What's Happening?
The Society of Motor Manufacturers and Traders (SMMT) reports a 27.1% decline in UK car production for September, attributed to a cyber attack that halted production at Jaguar Land Rover. Despite growth in other manufacturers, overall car production for the UK market
fell by 34.1%, with exports declining by 24.5%. The SMMT warns of potential damage to jobs and industry competitiveness if the government proceeds with plans to end Employee Car Ownership Schemes (ECOS). This policy change could affect 60,000 automotive manufacturing workers, reducing their remuneration and personal transport options, particularly in regions with inadequate public transport.
Why It's Important?
The decline in automotive production and the potential end of ECOS pose significant challenges for the UK automotive industry. The cyber attack highlights vulnerabilities in manufacturing operations, while the policy change could exacerbate existing skills shortages and recruitment difficulties. The impact on workers' transport options may hinder flexible shift patterns, affecting productivity and competitiveness. The industry's ability to recover and grow is crucial for economic stability and job creation, making these developments critical for stakeholders.
What's Next?
The upcoming Budget on November 26 will be pivotal, as the government may decide on the future of ECOS. Industry leaders, including SMMT Chief Executive Mike Hawes, are advocating for the reversal of the policy change to prevent further damage to the sector. The government may need to consider alternative measures to support the automotive industry and address the challenges posed by the cyber attack and policy changes. Stakeholders will be closely monitoring the Budget outcomes and potential government interventions.
