Car Production in U.K. Hits 9-Year High

The U.K.’s output of new vehicles grew 8% to 147,900 units in January, its greatest volume for the month since 2008, according to the Society of Motor Manufacturers and Traders.

Exports, which account for 77% of output, climbed 11%. Production for the home market dropped 4% to 30,000 vehicles.

But SMMT warns that sustaining such results will hinge upon the U.K.’s ability to negotiate tariff-free access to mainland Europe, its largest market, when the country exits the EU roughly two years from now.

If that trade goal proves unattainable, manufacturers in the U.K. could face export taxes as great as 10% on vehicles going to Europe. Analysts say such an outcome would be all but certain to trigger significant shrinkage in the British auto industry.