Latest news with #carproduction
Yahoo
24-07-2025
- Automotive
- Yahoo
UK vehicle production declines in H1 2025
New vehicle manufacturing in the UK saw a decrease of 11.9% in the first half of 2025, with total production reaching 417,232 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). A slight recovery was noted in June, where car production increased by 6.6%, although this was compared to a period last year that faced challenges such as model changeovers and supply chain disruptions. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service Overall, car output for the year to date has fallen by 7.3%, with 385,810 cars produced. The commercial vehicle sector experienced a more severe decline, with production dropping by 45.4% to 31,422 units due to restructuring efforts at manufacturing plants. In contrast, the production of electrified vehicles saw a modest rise of 1.8%, resulting in 160,107 units produced, which accounted for 41.5% of total output in the first half of the year. The UK automotive industry remains focused on exports, with 76.9% of production intended for international markets, the report said. The European Union is the largest destination for UK car exports, making up 54.4% of the total, followed by the US at 15.9%, China at 7.5%, Turkey at 4.1%, and Japan at 2.7%. These five markets together represent over 80% of the UK's overseas sales. Despite a decline in export volumes over the past three months, culminating in an 18.7% drop in June, the US continues to be the largest single export market for UK vehicles, highlighting the significance of the recent UK-US trade agreement, which provides reduced tariffs for UK automotive exports. Looking forward, the global economic environment remains uncertain, with projections indicating a 15% decrease in total vehicle output to 755,000 units for 2025. However, a potential recovery is anticipated in 2026, with a forecasted increase of 6.4% bringing production to 803,000 units. The report suggests that the swift implementation of the new industrial strategy could enhance the UK's competitiveness in the automotive sector, potentially restoring its position among the top 15 global auto manufacturing locations and contributing an estimated £50bn to the economy. Additionally, the government's automotive sector strategy, DRIVE35, outlines initiatives aimed at supporting the industry's economic and environmental objectives. The introduction of the Electric Car Grant, which allocates £650m for electric vehicle incentives, may also stimulate the domestic market and improve the UK's attractiveness for industrial investment. SMMT chief executive Mike Hawes said: 'Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. 'However, there are foundations for a return to growth. The industry is moving to the technologies that will be the future of mobility. Our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. "With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.' "UK vehicle production declines in H1 2025" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-07-2025
- Automotive
- Yahoo
UK vehicle making hits lowest level since 1953
British car and van production in the first half of this year has hit its lowest level since 1953, excluding the industry shutdown during Covid. Car output fell 7.3% in the six months to June while the closure of Vauhall's Luton van plant helped drive van production down 45%, data from the Society of Motor Manufacturers and Traders (SMMT) shows. Uncertainty over tariffs in the US – the UK industry's second biggest market – meant some firms slowed or stopped production in the first half of this year. SMMT said the US-UK tariff deal which has since come into effect could help confidence, while the government said its electric vehicle (EV) grants would "boost" the industry. The SMMT welcomed the EV grants, but it said the new system lacked clarity and had been introduced without consulting the industry. Mike Hawes, SMMT chief executive, said the half year production figures were "depressing" but that he hoped that the first half of this year marked "the nadir" for the UK auto industry. A deal with the US to reduce tariffs from 27.5% to 10% was announced in May came into effect on 30 June, with SMMT recording a small rise in vehicle production in June. What is in the UK-US tariff deal? Car maker Stellantis says US tariffs have cost it €300m However, the SMMT does not expect to return to 2021 production levels of one million vehicles by the end of the decade. Mr Hawes said that the government's target of 1.3 million vehicles per year by 2035 was "quite some ambition from where we are", adding that "we clearly require at least one, if not two, new entrants to come into UK production" to hit the target. Production of electrified vehicles rose 1.8% with battery, hybrid, and plug-in hybrid vehicles accounting for a record of more than two in five of vehicles produced. Last week the government confirmed it will reintroduce grants of up to £3,750 on some EVs are priced at or below £37,000. While the SMMT welcomed the return of incentives that were abolished in 2022, there is widespread confusion about which vehicles will qualify for the discounts. The eligibility and level of discount will be determined by the amount of carbon emitted in the production of the vehicle and its battery. They will only be offered to manufacturers that have verified science-based targets with thresholds the government has not yet defined. It's expected that Chinese and Korean vehicles will not meet the criteria but little else is clear. "The difficulty is, we don't know. Nobody knows, but nobody, not even government, really knows yet, which models and which brands will qualify," said Mr Hawes. "I think the industry is still trying to get clarity behind its application. Right now your dealer cannot tell you whether the model you are considering is eligible." He said clarity was needed soon as September is the second biggest month for new car registrations. A transport department spokesperson said it expects "dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds". "We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible," they added. The £650m of grant money will be awarded on a first come first served basis.
