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Automobile Manufacturers Agree to Extend Brexit Process

Mike Hawes, President of the UK Automobile Manufacturers Association, told Reuters on September 6 that the no-deal Brexit option is the biggest threat to the country's automobile industry and that Britain should surely putoff Brexit beyond October 31st.

As will be recalled, Britain had decided to leave the EU after a referendum in 2016. Brexit has been leading the political agenda in the last three years in the UK, which is drifting towards a new election nowadays. 

The automobile industry, which provides the country's highest export returns, is one of the sectors that oppose this formula from the very first day, because of the deep problems that the sector may face in the case of a no-deal Brexit.

In a statement to Reuters, Mike Hawes said that the formula for leaving the Union without an agreement is the worst option for the sector, noting that an agreement with the EU must be reached, albeit at the expense of extending the process for a few more months, in order for the sector to recover with the least harm from the process. Hawes said the uncertainty in question brought investments to a stopping point in the sector and said the most important reason that prevented industrialists from new investments was the no-deal Brexit concern.

According to figures released by the Automobile Manufacturers Association last July, investments in the sector decreased by 70% in the first six months to 111 million dollars.

 

Azerbaijan's Biggest Increase in Passenger Car Production

According to the data of Azerbaijan State Statistics Committee, in the first half of 2019 (6 months), 1,112 passenger cars were produced (assembled) in Azerbaijan. In the said period, an increase of 8.5 times has been achieved compared to the same period of 2018. In 2018, 969 passenger cars were installed in Azerbaijan. At the same time, 747 tractors were produced in the country in the period of January-June 2019, a decrease of 11% compared to the same period of the previous year. In 2018, 1,303 tractors were produced.


Production of new models at Audi Győr 

It was reported that Audi is about to start producing a new model called "Q3 Sportback" in the Győr production complex to be released in Europe in the autumn.

The model is expected to be available with gas or diesel engines, both of which will be produced in Audi Hungaria. The Audi Q3 Sportback, an SUV, is 4.5 meters long, 1.84 meters wide and 1.56 meters high and has a wheelbase of 2.68 meters.

In recent years, the number of cars produced in Győr has been gradually decreasing. Last year, about 100,000 cars left the production line. However, Audi Hungaria with an annual production capacity of 160,000 vehicles, is one of the largest car manufacturers in Hungary, and last summer the factory reached its first milestone by producing its first SUV. The plant produced 15,657 Audi Q3 last year. Audi Hungary models are shipped to more than 90 countries worldwide and the Audi A3 Convertible, the Audi TT Coupé, and the Audi TT Roadster are manufactured entirely in Győr’. 


A New Chinese Investment in Bulgaria 

According to a statement by the Bulgarian Ministry of Economy, Chinese electric bus manufacturer Alfa Bus is interested in investing in Bulgaria. The Chinese investor is investigating the Bulgarian market and intends to build an electric bus assembly and bus battery production facility in the country. The Chinese company is one of the oldest bus manufacturers in China and produced its first electric bus in 2002. The company's electric buses are in a strong position in the markets of many countries, including Spain and Poland.


Korean automotive company chose Hungary for investment

According to Hungarian Foreign and Trade Minister Peter Szijjártó, Bum Chun Precision of South Korea chose Hungary as the location of its first factory abroad.

The new plant, which will be supplying to electric car manufacturers, is expected to create 200 new employment, while the Hungarian Government will support the investment of 13.3 billion forints (about 41.5 million euros) with 2.7 billion forints (about 8.4 million euros). The factory in Salgótarján will produce aluminum battery connectors.
Ri Ki Jeon, President of Bum Chun Precision, explaining why they chose Hungary to produce parts of high-tech products stated that continued development, well-trained workforce and developed industrial infrastructure and appropriate logistics conditions were among what played role in choosing Hungary. 


Regulations Restricting Automobile Purchases in China to be Removed

In order to revive the Chinese economy, which is shrinking due to trade wars, the government is taking measures to encourage consumption. In an official statement issued on August 27th, some existing restrictions on car purchases will be removed.

The statement made by the State Council recommended that local governments gradually remove or loosen the restrictions imposed on automobile purchases, in particular encouraging the sale of renewable energy cars.

The automobile sector, one of the most important elements of industrial growth, has been declining in China for the last thirteen consecutive months due to declining demand, while economic is at the lowest level of the last thirty years.

 

UK Automobile Production Continues to Decrease

In the sectoral data delivered to the Reuters news agency by the UK Automobile Manufacturers Association reported that automobile production in the UK fell by 10.6% in July compared to the previous year. The decline in demand in the EU and Asian markets is attributed to this decline, which has continued over the last fourteen months.

Reasons such as the decrease in diesel car sales in Europe in recent months and the weakening of the Chinese market are also considered as other factors in the decrease in demand for the car.

It was stated that only 108,239 automobiles could be produced in July due to the 14.6% decrease in exports in the UK, where the export-oriented part of production is 80% of total production. On the other hand, according to other data released by the Association, domestic demand increased by 10.2%.

In his statement, President of the Association Mike Hawes emphasized that the automobile sector is heavily dependent on exports and pointed out that the international market contains serious uncertainties in the economy and that the sector has undergone a significant technological change so in order to preserve international competition conditions Brexit must include a deal, he added.