Investment in UK Car Industry Has Taken a Nosedive Since Brexit Vote

Car manufacturing in the UK is threatened by lack of clarity on post-Brexit trade deals with the EU.
Photo by Land Rover MENA (Creative Commons).

The Financial Times reports that investment in the UK car industry has plummeted since the June 2016 referendum, having fallen to £322m during the first half of 2017, according to industry data compiled by SMMT.

Investment during 2016 within this sector was £1.66bn, which marked a 30 percent decline over 2015’s £2.5bn. If the current downward trend continues, total investment in the UK car industry during 2017 will total just one-quarter of what it was two years ago. What’s more, the majority of 2017 investment so far comes from Toyota, which made a £240m investment at its Burnaston plant in Derbyshire.

Mike Hawes, chief executive of the SMMT, said of the position of car makers awaiting clarity on a post-Brexit trade deal:

“It’s very difficult to cost investment if you don’t know what your output price is going to be. The industry wants a lot more certainty.”

Source: Investment in UK car industry plummets amid Brexit uncertainty