Automotive manufacturing falls in UK for ninth month in a row, SMMT knowledge reveals – after worst November for trade since 1980 | Cash Information

Automotive manufacturing falls in UK for ninth month in a row, SMMT knowledge reveals – after worst November for trade since 1980 | Cash Information

UK automobile manufacturing fell once more in November, the ninth month of decline in a row, in accordance with trade knowledge.

A complete of 64,216 vehicles have been produced in UK factories final month, 27,711 fewer than in November final yr – a 30% drop, in accordance with knowledge from the Society of Motor Producers and Merchants (SMMT).

The figures additionally imply it was the worst November for UK automobile manufacturing since 1980, when 62,728 autos have been produced.

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It comes after the federal government launched a overview into its electrical automobile mandate – a system of economic penalties levied in opposition to automobile makers if zero-emission autos make up lower than 22% of all gross sales to encourage electrical automobile (EV) manufacturing.

The mandate will rise to 80% of all gross sales by 2030 and 100% by 2035.

However automobile producers have lengthy expressed unhappiness with the goal, saying the buyer demand shouldn’t be there and EVs are costlier to supply.

Separate figures from the SMMT urged a £5.8bn hit to the sector from the EV mandate.

Regardless of the criticism, EV gross sales objectives have been surpassed final month. One in each 4 new vehicles bought was an electrical automobile.

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Is Europe’s automobile trade in disaster?

The affect of this diminished manufacturing may very well be seen within the final month from the announcement of 800 job cuts from Ford UK and Vauxhall‘s Luton plant closure.

The issues usually are not particular to the UK as European makers additionally face weaker EV demand than anticipated and competitors from Chinese language imports.

Excessive borrowing prices and relatively costlier uncooked supplies have worsened the issue.

Bosch – the world’s largest automobile components provider – additionally reported the lack of 5,500 jobs final month, predominantly in Germany.

In October Volkswagen revealed plans to close no less than three factories in Germany and lay off tens of 1000’s of employees.


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, 2024-12-20 06:11:00

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