The SMMT today announced that investment into the UK's automotive industry has almost halved in H1 2018 versus H1 2017. Brexit is the primary culprit, with major manufacturers facing uncertainty on the UK's future trading arrangements with the EU. Until clarity is given, we anticipate other multinational corporations will openly express similar concerns to those of BMW.
All of this uncertainty means manufacturers are thinking twice about their investment decisions in the UK, or deferring their investments until clarity is given. Other manufacturing sites around the world will compete heavily to win new model lines and expansion plans at the expense of the UK, particularly in EV and hybrid vehicle manufacturing. It remains to be seen whether the UK automotive sector will prosper from Brexit, or whether it will be left in the slow lane. Either way, we will be following it closely and monitoring investor sentiment through our contacts at international corporate acquirers.
Investment in Britain’s car industry has halved because of uncertainty about the UK’s future relationship with Europe, the country’s motor industry lobby group said on Tuesday. Spending in the first six months of the year was £347.3m, compared with £647m for the first half of 2017, according to figures published on Tuesday by the Society of Motor Manufacturers and Traders. The SMMT, which holds its annual conference in London on Tuesday, has also warned that time is running out for government to offer clarity over key industry concerns such as trading conditions with Europe, as several manufacturers urgently face key decisions about whether to build future models in Britain or send the work overseas.