Because of the March 29 Brexit, many car factories in the UK decided to close down to cope with the disruption. Consequently, the production last April went down by around 45%. According to the Society of Motor Manufacturers and Traders (SMMT), even with the delayed Brexit, many factories still closed down. The organization describes April as ‘an extraordinary month,’ with only 70,971 cars rolling off the production lines. The output was around 57,000 fewer than in April a year ago.
According to the SMMT, shutting down the factories was part of a range of costly measures that automotive companies had to take to cope with the disruption caused by Brexit. Other procedures they had to take include training of new customs procedures, stockpiling, and rerouting of logistics. SMMT chief executive Mike Hawes said that the figures show the ‘vast cost and upheaval’ that the Brexit uncertainty brought to the UK car manufacturing industry. He added that prolonged instability has stalled investments, lost jobs, and undermined the EU’s global reputation.
A Slowdown in the Global Automotive Industry
There has been a continuous slowdown in the global automotive industry due to various factors, including the trade tensions between China and the US, tougher emissions control after the VW scandal, and the uncertainties over the arrival of self-driving and electric cars. Now, the situation has become worse because of the stoppages in the factories.
The SMMT estimated that the total Car Production for 2019 may be about 10% down from last year. It would have been possible for the market to pick up towards the end of the year. This would have been likely if there was a favorable deal between the EU and the UK, allowing substantial time for transitioning to trading outside the single market. Unfortunately, the car production stoppages, the threat of border delays, and additional costs brought about by the no-deal Brexit would make the declines worse.
People Delaying Buying New Cars Due to Brexit
According to recent automotive news, car buyers in Britain have been delaying their purchase due to the uncertainty that Brexit brought. According to BuyaCar’s research, these people have decided to delay their purchase for their next car for at least two years. The study cited Brexit as the primary reason behind the motorists’ decision. After the historic EU referendum, it is expected that about 47.5% of new car buyers plan to hold onto their existing vehicles for at least the next two years.
Used JDM Cars: The Better Option
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