https://www.ft.com/content/0c3427b2-...8-8055f264aa8b
Maybe beard-shaping and yurt-building are indeed the British industries of the future.
"Investment in the UK car industry has fallen to just £322m in the first half of 2017, in a sign that companies are delaying or cancelling spending ahead of the UK leaving the EU.
Last year £1.66bn was invested in the auto sector, more than 30 per cent down from £2.5bn in 2015, as carmakers and their suppliers delayed non-essential investment following the EU referendum in June 2016.
But investment looks to have fallen even further in the first six months of this year, according to figures compiled by the Society of Motor Manufacturers and Traders, an industry body.
If the same levels of investment are seen in the second half of the year, it would bring total annual spend on the UK car industry to just £644m — nearly one-quarter of the amount invested two years ago and a sharper fall than many in the industry had expected.
“It’s very difficult to cost investment if you don’t know what your output price is going to be,” said Mike Hawes, chief executive of the SMMT, pointing to Brexit-related uncertainty. “The industry wants a lot more certainty.”
The SMMT has called for an interim agreement for the UK to remain in the customs union for “as long as it takes” to allow the UK to iron out a comprehensive trade deal with the EU, warning that a “cliff edge” where Britain leaves the customs union and single market in 2019 would “permanently damage” the UK car industry.
The British car industry has enjoyed a renaissance in recent years, fuelled by international investment and record car sales across Europe and the UK.
Production rose to 1.7m vehicles last year. But last week the SMMT reported that output of UK cars had fallen almost 10 per cent in May compared with last year, the second straight month of year-on-year decline.
When carmakers allocate new models, their manufacturing plants around the world bid for the work. Historically, the UK has fared well in bidding for business from such carmakers as Nissan, Honda, Toyota and Vauxhall.
But last year’s Brexit vote has thrown future investment decisions by international companies, including model allocations into UK car plants, into uncertainty.
BMW recently said it may begin making the electric Mini outside of the UK, saying that “the result of the EU referendum creates uncertainty for the automotive sector in general and for overseas investors in particular”.
“Uncertainty is not helpful when it comes to making long-term business decisions,” BMW said.
Maybe beard-shaping and yurt-building are indeed the British industries of the future.
"Investment in the UK car industry has fallen to just £322m in the first half of 2017, in a sign that companies are delaying or cancelling spending ahead of the UK leaving the EU.
Last year £1.66bn was invested in the auto sector, more than 30 per cent down from £2.5bn in 2015, as carmakers and their suppliers delayed non-essential investment following the EU referendum in June 2016.
But investment looks to have fallen even further in the first six months of this year, according to figures compiled by the Society of Motor Manufacturers and Traders, an industry body.
If the same levels of investment are seen in the second half of the year, it would bring total annual spend on the UK car industry to just £644m — nearly one-quarter of the amount invested two years ago and a sharper fall than many in the industry had expected.
“It’s very difficult to cost investment if you don’t know what your output price is going to be,” said Mike Hawes, chief executive of the SMMT, pointing to Brexit-related uncertainty. “The industry wants a lot more certainty.”
The SMMT has called for an interim agreement for the UK to remain in the customs union for “as long as it takes” to allow the UK to iron out a comprehensive trade deal with the EU, warning that a “cliff edge” where Britain leaves the customs union and single market in 2019 would “permanently damage” the UK car industry.
The British car industry has enjoyed a renaissance in recent years, fuelled by international investment and record car sales across Europe and the UK.
Production rose to 1.7m vehicles last year. But last week the SMMT reported that output of UK cars had fallen almost 10 per cent in May compared with last year, the second straight month of year-on-year decline.
When carmakers allocate new models, their manufacturing plants around the world bid for the work. Historically, the UK has fared well in bidding for business from such carmakers as Nissan, Honda, Toyota and Vauxhall.
But last year’s Brexit vote has thrown future investment decisions by international companies, including model allocations into UK car plants, into uncertainty.
BMW recently said it may begin making the electric Mini outside of the UK, saying that “the result of the EU referendum creates uncertainty for the automotive sector in general and for overseas investors in particular”.
“Uncertainty is not helpful when it comes to making long-term business decisions,” BMW said.
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