Car Production in U.K. Plunges 45%

Britain’s output of passenger cars plummeted 45% to 71,000 units in April, the Society of Motor Manufacturers and Traders reports.

SMMT blames the sharp decline on decisions made months ago by carmakers to move up their routine summer shutdowns to coincide with the U.K.’s scheduled exit from the European Union at the end of March. Companies also stockpiled parts in anticipation of disruptions in their supply chains when Brexit takes effect.

But the EU agreed at the last moment to delay the Brexit deadline to the end of October. SMMT CEO Mike Hawes warns that carmakers aren’t likely to repeat the procedure for the new date.

Hawes says the production slump underscores the “vast cost and upheaval” caused by uncertainty about the details of a final Brexit plan. “Prolonged instability has done untold damage,” he adds, with investment all but stopped over fears that a “no-deal” exit will result in higher tariffs and huge supply problems.