U.K. Car Output Falls 16%

Car production in Britain plunged 16% to 116,000 units in May, the Society of Motor Manufacturers and Traders reports.

May’s decline marks the 12th consecutive month of year-on-year shrinkage, according to the trade group (chart). Production through the first five months of the year dropped 21% to 705,800 units.

SMMT says output for export markets fell 13% to 93,900 cars last month. Production for the domestic market dove 26% to 22,200 units. The trade group blames cooling overseas markets and uncertainty about the timing and impact of the U.K.’s exit from the European Union.

Production has been disrupted for months as British carmakers attempted to minimize expected supply chain problems during the scheduled Brexit at the end of March. They built up inventories earlier in the month, then scheduled suspended operations in early April.

When the British government belatedly postponed Brexit until the end of October, it was too late to reverse the planned down time. Now producers face a repeat with a new round of idled operations in four months.