World Print edition: 2020-01-31

UK car output crashes in 2019 on bumpy road to Brexit

Published Updated

Britain's car output crashed last year to a near-decade low, hit by delays to Britain's exit from the European Union, industry data showed Thursday.

The nation's production dived 14.2 percent to 1.3 million vehicles in 2019 from the previous year, the Society of Motor Manufacturers and Traders (SMMT) revealed on the eve of Britain's long-awaited departure from the EU.

That was the lowest annual production level since 2010, according to the SMMT industry organisation that also blamed weak consumer confidence worldwide and poor demand for high-polluting diesel cars. Factory shutdowns in the face of last year's Brexit delays had a "marked" impact on the sector, it noted.

The nation's EU departure was originally scheduled for March 29, 2019, but was then delayed three times owing to deadlock in Britain's parliament. It will now occur finally on Friday. Going forward, SMMT Chief Executive Mike Hawes repeated the industry's call for a free trade agreement that includes no tariffs, to help carmakers.

Britain's car industry, which is largely foreign-owned, employs around 160,000 people in the country and is eager for a post-Brexit Brussels trade deal that will safeguard its future. In a separate development on Thursday, Jaguar Land Rover announced that its long-serving chief executive Ralf Speth would step down in September. His departure follows a tough time for Indian-owned JLR, having cut thousands of jobs in recent years owing to slowing sales.