With the industrial problems of the 20th Century long forgotten, it seemed as if Great Britain had secured a strong and burgeoning future for the car industry with the likes of Nissan, Toyota and Honda among the foreign brands building cars in the UK. Alongside them are Mini, Rolls-Royce, Bentley, Jaguar Land Rover and Vauxhall, despite this latter group all being foreign owned, the cars are still made in Britain. Things were looking good and jobs seemed secure.
Drop In Production
Sadly our politicians and their European counterparts had other ideas and we are, like trapped bog-snorkelers, now mired in the gloopy Brexit mud-bath of confusion and uncertainty. It’s had a knock-on effect too: Official figures show that UK car output fell fourteen percent this March. Only 126,195 cars were made. That’s the tenth consecutive monthly drop, thanks to the combined issues of a slowdown in foreign markets like China and of course the Brexit insecurity.
Not for the first time the industry has repeated its warning that the sector stands to suffer a lot more if the country leaves the European Union without a deal, pointing to exports which account for nearly four out of every five cars made in Britain, being down by thirteen percent. Further they predict that output would fall in 2019 to 1.36 million vehicles from 1.52 million last year and that’s assuming, in their view – and, for balance, it is an opinion that is not universal - that some form of transitional deal is done.
It wasn’t that long ago that the motor industry was on track to produce two million new vehicles by 2020. That aim now seems impossible with our international reputation as a stable and attractive business environment undermined. Thus the forecast, should we rely on World Trade Organization rules which may include import tariffs, when trading with the EU is grim with a strong reduction in builds with consequent damage to employment. Of course, nobody really knows how the pendulum will swing; it may be that the industry will ride the storm but from the cheap seats it is not looking good.
Waiting With Bated Breath
And so we wait, making sure not to hold our breath for a speedy resolution. The government has delayed the Brexit deadline until October to try and resolve this thorny issue. If our politicians and the negotiators on the other side of the channel are to sort this out then they need to pull a rabbit from the hat a bit sharpish. It is after all a matter of economics when you come down to it and we can but hope they all see sense because it affects us all. In the meantime here at eCars247 we have a great selection of cars that are ready to go now. Talk to us about our part-exchange service
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