UK car output down 1.4% for November, Brexit deal needed: SMMT

[LONDON] British car production fell only slightly in November but output is down by almost a third so far in 2020 due to Covid-19 restrictions and the approach of a possible Brexit shock at the end of this month, an industry body said.

Production fell year-on-year by 1.4 per cent last month to 106,243 vehicles but the comparison was flattered by a weak November 2019 when some plants were closed due to Brexit concerns, the Society of Motor Manufacturers and Traders said.

Year-to-date production so far in 2020 was down 31 per cent.

"Yet another decline for UK car production is of course concerning, but not nearly as concerning as the New Year nightmare facing the automotive industry if we do not get a Brexit deal that works for the sector," SMMT chief executive Mike Hawes said.

Even if London and Brussels strike a trade deal to avoid trade tariffs before a Dec 31 deadline, it is almost impossible for automotive businesses to be ready, the SMMT said.

Flexible rules-of-origin thresholds for hybrid vehicles and batteries, and a phase-in period to allow supply chains to adapt would be needed as part of any agreement, as well as a 12-month grace period for supplier declarations on both sides, it said.

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REUTERS