UK car exports have slumped by one-fifth and production has fallen for an eighth successive month, prompting industry figures to warn of a “clear and present danger” from a no-deal Brexit.

The number of cars leaving UK factories slumped 18.2 per cent to 120,600 in January compared to the same month a year ago, the industry’s trade body said.

The decline was driven by a 21.4 per cent decline in exports, which account for most of production. Output destined for the EU was down by one-fifth while car exports to China collapsed 72 per cent, the latest figures from the Society of Motor Manufacturers and Traders (SMMT) showed. Manufacturing for the UK market fell by a more modest 4.8 per cent.

It comes after Honda announced it would shut its Swindon factory in 2021 with 3,500 jobs to go. Nissan, Jaguar Land Rover and Ford have all laid out plans to cut jobs or shift production overseas in recent months, citing a variety of reasons from Brexit to falling demand for diesel cars.

Car manufacturers cutting UK jobs Show all 5 1 /5 Car manufacturers cutting UK jobs Car manufacturers cutting UK jobs Jaguar Land Rover Britain's largest automotive manufacturer announced in January that it plans to cut 4500 jobs from its 40,000 workforce Getty Car manufacturers cutting UK jobs Nissan The Japanese car company announced early in February that it would no longer be making the new X-trail model at its Sunderland factory Getty Car manufacturers cutting UK jobs Honda Honda has announced that it is planning to close its Swindon plant with the loss of 3,500 jobs PA Car manufacturers cutting UK jobs Michelin Michelin announced in November that it will close its Dundee tyre factory which employs over 800 people by 2020 PA Car manufacturers cutting UK jobs Schaeffler Shchaeffler's Llanelli plant is to close by the end of 2019. The company provides automotive and and industrial parts worldwide and the Llanelli plant employs over 200 people. Juergen Ziegler, chief executive for Europe, said that while Brexit was not the only factor, it has "brought forward" the decision to relocate Google

“Another month of decline is a serious concern,” said Mike Hawes, SMMT chief executive. “The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology.

“But, the clear and present danger remains the threat of a no-deal Brexit, which is monopolising time and resources, undermining competitiveness.

“Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs. No-deal must be taken off the table immediately and permanently.”

Almost one-third of automotive companies responding to a recent SMMT survey said they had postponed or cancelled UK investment decisions because of Brexit, with one in five having already lost business as a direct consequence.

Around one in eight were relocating operations overseas and the same proportion cutting jobs.

Rebecca Long-Bailey, shadow business secretary, said the figures highlighted the uncertainty caused the Theresa May’s “shambolic” Brexit negotiations.

“The government must end this chaos and back Labour’s credible alternative plan, including a comprehensive customs union, before it is too late for car manufacturing, the companies in its supply chain and all those who work in it,” Ms Long-Bailey said.

Stuart Apperley, director and head of UK automotive at Lloyds Bank said there were some positives for the car industry, despite the poor production figures.

“While it’s easy to be downbeat, it’s important to remember it isn’t all doom and gloom and the sector has proven resilient in the past.

“Indeed out of the gloom of 2008, the UK’s automotive sector emerged with some real winners to be found.”

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