UK car production hits 17-year high

British car production hit a 17-year high in February according to the Society of Motor Manufacturers and Traders (SMMT), with year-on-year output up eight per cent, resulting in 153,041 new vehicles being manufactured in the U.K. last month. Year-to-date production (in February) has pushed past 300,000 for the first time since 2002, rising 7.8 per cent to 301,004 units, the SMMT said. The increase in production was driven by a surge in international demand. The 15 per cent fall in the pound against the euro since last year’s Brexit vote has made British vehicle cheaper for buyers in the European Union. Exports were up 13.4 per cent compared to February 2016 to 118,898 vehicles, and accounted for 76.7 per cent of all vehicles produced. The domestic market, however, has cooled, as vehicle production for British customers fell 7.4 per cent year-on-year, a drop of 2,739 units to 34,145. With U.K. Prime Minister Theresa May to trigger Article 50 this Wednesday and formally begin the withdraw of Britain from the E.U., car makers and industry affiliates are concerned that the resulting end of tariff-free trade across the English Channel will have a significant impact on the manufacturing industry. “We must avoid barriers to trade, whether tariff, customs or other regulatory obstacles, at all costs,” said SMMT CEO Mike Hawes. “To do otherwise would damage our competitiveness and threaten the continued success of UK automotive manufacturing.”