What's Happening?
The Society of Motor Manufacturers and Traders (SMMT) has reported a significant decline in UK car production for September, with a 27.1% drop compared to previous figures. This decline is largely attributed to a cyber attack that halted production at Jaguar
Land Rover, although other manufacturers in the UK reported growth. The report highlights that nearly half of the cars produced were either battery electric, plug-in hybrid, or hybrid, with these volumes increasing by 14.7% to 24,445 units. Despite this, overall car production for the UK market fell by 34.1%, and exports declined by 24.5%. The SMMT has expressed concerns over the potential end of Employee Car Ownership Schemes (ECOS), warning that such a move could severely impact jobs and the competitiveness of the industry.
Why It's Important?
The potential termination of ECOS could have far-reaching implications for the automotive industry in the UK, affecting approximately 60,000 workers. The SMMT warns that this could reduce the value of employee remuneration and leave many without personal transport, particularly in regions with inadequate public transport. This situation could exacerbate existing challenges in recruiting skilled workers in an industry already facing a skills shortage. The decision to end ECOS could also undermine the UK government's Industrial Strategy, which aims to boost vehicle output to 1.3 million units annually. The SMMT's warning underscores the need for policies that support industry growth and stability.
What's Next?
The SMMT is urging the UK government to reconsider its plans to end ECOS, emphasizing the potential damage to the automotive sector and the broader economy. The upcoming Budget on November 26 will be a critical moment for the industry, as stakeholders await the government's decision. The outcome could influence the future of automotive manufacturing in the UK, affecting both domestic production and export capabilities. Industry leaders and workers alike will be closely monitoring the situation, hoping for a resolution that supports the sector's growth and sustainability.
