“Perfect Storm” Cuts Car Production in U.K.

British production of cars shrank 5% in June, dragged down by a one-time 47% drop in output for the domestic market, the Society of Motor Manufacturers and Traders reports.

Exports, which account for more than 80% of the U.K.’s new-car output, rose 6% last month. But SMMT says the gain was offset by a slump in production of vehicles for local sales.

The group blames a “perfect storm” of model cycles, plant production changes and prep work to meet Europe’s new Worldwide Harmonized Light-Duty Vehicles Test Procedure.

Car production in the U.K. through the first half of 2018 fell 3% to 834,400 units, according to SMMT. The group warns that, if the U.K. leaves the European Union next spring with no new trade agreements in place, British car production could plummet.