UK car production falls almost 10% 0

UK-car-production-falls-almost-10A sharp drop in the amount of cars produced in the UK last month has been blamed on manufacturers preparing their production lines for a glut of new models.

This is the second month in succession that vehicle assembly has slowed in the UK.

Since the Brexit referendum this time last year, the car sector has been one of the most vociferous in its list of demands. A fall of 9.7% was reported during May, compared to the same time last year where growth of 26% was declared.

The society of Motor Manufacturers and Traders (SMMT) said 136,119 new cars were built, the largest drop-off coming from vehicle produced for the domestic market and prices and taxes rise on many new cars.

The amount of cars manufactured for export also fell, despite the recent CBI report showing that demand was at its highest level since 1988.

The high demand for the produce of ‘made in Britain’ companies, is the product of a weaker pound since the decision to leave the EU as British goods are now more competitive abroad.

As much as 80% of cars made in the UK are exported abroad, over half going to Europe.

Commenting on the latest figures, SMMT chief executive Mike Hawes said: “After a record start to the year, car production in the UK has slowed as production lines gear up for a range of new models.

“Global demand is strong and exports remain the driving force for British car production volumes in the UK.

“Maintaining our current open trade links with Europe, our biggest market, and further developing global markets is vital for this sector.”

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