According to figures released by the Society of Motor Manufacturers and Traders (SMMT), UK car manufacturing output fell 18.2 per cent in October. 110,179 units left UK factories during the month, 24,490 fewer cars than were made in October 2019, with the impact of coronavirus and fresh lockdowns at home and overseas subduing demand in many key markets.
Over the past weeks, the National Franchised Dealers Association (NFDA) has written to HMRC and a number of MPs to highlight that under post-Brexit EU VAT rules, the sale price of a significant proportion of used vehicles in Northern Ireland (NI) will be subject to a 20 per cent increase for stock purchased in Great Britain (GB). NFDA has urged HMRC to resolve the issue before the end of the year to avoid a major impact on NI and GB vehicle dealers as well as consumers.
In May, analysts reported that Q2 European trailer registrations were 44 per cent down and that full-year 2020 trailer registrations were set to be down north of 28 per cent. Now however, the same analysts – Clear International – are echoing the findings of other indicators and suggesting that things will turn out slightly better than expected this year.
The Society of Motor Manufacturers and Traders (SMMT) has again urged both sides to re-engage the Brexit negotiation process with vigour in order to achieve a satisfactory deal. Bringing its latest calculations to the table, the industry association stresses that ‘no deal’ is a high stake gamble not only for the automotive sector but also for hopes of a green recovery from the coronavirus crisis.
The impact of the coronavirus crisis and potential effects of Brexit are making planning beyond the short term almost impossible in the remarketing sector, reports the Vehicle Remarketing Association (VRA). The association says the currently booming market is arguably obscuring the potential dangers that lie ahead. Chair Sam Watkins said: “As has been widely reported, the sector is very, very busy and we are seeing highly unusual trends such as car and van values continuing to rise through the Autumn when they would normally be written down.”
UK-EU negotiations for a post-Brexit trade deal resume for their seventh round in Brussels today (18 August). David Leggett, automotive analyst at data and analytics company GlobalData, stresses the importance of a trade deal to the UK’s automotive industry.
Car industry analysts have outlined the compound challenge facing the UK’s car sector following the publication of the Society of Motor Manufacturers and Traders’ half-year figures. The stats show that the first half of 2020 yielded the lowest level of UK car manufacturing since the 1950s. Edwin Kemp, head of automotive strategy at KPMG, commented that the SMMT’s June 2020 new car manufacturing analysis is a harbinger for businesses’ likely descent into insolvency throughout the automotive supply chain. Peter Barnes, head of automotive at global legal business, DWF, added that the challenges facing the UK automotive industry add up to a perfect storm for the sector.
UK car manufacturing output declined -48.2 per cent in June, Society of Motor Manufacturers and Traders figures reveal. Only 56,594 units were produced in the month. The SMMT revealed that the 381,357 cars produced in the first half of 2020 represent the weakest six months of UK manufacturing since 1954. This is -42.8 per cent down on 2019’s first half, with more than 285,000 units fewer produced. 11,349 jobs have been lost across manufacturing and retail during the pandemic. The SMMT warns that the fear of Brexit tariffs could endanger more jobs without dedicated restart support. The society called for greater urgency in talks to secure an ambitious free trade agreement with the European Union. Its latest survey data shows nine in 10 firms are missing clarity of information to allow them to prepare for the end of the transition to the new ongoing relationship between the UK and EU.
Brexit will have significant adverse effects on a UK manufacturing sector highly integrated with the EU single market, and that disruption will have a sizeable negative impact on the wider UK economy, a new report by UK in a Changing Europe finds. Funded by the Economic and Social Science Research Council, part of UK Research and Innovation, the Kings College London based initiative conducts independent research on UK-EU relations.
The last time Tyres & Accessories took a close look at the aftermarket sector back in July 2019, we took the optimistic view that the UK aftermarket space would be able to weather the Brexit storm. Of course, back then Brexit and trans-Atlantic trade wars were the most significant pressures on aftermarket parts segment. Now, however, things are considerably more complex and unpredictable. So, in this analysis we examine the most recent pre-lockdown data as well the latest mid-lockdown information in order to answer the question: is the UK aftermarket still weathering the storm?
In widely reported remarks, Nissan COO Ashwani Gupta has reiterated the importance of UK-EU free trade to the future of its Sunderland manufacturing plant. The uncertainties connected with the Nissan Sunderland plant, in turn, serve as a reminder of the still-present Brexit risks.
A survey among of over 900 decision-makers within UK businesses has found that: 57 per cent of UK private sector organisations are considering expansion into new global markets in the near future as a result of COVID-19. The research, commissioned by One World Express, also found that 45 per cent of businesses say the pandemic has made them realise they are overly reliant on one market. At the same time, 44 per cent are looking to expand into markets outside of the Single Market due to Brexit.
The UK Department for International Trade has announced a new UK Global Tariff (UKGT). Announced on 19 May 2020, this replaces the EU’s Common External Tariff on 1 January 2021 at the end of the Brexit Transition Period. As it pertains to the tyre business, while there are various categories, the announcement basically means the new UKGT sees tyre duty reduced from 4.5% to 4.0%. Camel back rubber for use in retreading stays at 0%, while duties cushion industrial tyres are reduced to 2.0% from 2.5%.
Ahead of the trade negotiations between the UK and EU next month, prime minister Boris Johnson has vowed to walk away from the table if political and legal sovereignty conditions are not met.
Following the news that there will be a new EU tyre label in 2021, the Council of the European Union has announced that it will officially adopt its position relating to the new label on 25 February 2020. In short the new tyre label has been confirmed and will in time be extended to include retreads. At the same time, the rescaling of fuel efficiency and wet grip measures has been halted.
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