Automotive News – Late November 2024
Estimated reading time 5 minutes
Alarm bells ringing as EV transition hits auto industry.
• Auto sector calls for urgent market intervention as weak demand and unsustainable business costs undermine UK industry.
• Car manufacturers face almost £6 billion bill to meet ZEV Mandate in first year, new analysis shows.
• Industry outlook anticipates 116,000 fewer new electric cars and vans will be registered this year compared with expectations when mandate was announced.
• 30% boost in EV model choice since last year and estimated £4 billion in manufacturer discounts fail to stimulate consumer demand to level needed.
Rules on the percentage of electric vehicles (EVs) car firms must sell will not be weakened, the transport secretary has said, despite growing pressure from the industry.
The mandate will become tougher next year ahead of a complete ban on new diesel and petrol cars in 2035, but car makers have suggested the rules could threaten jobs.
Several senior government ministers and car makers with factories in the UK will hold crunch talks this week about the EV mandate and the slump in car demand. Louise Haigh said she will look at “flexibilities”, but insisted that “the mandate will not be weakened”.
HGV market slows down as demand normalises following bumper year.
- Heavy goods vehicle market falls by -6.0% in quarter compared with last year’s significant uptake.
- Decline driven by fall in demand for largest trucks, but overall uptake still above pre-pandemic levels.
- Zero emission truck market shrinks for first quarter this year, but share of overall market holds steady for year to date.
- https://www.smmt.co.uk/2024/11/hgv-market-slows-down-as-demand-normalises-following-bumper-year/
UK gets bus boost with year and a half of growth.
- Number of new buses, coaches and minibuses joining UK roads up a third in Q3, marking six consecutive quarters of market growth.
- Demand rises in every segment with strongest growth in new minibus and single decker markets.
- Sector continues to lead road transport decarbonisation with ZEVs representing a fifth of registrations YTD.
- https://www.smmt.co.uk/2024/11/uk-gets-bus-boost-with-year-and-a-half-of-growth/
warning that the current targets threaten the competitiveness of the country’s automotive sector and could jeopardise thousands of jobs.
The ZEV mandate requires the automakers to keep reducing the number of new petrol and diesel cars and vans sold each year, while increasing the share of ZEVs in their annual sales to support a complete phase-out of sales of new petrol and diesel cars.
The annual car sales targets for manufacturers are set as follows: 22% ZEVs in 2024, 28% in 2025, 33% in 2026, 38% in 2027, 52% in 2028, 66% in 2029, and 80% in 2030.
Luxury car manufacturer Jaguar has unveiled a new logo and branding ahead of its relaunch as an electric-only brand.
The British vehicle maker, owned by Tata Motors, will launch three new electric cars in 2026, having taken new cars off sale more than a year ago to focus on reinventing the brand.
Ford has announced it will cut 800 jobs in the UK over the next three years. The move is part of a major restructuring programme, which will see 4,000 posts closed across Europe as a whole.
The company said it had to act because of difficult trading conditions, including intense competition and weak demand for electric vehicles.
Aston Martin has tapped up investors for a £211m fundraise after issuing a second profit warning in two months.
New chief executive Adrian Hallmark, who became the luxury car maker’s fourth boss in four years in September, has downgrading expectations again after delays in the delivery of some of its Valiant models. The result is it now expects adjusted earnings to be £270m-£280m, up to 10% lower than last year.
Aston Martin is raising £210m through a £111m placing supported by the issue of £100m of additional senior secured notes.
The Stellantis electric van production site at Ellesmere Port, and its 1,100 jobs, have been saved from the axe.
The car manufacturer has announced plans to close its van production site in Luton, with the loss of more than 1,000 jobs, and switch production the Cheshire plant, which was previously the home of the Vauxhall Astra.
It said hundreds of jobs from the Bedfordshire plant could be transferred to Ellesmere Port, and that it will invest a further £50m into the Cheshire plant, linked to the proposed increase in output.
UK car production fell sharply in October amid industry concerns about “intense pressure” on investment in electric vehicle-making.
Output of all cars dropped by more than 15% from a year earlier, mainly due to a fall in exports following weak demand, the Society of Motor Manufacturers and Traders (SMMT) said.
Production of electric and hybrid vehicles declined by a third compared with last year, due to flagging European demand and the retooling of factories for new models.
The figures come after Vauxhall maker Stellantis said this week it would close its Luton van-making factory, partly due to rules imposed to speed up the transition to electric vehicles in the UK.
