British car production has slowed, industry figures show, the latest sign of a struggling sector.
For the eighth month in a row, UK car manufacturing has fallen, according to data from the Society of Motor Manufacturers and Traders (SMMT).
In October, 15.3% fewer cars rolled off factory lines compared to the same month last year, meaning 14,037 fewer cars were manufactured last month compared to October 2023.
The impact of this reduced production could be visible last week upon the announcement of 800 job cuts at Ford United Kingdom and VauxhallIt is Closure of the Luton factory.
Part of the blame for the closure has been attributed to government targets for electric car sales by Stellantis, Vauxhall’s parent company.
Pressure has been put on British car manufacturers to meet the government’s requirements. electric car mandate.
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Under the mandate, financial penalties are currently imposed on manufacturers if zero-emission vehicles account for less than 22% of all sales. This will reach 80% of all sales by 2030 and 100% by 2035.
But sales have did not meet the objectives and are lower than the forecasts made when the 2030 target was defined. Instead of the expected 22% of sales of fully electric cars, only 18.7% of cars are currently.
Following complaints from the industry, facing £1.8 billion in fines for missing targets and £4 billion in cuts to make electric vehicles (EVs) more attractive, which end in April next year, as well as long-standing calls for more support, a revision of the mandate was announced.
Today’s figures show that UK and export production has fallen, with the biggest fall (17.6%) being in vehicles leaving the country.
The vast majority of vehicles (80%) are shipped abroad, half of which are to Europe.
Carmakers’ problems are not unique to the UK, as European manufacturers also face weaker-than-expected demand for electric vehicles and competition from Chinese imports.
High borrowing costs and more expensive commodities have compounded the problem.
On Friday, Bosch – the world’s largest supplier of auto parts – reported the loss of 5,500 jobsmainly in Germany.
Less than a month ago Volkswagen revealed its plans close at least three factories in Germany and lay off tens of thousands of employees.