New-Car Production in U.K. Shrinks Again

New-vehicle output by the British auto industry continues to dwindle, falling 11% to 108,200 units last month, says the Society of Motor Manufacturers and Traders.

Production has now declined year-on-year for 14 consecutive months. Britain exports more than 80% of the cars it makes, but such shipments plunged 15% in July.

SMMT blames the slide on dwindling demand for exports to China and Europe, the disruption of model changeovers and slumping sales of diesels.

The group warns that a trade deal with Europe ahead of the U.K.’s exit from the European Union at the end of October has never been more important to the industry’s future. But doubtful analysts say a no-deal Brexit appears more likely.