LONDON: British car production reached a 17-year high last year, but the country’s vote to leave the European Union contributed to a roughly 33 percent drop in investment in the sector, a car industry body said.
Carmakers had lobbied hard against Brexit, saying that it could result in the imposition of export tariffs that would make UK plants uncompetitive.
Britain built 1.72 million vehicles in 2016, the Society of Motor Manufacturers and Traders (SMMT) said, adding that the annual increase of 8.5 percent lifted output to its highest since 1999 and the third-highest since the 1970s.
However, the SMMT said that investment in the sector, which tends to make decisions about future production two to three years before a model rolls off the production line, fell by a third to 1.66 billion pounds ($2.1 billion).
“We do see companies at least delaying decisions until there is greater certainty,” said SMMT Chief Executive Mike Hawes.
Among the British car industry’s concerns is the requirement of many free-trade deals between countries and blocs for more than 50 percent of components in a car to be made locally. Britain currently averages 41 percent.
If Britain fails to secure a preferential deal with the European Union during the two-year divorce talks due to begin by the end of March, cars made in Britain could become subject to a 10 percent World Trade Organization tariff on exports.
“It would be very hard to overcome that level of additional cost, given that plants operate on wafer-thin margins,” Hawes said, adding that carmakers generally make only a 2-4 percent return on investment.
“We want trade deals, but they must be the right deals, not rushed deals. Failure to do so could damage UK automotive manufacturing beyond repair.”
Prime Minister Theresa May said last week Britain would leave the EU single market, which guarantees unfettered trade on the continent, but suggested that the car industry may be able to retain elements of free trade under a bespoke Brexit deal.
Japanese carmaker Nissan said in October that it would build two new models at its Sunderland plant in North East England.
A source said that the decision had been made after a government pledge for extra support to counter any loss of competitiveness caused by Britain leaving the EU, though a spokesman for the Prime Minister said that no explicit promises had been made on compensation for tariffs.
UK car output hits 17-year high but investment tumbles
UK car output hits 17-year high but investment tumbles
Major airlines suspend, reroute flights amid US-Israel strikes on Iran
- Saudia says decision taken in line with aviation safety and security standards
- Emirates said it temporarily suspended it's operations out of Dubai
RIYADH: Major international airlines across the Middle East and South Asia have suspended, canceled or rerouted flights following ongoing US-Israel attacks on Iran and the resulting airspace closures, according to official statements issued via X.
Saudia said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The airline said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
بيان رسمي من #الخطوط_السعودية pic.twitter.com/CHfjKj9yLX
— Saudia Group | مجموعة السعودية (@SaudiaGroup) February 28, 2026
Air Arabia said its flights were experiencing cancellations, delays or rerouting as a result of the evolving situation and airspace closures.
The airline advised passengers to check the status of their flights before traveling to the airport by visiting its website or contacting its call center.
Customers booked on affected flights will be notified directly, the airline said, adding that further updates would be provided as the situation develops.
Air India announced a broader suspension, stating that “in view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended.”
The airline said it remains committed to maintaining the highest standards of safety for passengers and crew and will continue to assess the safety and security environment for flight operations, adjusting services proactively as required.
Air India said its teams would extend necessary support to passengers and advised customers to check flight status online or contact its 24/7 call center for assistance.
#TravelAdvisory
— Air India (@airindia) February 28, 2026
In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended. We remain committed to maintaining the highest standards of safety for our passengers and crew. We will continue to…
All flight operations at Dubai International and Dubai World Central – Al Maktoum International are suspended until further notice, according to a post by Dubai Media Office on X.
Dubai-based Emirates reported that regional airspace closures had caused disruption to several of its flights and that the airline had temporarily suspended its operations from its hub Dubai.
The airline said it is actively monitoring the situation, engaging with relevant authorities and adjusting operations in line with the latest developments.
The carrier apologized to affected customers and said it is assisting them with rebooking, refunds or alternative travel arrangements, reiterating that the safety and security of passengers and crew remain its highest priority.
Due to multiple regional airspace closures, Emirates has temporarily suspended operations to and from Dubai.
— Emirates Support (@EmiratesSupport) February 28, 2026
Emirates urges customers to check https://t.co/Ucm3UswfVh and https://t.co/yehFUeWZQq for the latest updates before proceeding to the airport.
We are actively monitoring… pic.twitter.com/SLDC7iNaUN
Qatar Airways confirmed a temporary suspension of flights to and from Doha due to the closure of Qatari airspace.
The airline said it is working closely with government stakeholders and relevant authorities to support impacted passengers and will resume operations once the airspace reopens.
It warned that delays are anticipated when usual operations resume and said additional ground staff have been deployed at Hamad International Airport and other key airports to assist passengers.
Temporary Suspension of Qatar Airways Flights due to Qatari Airspace Closure
— Qatar Airways (@qatarairways) February 28, 2026
Qatar Airways Group confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.
The airline is working closely with government stakeholders and the…
Meanwhile, Al Jazeera reported that British Airways had canceled flights to Tel Aviv and Bahrain, adding to the list of carriers adjusting operations.
Across their statements, airlines consistently cited airspace closures and safety considerations as the primary reasons for suspensions and disruptions, while urging passengers to monitor official channels for updates as the situation continues to evolve.
