DWF logo


DWF logo

            Political uncertainty stalls UK car production

            Jonathan Moss, Head of Transport at DWF comments on the SMMT UK car production figures for October 2019.

            Date: 28/11/2019

            This 4% fall in UK car production last month stems from a fear among manufacturers of a post-Brexit imposition of a 10% tariff on exports under World Trade Organisation terms. This would have an adverse impact on manufacturing costs (both in terms of imported car components and exported cars), rendering manufacturers considerably less competitive than their foreign counterparts.  This is further compounded by the SMMT warning earlier this week that a no-deal Brexit would cost the UK car industry £40bn by 2024.

            In anticipation of possible post-Brexit disruptions, global firms – including Toyota, BMW and Jaguar Land Rover - have already shut down production lines. Nissan – which supports 30,000 jobs in Britain - went even further to state that a no-deal Brexit would jeopardise Nissan's entire European business model. The potential effects of a decline in the automotive sector in the UK are wide-reaching and indeed, in April this year, the unseasonal fall in car output pushed down UK GDP by 0.2 percentage points.

            As such, to remain competitive, it is crucial that we curb this industry decline through our political leaders securing a close trading relationship on any departure from the EU.


            Related people

            Jonathan Moss

            • Partner // Global Head of Transport Sector // Head of Marine & Trade

            We use cookies to give you the best user experience on our website. Please let us know if you accept our use of cookies.

            Learn More

            Your Privacy

            When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. We mainly use this information to ensure the site works as you expect it to, and to learn how we can improve the experience in the future. The information does not usually directly identify you, but it can give you a more personalised web experience.
            Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change permissions. However, blocking some types of cookies may prevent certain site functionality from working as expected

            Functional cookies


            These cookies let you use the website and are required for the website to function as expected.

            These cookies are required

            Tracking cookies

            Anonymous cookies that help us understand the performance of our website and how we can improve the website experience for our users. Some of these may be set by third parties we trust, such as Google Analytics.

            They may also be used to personalise your experience on our website by remembering your preferences and settings.

            Marketing cookies

            These cookies are used to improve and personalise your experience with our brands. We may use these cookies to show adverts for our products, or measure the performance of our adverts.