Brexit: British car production plunges into chaos of "immense damage" caused by chaos in the EU | Business

Car production dropped by almost half in April with the closure of factories to prepare for a Brexit date that never materialized, sparking renewed anxiety from the British auto industry the "untold damage" caused by prolonged uncertainty.

In a slump described as "extraordinary" by the Society of Automobile Manufacturers and Traders (SMMT), 70,971 vehicles left the production lines in April, down 44.5% from 127,970 registered on same month of last year.

According to the Labor Party, the figures showed that the "mismanagement" of the government by the Brexit was already hurting carmakers, warning that the next conservative leader would not leave the EU without an agreement.

Most of the decline in production is attributable to large car companies such as Jaguar Land Rover, BMW and Peugeot, which announce annual maintenance outages that typically occur in summer.

By postponing the date of the planned shutdowns, they hoped that any disruption of their supply lines around March 29 – the original date of Brexit – would occur while the production lines were already inactive, thereby minimizing the risk of a downturn. impact.

However, the postponement of the UK's exit from the EU means that the stops, described as "expensive" by the SMMT, have proved useless.

The stops can not be repeated after the new Brexit date of 31 October, which means that car manufacturers will have to bear any slowing down of their "just in time" manufacturing processes during a production period in large scale.

Mike Hawes, Chief Executive Officer of SMMT, said: "Today's figures reflect the enormous costs and upheavals that Brexit has already caused by the uncertainty facing UK construction companies and workers. automobile.

"That's why no agreement needs to be removed from the table immediately and permanently, so that the industry can return to the goal of producing for the economy and keeping the UK in business." 'forefront of the global technology race.'

The decline in vehicle production in April was the 11th consecutive monthly decline, as previous declines were attributable to weak demand in international markets, notably those of the EU, the US and China.

However, the 44.5% drop recorded in April was much more pronounced than the 15% recorded in February and the 13% reported in March, the SMMT accusing Brexit's emergency plans.

"The change of shutdown, which can not be repeated until October 31, was part of an ongoing and costly emergency response package, including storage, streamlining, training in news Customs procedures and the re-routing of logistics, "said EMSM.

He said these measures were "all designed to try to protect business when the UK leaves the customs union and the single market".

Labor's Labor Minister Rebecca Long-Bailey said: "These alarming numbers, which show production halved, are raw warnings of what could come from a right-wing conservative leader who would collapse without agreement with the United Kingdom.

"The industry needs certainty and the government needs to work with the unions to develop a long-term strategy for the sector."

The EMGP said that if the UK left the EU with a favorable agreement and a "substantial" transition period, the decline in production would decrease by the end of the year as new models come into production.

"A Brexit without agreement could, however, exacerbate this decline, with the threat of border delays, production stoppages and additional costs compromising competitiveness."

SMMT figures show that, for the year, UK car production fell by 22.4% to 441 260, the hardest-hit exports – down 23.3%, from 18.5% of production for the domestic market.

The automotive industry is at the forefront of the concern over the effects of Brexit on businesses, with many companies warning of the dangers of a non-transaction scenario in particular.

A study published in April by the University of Oxford had predicted that the British auto industry would collapse by nearly half by the mid-2020s in the case of ## 147 ##. ################################################################################ 39, a Brexit without agreement, plant closures resulting in thousands of job losses throughout the country.