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Report: U.K. Car Output Could Fall 8% by 2023
The British auto industry will see production shrink 8% over the next five years if the government fails to avoid European tariffs after the U.K. exits the European Union.
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The British auto industry will see production shrink 8% over the next five years if the government fails to avoid European tariffs after the U.K. exits the European Union.
So says a forecast by AutoAnalysis Ltd. made on behalf of the Society of Motor Manufacturers and Traders. SMMT notes that carmakers will be making decisions over the next 12 months about whether to build next-generation models in the U.K. or elsewhere.
If those models are relocated, production in the U.K. will fall to 1.6 million units by 2023 from 1.7 million in 2017, according to AutoAnalysis. It figures that output will climb 6% to 7 million over the same period if carmakers decide to assign the new models to British factories.
Investment in the British auto industry plunged to £1.1 billion ($1.6 billion) last year from £1.6 billion in 2016 and £2.5 billion in 2015. SMMT Chief Executives Mike Hawes warns that a lack of clarity about trade conditions after Brexit could push the British auto industry over a “cliff edge” by 2020.
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