Engineering news
The Society of Motor Manufacturers and Traders (SMMT) announced today that the new car market fell by 20.5% in September, chief executive Mike Hawes blaming supply “bottlenecks” after the introduction of the tougher Worldwide Harmonised Light Vehicle Test Procedure (WLTP) on 1 September.
The announcement was part of a double blow for the automotive industry, as Nissan – which employs almost 8,000 people – warned of potential “serious implications” from a so-called hard Brexit in a statement to The Guardian.
Purchases of new cars fell for private buyers, fleets and businesses in September, by -20.1%, -22.4% and -6.3% respectively.
Crucial period
The 20.5% drop is "astonishing", said said Alex Buttle, director of car sale comparison site Motorway. “We are now entering a crucial and unprecedented period for the car industry... It’s likely to be a rollercoaster ride for new car sales figures for the foreseeable future, but it feels like we have just plunged into a deep canyon.”
He added: “Brexit will start to weigh much heavier on the shoulders of the car industry over the coming months, particularly if a deal isn't thrashed out with the EU. And either way, we don't really know how consumers are going to react."
No surprise
The WLTP tests cars at faster speeds, over longer distances and is more dynamic, with a greater range of engine load, gear changes and temperatures. New cars must also now undergo four days of on-road Real Driving Emissions testing.
“With the industry given barely a year to re-approve the entire European model line-up, it’s no surprise that we’ve seen bottlenecks and a squeeze on supply,” said Mike Hawes. “These are exceptional circumstances with similar declines seen in other major European markets. The good news is that, as backlogs ease, consumers and businesses can look forward to a raft of exciting high-tech cars and a market keen to recover lost momentum.”
Brexit warning
Nissan followed other high-profile manufacturers such as Airbus and BMW to warn about the potential negative effects of a hard Brexit. Frictionless trade enabled the Japanese firm’s Sunderland plant to become the biggest factory in the history of the UK car industry, the company told The Guardian.
The statement added: “Today we are among those companies with major investments in the UK who are still waiting for clarity… we urge UK and EU negotiators to work collaboratively towards an orderly balanced Brexit that will continue to encourage mutually beneficial trade.”
The introduction of tariffs if free trade with the EU ends after Brexit could have a major impact on the industry. Roughly 80% of cars produced in the UK are exported, 54% going to EU member states.
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