The British car industry is in dire straits. This year, the corona crisis meant that far fewer cars were produced than usual, but there are also uncertainties in the air due to Brexit and the challenges of making many more electric cars.
In October, just over 110,000 cars rolled off the line in the United Kingdom, according to figures published Thursday by the trade association Society of Motor Manufacturers and Traders (SMMT). That brings the total for this year to 743,000, a third less than in the same period last year.
Like the rest of British business, car manufacturers are eagerly awaiting a Brexit deal. The European Union is the largest export market for the cars from the UK. The sector must also respond to the ban on the sale of new cars that run on fossil fuels, which will take effect in 2030. “These numbers are again bad news for an industry hit hard by Covid-19, Brexit and the unprecedented challenge of fully converting to electric cars in a decade,” said SMMT CEO Mike Hawes.
Manufacturers previously expressed concerns about the financial consequences of a no-deal Brexit. According to credit rating agency Moody’s, it would hit British car manufacturers even harder than the corona crisis.