Brexit: Car investment halves as industry hits 'red alert'

Investment in the UK car sector almost halved last year and output tumbled as Brexit fears put firms on "red alert", the industry's trade body said.

Inward investment fell 46.5% to £588.6m last year from £1.1bn in 2017, the Society of Motor Manufacturers and Traders (SMMT) says. Production fell 9.1% to 1.52m vehicles, with output for the UK and for export falling 16.3% and 7.3% respectively.


Brexit uncertainty has "done enormous damage", said SMMT chief Mike Hawes. But the impact so far on output, investment and jobs "is nothing compared with the permanent devastation caused by severing our frictionless trade links overnight, not just with the EU but with the many other global markets with which we currently trade freely," he added.

"With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert," he said.

Politicians must do whatever it takes to avoid a no-deal, he said. His gloomy prognosis follows strong warnings from other business groups on Wednesday.

Carolyn Fairbairn, director-general of the CBI, said Tuesday's vote to renegotiate the UK's withdrawal deal "feels like a real throw of the dice".

Stephen Kelly, chief executive of Manufacturing Northern Ireland, told the BBC that firms there were "in despair and really confused" about what was going on.

Mr Hawes said that, despite the Commons vote on Tuesday evening, "nothing has changed".

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