BBC News
24-07-2025
- Automotive
- BBC News
UK vehicle making hits lowest level since 1953, excluding Covid
British car and van production in the first half of this year has hit its lowest level since 1953, excluding the industry shutdown during output fell 7.3% in the six months to June while the closure of Vauhall's Luton van plant helped drive van production down 45%, data from the Society of Motor Manufacturers and Traders (SMMT) over tariffs in the US – the UK industry's second biggest market – meant some firms slowed or stopped production in the first half of this said the US-UK tariff deal which has since come into effect could help confidence, while the government said its electric vehicle (EV) grants would "boost" the industry. The SMMT welcomed the EV grants, but it said the new system lacked clarity and had been introduced without consulting the Hawes, SMMT chief executive, said the half year production figures were "depressing" but that he hoped that the first half of this year marked "the nadir" for the UK auto industry.A deal with the US to reduce tariffs from 27.5% to 10% was announced in May came into effect on 30 June, with SMMT recording a small rise in vehicle production in June. However, the SMMT does not expect to return to 2021 production levels of one million vehicles by the end of the Hawes said that the government's target of 1.3 million vehicles per year by 2035 was "quite some ambition from where we are", adding that "we clearly require at least one, if not two, new entrants to come into UK production" to hit the of electrified vehicles rose 1.8% with battery, hybrid, and plug-in hybrid vehicles accounting for a record of more than two in five of vehicles week the government confirmed it will reintroduce grants of up to £3,750 on some EVs are priced at or below £37, the SMMT welcomed the return of incentives that were abolished in 2022, there is widespread confusion about which vehicles will qualify for the eligibility and level of discount will be determined by the amount of carbon emitted in the production of the vehicle and its battery. They will only be offered to manufacturers that have verified science-based targets with thresholds the government has not yet expected that Chinese and Korean vehicles will not meet the criteria but little else is clear."The difficulty is, we don't know. Nobody knows, but nobody, not even government, really knows yet, which models and which brands will qualify," said Mr Hawes."I think the industry is still trying to get clarity behind its application. Right now your dealer cannot tell you whether the model you are considering is eligible."He said clarity was needed soon as September is the second biggest month for new car registrations.A transport department spokesperson said it expects "dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds"."We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible," they £650m of grant money will be awarded on a first come first served basis.
