Brexit wrecks UK car industry as figures show worsening production

Basit Mahmood 

Yesterday
Left Foot Forward 

'If you’re not in the EU, you’re at a major disadvantage'

Yet another disastrous consequence of Brexit. The UK car industry continues to suffer as a result of the decision to leave the EU, with the latest figures showing that UK car output slumped for the eighth consecutive month in October.

Bloomberg reports that production dropped 15% last month from a year ago, according to the Society of Motor Manufacturers and Traders. The site reports: “The group said Thursday that independent forecaster AutoAnalysis lowered its 2024 and 2025 projections for car and light van output by 12% and 16% from what it was expecting this time last year.”

It comes as the owner of Vauxhall announced plans this week to close its van-making factory in Luton, putting about 1,100 jobs at risk.

Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said it would combine its electric van production at its other UK plant in Ellesmere Port in Cheshire. Rules imposed to speed up the transition to electric vehicles (EV) in the UK partly drove the decision, the firm said.

However, Brexit has also played a significant role. Andrew Graves, a professor at the University of Bath with over 50 years’ experience within the UK car industry, told the Independent that the long-running problem is Brexit.

“If you’re not in the EU, you’re at a major disadvantage,” he said, highlighting how leaving the EU has added extra expense and red tape in importing and exporting cars.

British factories built only 775,014 cars during 2022, the lowest annual figure since 1956. Production fell 9.8% from 2021, and declined 41% from 2019.

Basit Mahmood is editor of Left Foot Forward