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Car production in the UK fell for the eighth month in a row. As manufacturers grapple with public reluctance to buy electric cars.
The grim figures come as automakers warn of the future. Vauxhall’s owner said further factory closures could follow the closure of its Luton plant due to fines for producing too many petrol and diesel cars.
Britain produced 15 percent fewer cars. According to the Society of Motor Manufacturers and Traders (SMMT), 77,484 vehicles rolled off production lines in October compared to a year earlier.
Mike Hawes, chief executive of SMMT, said: “These are very worrying times for the vehicle industry, with massive investment in plants and new zero-emission products under intense pressure.”
Britain exports most of the cars it makes, Nissan plants supply Europe, and Britain’s luxury output from Bentley and Rolls-Royce is shipped around the world.
Mr Hawes added: “The slowdown in the global market – particularly for electric vehicles (EVs) – is affecting production, the situation in the UK is particularly dire, as we have the toughest targets and has the fastest timeline but without the necessary concessions to customers. Drive demand.”
The industry is lobbying for weaker rules on EV production. Currently, automakers are expected to make 22 percent of their cars electric.
The government has hinted that it may give carmakers more time. To hit targets. Automakers say the 22 percent target is double the rate at which consumers would buy vehicles if they were priced profitably.
Most cars in the UK are made at plants owned by Nissan, Jaguar Land Rover, Toyota and Mini. But Lotus, Rolls-Royce, Bentley and Aston Martin also own smaller-volume but higher-end plants. Together, the industry employs 198,000 people, in addition to many suppliers.
October’s decline had the biggest impact on export orders, which fell 17.6 percent, while domestically bound units fell 4.7 percent.
Part of the reduction is due to production lines being halted to convert to making electric cars.
Carmakers have plans to invest £20bn to build EVs.
While models destined for the EU fell by about a third, models exported to the US almost doubled as those aimed at US buyers. Beat incoming President Donald Trump’s expected tariffs on imports..
Overall, 32% of cars built in the UK were either battery-powered, hybrid or plug-in hybrid.
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