Latest news with #UKmanufacturing
Daily Mail
5 days ago
- Automotive
- Daily Mail
Car factories in the UK record lowest output in over 70 years
Car production took a hefty hit last month hitting a 70-year low. Just 59,203 vehicles were made in April as car and commercial vehicle production fell by 15 per cent, the latest figures from the Society of Motor Manufacturers and Traders (SMMT) show. The number of cars rolling off UK assembly lines dropped by 8.6 per cent, while the output of vans and commercial vehicles slumped by a massive 68.8 per cent, marking the lowest April since 1952 - the year Elizabeth II became Queen. The SMMT is hoping that new trade deals with the EU, US and India will provide opportunities for future growth, but chief executive Mike Hawes is pushing for 'additional investment' such as the reported £41million Toyota will spend building its GR Corolla hot hatch in Derbyshire. April's slump of 16 per cent compared to the same month last year, and the 25 per cent drop on March when numbers were helped by an increase in shipments to the US before Trump's tariffs took effect, cap off the sector's lowest start to a year since 2009. Critically, car export production fell by 10.1 per cent, caused by falls in demand to Britain's best markets, the EU and US. Exports to the EU fell 19.1 per cent, while US exports fell by 2.7 per cent, although the EU still took more than half of all exports while the US received 16.5 per cent. Conversely, exports to China and Turkey rose by 44 per cent and 31.2 per cent respectively. There were fewer production days in the month due to Easter falling between 18 and 20 of the month, which reduced April's output compared to the rise in output in March, the SMMT said. Amid economic uncertainty and rapidly changing global trading conditions, the SMMT has stressed the need for the government's eagerly awaited industrial strategy to 'contain measures that boost the competitiveness of Britain's most valuable export sector'. April 1952 was the last time motor outputs were that low - that year, 53,517 vehicles were produced. Mike Hawes, SMMT chief executive, said: 'With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness. 'To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy.' However, industry sources have reason to be optimistic with some new investment in UK car manufacturing announced recently. This is Money reported yesterday that Toyota is looking to invest £41million building the GR Corolla hot hatch at its Burnaston plant in Derbyshire to capatilise on the sizeable market in the US and reduce wait times to its North American customers. It's also a sign of Britain's attractiveness to firms as the UK-US trade deal – the US has reduced tariffs from 25 per cent to 10 per cent for up to 100,000 UK-made cars per year - makes the UK a desirable place to set up factories and 'act as a bridge between the US and EU'. Struggling car maker Nissan recently confirmed that its new Leaf and Juke EVs will be built at its Sunderland plant before the end of next year, a positive sign for the future of the UK's biggest car factory which employs around 6,000 people. The Government followed with an announced that it will give a £1billion loan to Nissan to secure jobs as the Japanese manufacturer embarks on a £1.3bn cost-saving plan which will see seven plants close globally and 20,000 jobs culled.
Yahoo
6 days ago
- Automotive
- Yahoo
UK vehicle manufacturing plummets to lowest since 1952 in April
Car and van manufacturing in the UK slumped to its lowest level in more than 70 years last month. Latest figures from the Society for Motor Manufacturers and Traders (SMMT) showed the number of cars made in Britain fell by 8.6% in April while production of vans and other commercial vehicles was down by 68.6%. Overall UK car and commercial vehicle production fell by 15.8% to 59,203 units in April. Excluding the first covid lockdown in 2020 when virtually all manufacturing ceased, that is the the lowest output total for the month since April 1952, when the late Queen Elizabeth II had just ascended the throne and the Morris Minor was the best selling car in the UK. While output was limited by the timing of Easter, model changeovers and temporary plant closures the figures will nonetheless sound alarm bells. The SMMT said 'urgent action' is required to reboot one of the country's most important manufacturing and exporting sectors. The first four months of the year have been the slowest for production since the 2009 recession caused by the global financial crisis. Car exports declined 10.1% during a month of intense international trading volatility, while commercial vehicle exports fell 75.8%. Shipments to the UK's two largest global markets, the EU and US, fell by 19.1% and 2.7% respectively, although the EU still took more than half of all exports while the US received 16.5%. But exports to China and Turkey rose by 44.0% and 31.2% respectively. Commercial vehicle export volumes, meanwhile, fell sharply by 75.8%. The decline was driven by a 78.9% drop in shipments to the EU, but the bloc retained the lion's share of exports at 84.9%. Mike Hawes, SMMT Chief Executive, said, 'With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness. 'Government has recognised automotive manufacturing's critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month. 'To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK.' Sign in to access your portfolio
