukraine.

2: 70,971 cars made April 2019, compared with 127,970 in April 2018, as factory shutdowns, rescheduled to mitigate against the expected uncertainty of a 29 March no-deal Brexit, took effect in many plants across the UK.

*SMMT and UK automotive industry

The Society of Motor Manufacturers and Traders (SMMT) is one of the largest trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting the industry to government, stakeholders and the media. More than 30 manufacturers build more than 70 models of vehicle in the UK, supported by more than 2,500 component providers

The automotive industry is a vital part of the UK economy, and integral to supporting the delivery of the agendas for leveling up, net zero, advancing global Britain, and the plan for growth. It contributes £60 billion turnover and £12 billion value added to the UK economy, and invests around £3 billion each year in R&D. With more than 155,000 people employed directly in manufacturing and some 800,000 across the wider automotive industry, it accounts for 11% of total UK exports with more than 150 countries importing UK produced vehicles, generating more than £73 billion of trade. The automotive sector also supports jobs in other key sectors – including advertising, chemicals, finance, logistics and steel.

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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