- Title: UK car investment slumps over 70% on no-deal Brexit fears
- Date: 31st July 2019
- Summary: SUNDERLAND, ENGLAND, UK (FILE - DECEMBER 2015) (REUTERS) VARIOUS OF BODY OF CAR ON CONVEYOR BELT VARIOUS OF WORKERS BY BODY OF CAR ON CONVEYOR BELT
- Embargoed: 14th August 2019 11:01
- Keywords: UK car investment Brexit British cars 70 percent Society of Motor Manufacturers and Traders Jaguar Land Rover 70% SMMT car sector
- Location: SUNDERLAND AND OXFORD, ENGLAND, UK / UNIDENTIFIED FILMING LOCATIONS / UNKNOWN LOCATION
- City: SUNDERLAND AND OXFORD, ENGLAND, UK / UNIDENTIFIED FILMING LOCATIONS / UNKNOWN LOCATION
- Country: United Kingdom
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA001AQ3Z2X9
- Aspect Ratio: 16:9
- Story Text: Investment in Britain's car sector fell by more than 70 percent in the first half of the year due to concerns about a disorderly Brexit, an industry body said on Wednesday (July 31), warning that leaving the EU without an agreement was the "worst outcome".
The automotive industry, Britain's biggest exporter of goods which employs over 800,000 people, is one of the most vociferous opponents of a no-deal Brexit, fearing additional tariffs and bureaucracy could halt production.
Investment fell to 90 million pounds ($109.50 million) in the first half of 2019 compared to 347.3 million pounds in the same period in 2018 and 647.4 million in the first half of 2017, the Society of Motor Manufacturers and Traders (SMMT) said.
However full-year investment, based on new publicly announced decisions on fresh spending, will be boosted by a roughly 1-billion-pound move by Jaguar Land Rover to make electric cars in Britain.
But spending has fallen every year since 2014, down from 5.83 billion pounds in 2013 to 1.1 billion pounds in 2017 and 589 million pounds in 2018.
Meanwhile production in the first six months of the year slumped 20% as the global car industry faces weakening demand in key markets, trade tensions and a fall in diesel vehicle sales in major European countries.
(Production: Thomas Newey) - Copyright Holder: FILE REUTERS (CAN SELL)
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