Telegraph
19-07-2025
- Automotive
- Telegraph
UK's rarest cars: 2003 Kia Magentis V6, one of only six left
When you consider that in 2003 Rover was still making cars at Longbridge, the early years of this century already seem impossibly remote. Meanwhile, turn-of-the-century drivers with an eye for a bargain could buy a new Kia Magentis for far less than the price of a similarly sized Ford or Vauxhall. Today, Ken German's 2.5 SE V6 is one of only six remaining on the road in the UK. Kia (actually Kyungsung Precision Industry) of South Korea built its first car in 1974. The 1.0-litre Brisa was a version of the Mazda Familia made under licence; the company also made small numbers of the Fiat 132 and the Peugeot 604 for senior bureaucrats. Following the 1980 military coup, the new government permitted Kia to build only commercial vehicles. Car production would not resume until 1986. By then, the South Korean motor industry was undergoing a vast expansion. In 1974, the nation produced only 9,069 vehicles. However, Autocar noted that 12 years later, 'more than 450,000 rolled off the production line. By the end of the decade, it will outstrip Britain as a car producer'. In 1982, the Hyundai Pony became the first South Korean car sold in the UK and Kia imports began in June 1991 with the Pride, which was based on the 1987 Mazda 121 supermini. Hyundai took a majority share in Kia in 1998; the Kia K5 of 2000, essentially a re-badged Hyundai Sonata, was the first product of the new regime. UK sales began in 2001 using the Magentis name, which the concessionaire initially imported only in 2.5-litre V6 form. When Sue Baker tested the new Kia for this paper, she found it agreeable company but 'less of a driver's car than some of its asserted rivals'. Her conclusion was that the Magentis offered 'a lot of car (and chrome) for the money'. At £12,995, the Magentis LX was the cheapest V6-powered car in the UK – £6,100 less than a Ford Mondeo 2.5 Zetec S. The top-of-the-range SE Sport H-Matic was £15,995 when a Vectra 2.6i V6 CD cost £19,145. Autocar thought 'Kia's new Magentis showed it can build a car which is both good value and good to drive'. They also described the V6 engine as 'a corker' although the handling was 'more grand-boulevardier than 'gran-turismo'. The Magentis may have possessed a 'non-existent image' compared with some European rivals but was far better equipped, with a 'much nicer engine and gearbox' than the market-leading Mondeo. The second-generation version replaced the original model in 2005. This earlier example's owner German first heard of the Magentis in 2013 when he needed a 'cheap runaround' and acquired a nine-year-old 2.0-litre LX. Six years later, he sought another vehicle to augment his Jaguar Mk2 over the winter months and came by a Magentis 2.5 SE V6.
Irish Times
15-07-2025
- Automotive
- Irish Times
Nissan to end production at one of Japan's first large-scale car plants
Nissan unveiled plans to end production after almost seven decades at the first car plant in Japan to use robots, just days before a crunch election in the world's fourth-largest economy. The Japanese carmaker said on Tuesday that it would close the Oppama factory if it failed to find a buyer by the time production ceases in March 2028, marking the end of an era for one of Japan's most renowned car plants that has produced almost 18mn vehicles. 'We understand this is a very, very painful thing to go through,' said Nissan's new chief executive Ivan Espinosa, who is trying to turn around the struggling automaker. The plant 'helped shape Nissan's identity and has created numerous vehicles cherished by customers around the world', he added. The announcement comes as part of Espinosa's sweeping restructuring plan to cut 20,000 jobs and rationalise its global production network down from 17 to 10 plants. READ MORE The decision comes at a sensitive time for Japanese prime minister Shigeru Ishiba as the nation goes to the polls on Sunday in an upper house election viewed as pivotal to determining his survival. The plant is located in Kanagawa, a key prefecture for heavyweight politicians in Japan such as former prime minister Yoshihide Suga and agriculture minister Shinjiro Koizumi, whose seat is near the plant. [ The secrets behind the new Nissan Leaf's style: 'Hopefully it's a pleasant shock' Opens in new window ] Mr Koizumi met with Mr Espinosa soon after the restructuring plan was announced in May and publicly criticised the company for stoking worries among employees because of a lack of details around factory closures. The closure of a large-scale car plant in Japan marks the latest transfer of power in the global automotive industry from once dominant Japanese companies to ascendant Chinese electric vehicles (EV) rivals. The Juggle: the issues facing women with young children when balancing childcare and their careers Listen | 44:30 The Oppama factory employs 2,400 people but has suffered from woeful utilisation rates at around 40 per cent. By consolidating production in Nissan's Kyushu plant, Mr Espinosa aims to get operating rates up to 100 per cent and save 15 per cent of costs across its Japan operations. Opened in the early 1960s, Oppama helped power Nissan's rise to a global automotive powerhouse in the postwar period as one of Japan's first large-scale production sites and the first auto plant in the country to use welding robots in 1970. Local media reports said that iPhone supplier Foxconn was in talks with Nissan over Oppama but Mr Espinosa denied that there were active discussions about a joint venture or contract manufacturing arrangement for the plant. 'We are considering a sale of the assets or a repurposing of the land,' Espinosa said. Oppama is the third plant affected by Nissan's restructuring plans, with the car group halting production in Argentina and handing its India operations over to alliance partner Renault. – Copyright The Financial Times Limited 2025
