UK auto trade body says investment in industry stalls

Britain’s auto trade body says investment in the industry effectively stopped in the first half of this year amid fears the U.K. will leave the European Union without a transitional deal to protect trade.

The Society of Motor Manufacturers and Traders said Wednesday that companies made just 90 million pounds ($110 million) of new investments in the industry in January-June, compared with an average annual total of 2.7 billion pounds over the previous seven years. Car production dropped 20.1% in the first half.

SMMT Chief Executive Mike Hawes said concern about a no-deal Brexit is causing investors to sit on their hands.

Prime Minister Boris Johnson took office last week promising to leave the 28-nation bloc by Oct. 31 with or without a deal, triggering a drop in the pound.