Sharp drop in number of cars rolling off UK production lines
The number of cars being built in the UK has been slashed by almost a fifth as manufacturers cope with a slowdown in demand.
It raises fresh fears about the impact on the hundreds of West Midlands companies that rely on supply contracts with the country's big car makers.
There have already been reports of auto component companies suspending investment and recruitment plans and laying off agency workers.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show car making last month was down by almost 17 per cent, with 25,610 fewer cars rolling off production lines than in the same month last year, capping off a 'turbulent' year.
Global trade tensions, model changes and uncertainty over diesel and Brexit were exacerbated by testing backlogs due to new emissions regulations, the society said.
A total of 127,051 cars were made as production fell for both home and overseas markets, down year on year by 19 per cent and 16.2 per cent respectively. Exports continued to drive volumes, accounting for eight out of every 10 cars produced.
The latest figures come as the UK's biggest car maker, Jaguar Land Rover, has shut down production at its 300 acre Solihull plant for a fortnight while its Castle Bromwich Jaguar factory is on a three-day week until Christmas.
The SMMT says that in the year to date, output has declined by 6.6 per cent, driven mainly by falling UK demand, currently down 18.6 per cent, but compounded by slower growth across Europe.
Mike Hawes, SMMT chief executive, said: "Today's figures highlight the many competing challenges facing UK Automotive. It has been a turbulent year and the industry needs stability, something which appears elusive given the lack of resolution to Brexit negotiations.
"The UK Government has recognised the importance of a deal that maintains free and frictionless trade with the EU, but it is up to all sides to deliver this to safeguard the hundreds of thousands of jobs depending on the sector.
"Stability is also needed at home and a stronger UK new car market would go a long way to boosting manufacturing output.
"The Chancellor's Budget next week is the perfect opportunity to stimulate the market, sending consumers and businesses the right signals to encourage the purchase of new cars, which would help bolster economic performance as well as delivering environmental goals."
