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UK automotive manufacturing slumps in September

LONDON (Reuters) – British automotive output fell by 16.eight p.c final month, hit by new emissions rules, mannequin adjustments, commerce tensions and uncertainty over diesel coverage and Brexit, an trade physique mentioned on Thursday.

A file exhibits a visitors jam as automobiles head in direction of the strategy tunnel of Heathrow Airport, west London, Britain November 26, 2015. REUTERS/Peter Nicholls

Production stood at 127,051 items following a 19 p.c drop in home demand and a 16.2 p.c droop in exports, the Society of Motor Manufacturers and Traders (SMMT) mentioned.

Stricter emissions guidelines often called the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) turned necessary on Sept. 1, forcing sure carmakers throughout Europe to halt deliveries of some fashions that had but to be re-certified.

Britain’s automotive trade can also be nervous that when the nation leaves the European Union subsequent 12 months customs checks and tariffs might be imposed if London and Brussels fail to strike a Brexit deal, including extra prices and purple tape.

“It has been a turbulent year and the industry needs stability, something which appears elusive given the lack of resolution to Brexit negotiations,” mentioned SMMT CEO Mike Hawes.

The sector has additionally suffered as a consequence of nosediving demand for diesel and was angered by a British government announcement forward of subsequent week’s funds assertion that subsidies provided to these shopping for plug-in hybrid automobiles shall be reduce.

“The … budget next week is the perfect opportunity to stimulate the market, sending consumers and businesses the right signals to encourage the purchase of new cars, which would help bolster economic performance as well as delivering environmental goals,” mentioned Hawes.

Reporting by Costas Pitas; enhancing by Stephen Addison

Our Standards:The Thomson Reuters Trust Principles.

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