The number of cars built in Britain tumbled almost a fifth in January, industry data showed Thursday, rocked by China's slowdown and the threat of a no-deal Brexit. In a gloomy plot twist, James Bond's favourite carmaker Aston Martin revealed plans to set aside up to £30 million ($40 million, 35 million euros) to help weather potential Brexit disruption.
The Society of Motor Manufacturers and Traders (SMMT) meanwhile said UK car production dived 18.2 percent to 120,649 vehicles last month compared with a year earlier. That was the eighth successive monthly decline and marks the latest dose of bad news for Britain's beleaguered car sector.
Output destined for China collapsed by 72.3 percent and the European Union by 20 percent, the SMMT revealed. Overall exports tanked 21.4 percent to 93,781 vehicles. Britain's largely foreign-owned automobile industry is suffering also because of simmering US-China trade tensions and weak demand for high-polluting diesel cars - which face tighter regulation worldwide.
Turning to Brexit, the SMMT urged British Prime Minister Theresa May to take "no deal" off the table "immediately and permanently". "Another month of decline is a serious concern," SMMT chief executive Mike Hawes said in Thursday's statement. "The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology.
"But the clear and present danger remains the threat of a no-deal Brexit, which is monopolising time and resources, undermining competitiveness." Hawes added: "Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs.
"No deal must be taken off the table immediately and permanently." Britain is scheduled to leave the EU on March 29, although there has been increasing talk of a possible delay, the exact nature of its departure remains shrouded in uncertainty. Japanese carmakers Honda and Nissan both recently curbed investment in Britain, citing economic turmoil over Brexit and China, as well as weak diesel demand.
Honda announced it will close its UK car plant in south west England in 2022, putting 3,500 jobs at risk. And Nissan has cancelled plans to build its new X-Trail SUV model at its car factory in northeast England.
Elsewhere on Thursday Aston Martin, which plays a starring role in the blockbuster films of fictional British spy James Bond, said it was taking action to "mitigate the impact on the business from potential supply chain disruption should the UK withdraw from the European Union without an agreement or in an unstructured manner".
The luxury brand also posted a £68.2-million annual loss, but blamed £136 million of costs linked to its London stock market launch in October. But revenues soared by a quarter to almost £1.1 billion, aided by strong volume growth across all regions including China, as the world's appetite for high-end cars appeared to remain undimmed.
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