Both payment delays and insolvencies are expected to increase in the coming months as decreasing investments and lower production will impact suppliers.
- 2018 sales negatively affected by Brexit uncertainty
- Increasing insolvencies expected in 2018
- Payments take 60 days on average
According to the International Organization of Motor Vehicle Manufacturers OICA, in 2017 UK automotive sector output decreased 3.7% to 1.75 million vehicles produced. Reduced demand for diesel engines due to uncertainty about regulation and taxation surrounding the government’s plan to cut CO2 emission targets led some car manufacturers to cut production. According to the European Automotive Manufacturers Organisation, ACEA, in 2017 new passenger car registrations increased 3.4%, while commercial vehicle registrations fell 4.4%. Domestic new car registration decreased 6% in H1 of 2018 according to the Society of Motor Manufacturers and Traders (SMMT), due to ongoing uncertainty about Brexit and the government´s plans for emission reduction. That said, exports continued to sustain automotive production growth, helped by a weaker pound. Exports account for around 80% of production, with the EU being the biggest export market, accounting for 54% of exports in 2017.
Read the full report here: Market Monitor Automotive United Kingdom 2018