LONDON: U.K. engine production fell 14.5% in April to 198,090 units, but the year-to-date build remained up 4.7% at 942,238. The Society of Motor Manufacturers and Traders says the April result was impacted by the Easter break. Production for the domestic market fell 12.2% for the month to 86,995 units for a 4-month total up 3.6% at 402,288. Export orders dropped 16.2% in April to 111,095 units but remained up 5.6% year-to-date with the 539,590 engines accounting for 57.3% of the U.K. build. The strong export shipments have SMMT warning against barriers to trade with mainland Europe. SMMT CEO Mike Hawes says U.K. engine plants are deeply integrated within the European supply chain, where parts cross borders many times before a vehicle is finished.
“Like the wider industry, to guarantee future growth we need the next government to safeguard the conditions that have made us globally competitive, keeping us open and trading and delivering an ambitious industrial strategy for our sector,” Hawes says in a statement. SMMT says the introduction of tariffs on trade with the EU after Brexit would significantly increase costs and undermine competitiveness. “An appropriate solution that retains the benefits of the single market and tariff and customs-free arrangements for the highly integrated automotive sector should be secured,” it says. “Government must ensure that no non-tariff barriers to trade with the EU are created by committing to ongoing harmonization of the U.K. and the EU’s automotive product regulations.” The industry group wants the U.K. government to ensure existing European standards issued in the U.K. remain valid following the region’s withdrawal from the EU.“Harmonization with EU product regulation will not only facilitate access to the EU’s markets but markets across the world, many of which adopt EU regulations,” SMMT says. “It is critical to the success of the automotive sector that the closest possible long-term relationship with the EU on regulatory, R&D, trade and customs matters is maintained.”
