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UK Car Manufacturing Output Declines in October

UK Car Manufacturing Output Declines in October

According to figures published on the car manufacturing industry, output declined in October with falling domestic demand and strengthening exports strengthening once more.

The Society of Motor Manufacturers and Traders (SMMT) said that UK car manufacturing in October fell by 5% on the preceding month and 1% year on year to 151,795 units.

Following the 10.6% decline last month, production for the domestic market fell by 10.9% year on year.

However domestic demand is still strong despite the fall, with production in the year so far up 3.3% at its highest level since 2005.

Out of the total, 122,765 or 80.9% were exported to customers overseas, with exports continuing to rise year on year for the 15th month in succession by 1.7% but compared to September, exports slipped slightly from 123,119 units.

Although car production stalled in October, the industry is still in a strong state with more than 1.4 million cars produced so far in 2016, hitting a 17 year record at the same time as uncertainty over the UK industry’s position in the global market post Brexit has prompted manufacturers to urge the government to help protect the sector in trade negotiations.

The government has given Nissan promises of “support and assurance”  in a bid to persuade the Japanese car manufactuer to build both the new Qashqai and the X-Trail SUV at its plant in Sunderland.

Mike Hawes, Chief Executive of SMMT, commented: “Given this dependence on global trade, it is crucial that British-built cars remain attractive to international buyers and exports are not subject to additional tariffs, costs and other barriers to successful trade.

It is also essential government ensures there is economic stability and a competitive business environment to ensure we continue to attract the global investment that is behind this performance.”

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