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Investment in British car industry has plummeted

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    Investment in British car industry has plummeted

    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.
    Hard Brexit now!
    #prayfornodeal

    #2
    There's an echo in here.

    In here.

    Here.

    Comment


      #3
      Originally posted by ChimpMaster View Post
      There's an echo in here.

      In here.

      Here.
      Yeah, nobody told Nissannnnnnn.......... Nissan to increase production at Sunderland plant by a fifth
      Public Service Posting by the BBC - Bloggs Bulls**t Corp.
      Officially CUK certified - Thick as f**k.

      Comment


        #4
        Originally posted by Fred Bloggs View Post
        Yeah, nobody told Nissannnnnnn.......... Nissan to increase production at Sunderland plant by a fifth
        The article didn't say investment fell to zero.
        And perhaps increased production may be achieved without further investment, perhaps by increasing shifts in an existing plant.

        Which part of ...

        "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."

        ... are you struggling to understand?

        A falll of that magnitude doesn't bode well for the future of the industry.
        Hard Brexit now!
        #prayfornodeal

        Comment


          #5
          Originally posted by Fred Bloggs View Post
          Yeah, nobody told Nissannnnnnn.......... Nissan to increase production at Sunderland plant by a fifth
          The investment in the Sunderland plant could be worth up to £14m, it was reported.
          That's pocket change for this industry

          Earlier this year, Nissan said it would build two new models - the new Qashqai and X-Trail - at the plant after the government promised that competitiveness would not be damaged by Britain’s departure from the EU.

          Mrs May met with Nissan boss Carlos Ghosn last year and gave him reassurances that Nissan would not suffer because of Brexit.
          Take a guess at who is footing the bill...

          Comment


            #6
            Originally posted by sasguru View Post

            Maybe beard-shaping and yurt-building are indeed the British industries of the future.
            If I were you I'd be pressing for whinging to be a growth industry.

            You and the other gurning twunts on here could make a real killing.



            The rest of us will just keep having a life.............

            “The period of the disintegration of the European Union has begun. And the first vessel to have departed is Britain”

            Comment


              #7
              Originally posted by ChimpMaster View Post
              There's an echo in here.

              In here.

              Here.
              Why have you got your head in Sue Ellen's pants?
              What happens in General, stays in General.
              You know what they say about assumptions!

              Comment


                #8
                Originally posted by shaunbhoy View Post
                If I were you I'd be pressing for whinging to be a growth industry.

                You and the other gurning twunts on here could make a real killing.



                The rest of us will just keep having a life.............

                Three-quarters of investment lost. You've got to admit that's fucking huge.
                Hard Brexit now!
                #prayfornodeal

                Comment


                  #9
                  Originally posted by sasguru View Post
                  Three-quarters of investment lost. You've got to admit that's fucking huge.
                  Was there any guarantee of investment figures given?

                  E. G. If the UK had not voted to leave the relevant companies would have guaranteed to invest x?

                  Comment


                    #10
                    Originally posted by original PM View Post
                    Was there any guarantee of investment figures given?

                    E. G. If the UK had not voted to leave the relevant companies would have guaranteed to invest x?
                    It was above 2 billion for the 5 years previous to 2016. It fell drastically in 2016 and 2017.
                    Could be a coincidence, I suppose
                    Hard Brexit now!
                    #prayfornodeal

                    Comment

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