Automobiles

Despite fears over the imposition of trade tariffs, the UK’s automotive manufacturing sector is booming, according to new data from The Society of Motor Manufacturers and Traders (SMMT). Production increased by 8.5% in 2016, topping 1.7m units, of which c.80% were exported. The growth was largely driven by these exports. Opposing forces are at work here. On the one hand the value of these exports has increased in terms of their sterling value, but the costs of inputs (largely sourced abroad) has also increased. Manufacturing giants, Ford and Jaguar Land Rover, have both emphasized the importance of securing zero-tariff deals to the future of their UK operations.