Yahoo
6 days ago
- Automotive
- Yahoo
UK vehicle manufacturing plummets to lowest since 1952 in April
Car and van manufacturing in the UK slumped to its lowest level in more than 70 years last month. Latest figures from the Society for Motor Manufacturers and Traders (SMMT) showed the number of cars made in Britain fell by 8.6% in April while production of vans and other commercial vehicles was down by 68.6%. Overall UK car and commercial vehicle production fell by 15.8% to 59,203 units in April. Excluding the first covid lockdown in 2020 when virtually all manufacturing ceased, that is the the lowest output total for the month since April 1952, when the late Queen Elizabeth II had just ascended the throne and the Morris Minor was the best selling car in the UK. While output was limited by the timing of Easter, model changeovers and temporary plant closures the figures will nonetheless sound alarm bells. The SMMT said 'urgent action' is required to reboot one of the country's most important manufacturing and exporting sectors. The first four months of the year have been the slowest for production since the 2009 recession caused by the global financial crisis. Car exports declined 10.1% during a month of intense international trading volatility, while commercial vehicle exports fell 75.8%. Shipments to the UK's two largest global markets, the EU and US, fell by 19.1% and 2.7% respectively, although the EU still took more than half of all exports while the US received 16.5%. But exports to China and Turkey rose by 44.0% and 31.2% respectively. Commercial vehicle export volumes, meanwhile, fell sharply by 75.8%. The decline was driven by a 78.9% drop in shipments to the EU, but the bloc retained the lion's share of exports at 84.9%. Mike Hawes, SMMT Chief Executive, said, 'With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness. 'Government has recognised automotive manufacturing's critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month. 'To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK.'
Yahoo
08-05-2025
- Automotive
- Yahoo
UK manufacturers to cut jobs ‘within weeks unless ministers can strike trade deal'
Britain's manufacturers will start cutting jobs 'within weeks' unless the government can strike a deal to safeguard the UK economy from Donald Trump's trade war, industry leaders have told MPs. Senior executives from the UK's automotive, manufacturing and energy sectors warned a committee of MPs to expect job losses this summer if the US moves ahead with a swathe of global trade tariffs set out by Trump earlier this month. The stark warning has emerged as the chancellor, Rachel Reeves, travels to the US to hold her first in-person meeting with her American counterpart, Scott Bessent, about striking a new trade agreement to soften the blow of Trump's looming trade war. Otherwise, the UK government may need to put in place a Covid-style furlough scheme to cover the wages of those likely to lose their jobs this summer, the industry figures said. Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), said Trump's moves to upend the global economy were likely to have a 'severe, significant and immediate' impact on high-end UK carmakers which serve the US market. He said that lay-offs for carmakers including Rolls-Royce, Bentley, Aston Martin and McLaren would be a last resort to avoid losing 'highly talented people' but that would be 'a question of weeks rather than months' before job losses begin. 'The impact is now, which is why we need to make sure either we get a deal very quickly or there is a mechanism to support the industry in the coming weeks and months,' he said. Hawes urged ministers to 'look again' at the government furlough scheme, which was used to support workers hard-hit by the impact of the Covid pandemic 'as a temporary measure'. The warnings were echoed by Stephen Phipson, the chief executive of Make UK, a trade group for manufacturers, who said that companies could start laying off staff by the summer if the UK cannot secure a deal with the US to soften its tariffs of 10% on all goods as well as 25% tariffs on steel, aluminium and cars. The US trade tariffs put in place less than three weeks ago has prompted some manufacturers to cut agency workers and temporary roles, according to Steve Turner, the assistant general secretary of the union Unite. The looming impact of the trade tariffs threatens to compound the challenges facing UK manufacturers, which face some of the highest energy costs in the world due to the UK's heavy reliance on gas. Alan Johnson, a senior executive at Nissan, told the MPs that the carmaker's Sunderland factory is one of its most efficient but 'pays more for its electricity than any other Nissan plant in the world'. He said the UK was 'not a competitive place to be building cars today'. The executives called on ministers to follow through on its plan to put forward its modern industrial strategy alongside plans to drive down energy costs.
