Car production falls in UK for ninth month in a row, SMMT data shows – after worst November for industry since 1980
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UK car manufacturing fell again in November, the ninth month of decline in a row, according to industry data.
A total of 64,216 cars were produced in UK factories last month, 27,711 fewer than in November last year – a 30% drop, according to data from the Society of Motor Manufacturers and Traders (SMMT).
The figures also mean it was the worst November for UK car production since 1980, when 62,728 vehicles were produced.
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It comes after the government launched a review into its electric car mandate – a system of financial penalties levied against car makers if zero-emission vehicles make up less than 22% of all sales to encourage electric vehicle (EV) production.
The mandate will rise to 80% of all sales by 2030 and 100% by 2035.
But car manufacturers have long expressed unhappiness with the target, saying the consumer demand is not there and EVs are costlier to produce.
Separate figures from the SMMT suggested a £5.8bn hit to the sector from the EV mandate.
Despite the criticism, EV sales goals were surpassed last month. One in every four new cars sold was an electric vehicle.
The impact of this reduced production could be visible in the last month from the announcement of 800 job cuts from Ford UK and Vauxhall‘s Luton plant closure.
The problems are not specific to the UK as European makers also face weaker EV demand than anticipated and competition from Chinese imports.
High borrowing costs and comparatively more expensive raw materials have worsened the problem.
Bosch – the world’s biggest car parts supplier – also reported the loss of 5,500 jobs last month, predominantly in Germany.
In October Volkswagen revealed plans to shut at least three factories in Germany and lay off tens of thousands of staff.
