Car production hits 16-year high

MORE cars were produced in the first half of 2016 than in any year since 2000 as the UK car industry continues to drive volumes upwards.

However the Society of Motor Manufacturers and Traders (SMMT) has warned future growth was uncertain amid concerns of the impact of Brexit on the industry.

897,157 cars rolled off production lines in the six months to June – more than 100,000 cars than the same period last year.

June itself had a 10% increase in production and was the 11th consecutive month of growth, maintaining a trend stretching back six years.

SMMT chief executive Mike Hawes warned the increase in production is the “result of investment decisions made over a number of years” and pre-date talk of a referendum.

He said: “These decisions were based on many factors but, primarily, on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce.

“To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”

A survey of SMMT members found only one-in-twelve thought Brexit would be positive while more than one-in-four were unsure about the impact. However 57% believed the impact for their business would be negative.

Rolling annual car production figures to June 2016 (source: SMMT):

 

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