RSM comments on UK car production growth figures

Commenting on UK car production growth figures announced by the Society of Motor Manufacturers and Traders (SMMT) today, Nick Greenwood, business development lead for manufacturing at RSM, said:

‘It’s evident that the UK car production market has made great strides this year with double digit growth in June and the best half year performance since 2000. It would be great to see the sector build on this momentum moving forward, however there is widespread uncertainty following the Brexit decision that could impact this upward trend.

‘There hasn’t been any short term impact as yet but the weak pound could present key opportunities for exporters, and with 77 per cent of UK cars going to overseas markets this could certainly make UK cars more appealing, although exchange rate volatility and our large imports on car parts could curtail this. The worry is longer term impact and where the dust will settle. 

‘A recent survey by EEF showed that manufacturers were most concerned over what conditions would look like in the next 6-12 months with 29 per cent bracing themselves for a decline in orders. To ensure we safeguard not only industry growth, but the jobs of the skilled people who drive the overall UK manufacturing industry, we must ensure negotiations focus on the key areas of tariff free trade with the single market and the free movement of labour.’