Latest news with #SMMT
Daily Mail
10-06-2025
- Automotive
- Daily Mail
Luxury British car makers like Aston Martin and Morgan facing rocky future as headwinds mount, industry warns
Makers of luxury, high-performance and niche cars face a perfect storm of challenges that 'threaten their competitiveness and growth', a new report by the automotive industry body has warned. The Society of Motor Manufacturers and Traders (SMMT) says famous and celebrated brands such as Aston Martin, McLaren and Morgan are having to cope with volatile trading conditions, stricter decarbonisation rules and production cost pressures. While these marques typically built vehicles in small volumes, they are vital to the economy; they had a combined turnover of £5.5billion in 2024 with round 90 per cent of vehicles shipped to overseas markets. The report shows that they are responsible for just four per cent of the UK's automotive output yet account for 12 per cent of its value – a key reason the SMMT has called them a 'quintessential British success story'. This niche part of the industry also employs more than 15,000 highly-skilled people as well as adding tens of thousands of extra jobs to the supply chain, though increasing headwinds are putting their future at risk. The SMMT's UK's Small Volume Automotive Manufacturers: An Enduring British Success Story report, published Tuesday, has underlining the significant importance of these best of British brands. They include iconic supercar and luxury limo makers such as Aston Martin, Bentley, McLaren, Morgan and Rolls-Royce, but also the likes of electric taxi producer LEVC and Chinese-owned Lotus. These manufacturers are a foundation of British car exports, representing 17 per cent of their value. The also attract some of the best automotive brains from across the world, offering average salaries of £43,729 - some 18 per cent higher than the typical national wage. The SMMT puts the number of additional jobs the sector supports at an impressive 60,000, delivering 'high levels of domestic content'. McLaren Automotive for instance, based in Woking, has a team at the McLaren Production Centre which hand-assembles 22 McLarens each day including the 750S. Leaders of innovation small-volume luxury car makers (SVMs) have also invested significantly in the UK in recent years. They have plumbed a whopping £3.5billion into R&D since 2020, introducing technological solutions in lightweighting, hybrid powertrains and aerodynamics, some of which go on to be used across the wider automotive sector. Recognising the role they play, Industry minister Sarah Jones, said: 'Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy.' McLaren produces its high-performance sports cars at the McLaren Production Centre in Woking, Surrey, UK. This facility, opened in 2012, is part of the larger McLaren Technology Centre However, industry is cautioning that these automakers are 'under real pressure now', with Editor of Auto Express, Paul Baker, explaining that they are 'caught between rising production costs, complex decarbonisation rules and export uncertainty, which was exasperated hugely in March when President Trump announced new 25 per cent tariffs on all non-American cars and car parts'. Originally Trump set the tariff rate on car exports to the US at 27.5 per cent, but a UK-US trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8 which meant US tariffs on UK cars would drop to 10 per cent for the first 100,00 vehicles exported. Despite this improved agreement being far from ideal, Industry Minister Sarah Jones reaffirmed the Government's confidence saying: 'We're ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we've already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities.' The SMMT's report further breakdowns the 'series of challenges' including some 'unique issues' facing SVMs. Because their customers usually order bespoke cars with unique features, brands including Rolls-Royce and Bentley produce in lower volumes with longer product development cycles resulting in manufacturing costs that can take longer to recoup. The sector is therefore calling for government's forthcoming industrial and trade strategies to include measures that address these matters with specific consideration for SVMs. The measures include recognising the value of this critical sector, supporting decarbonisation (giving SVMs a 'flexible path' for their 'unique needs'), providing greater access to R&D funding, delivering trade negotiations to address market access barriers and enabling workforce transition (four out of five jobs will need upskilling by 2030). SMMT chief executive Mike Hawes said: 'Britain's luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing. 'Government rightly recognises the importance of these high-value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive.' Sarah Jones looked to reassure key players, responding: 'Our modern industrial strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.'
Leader Live
10-06-2025
- Automotive
- Leader Live
Luxury UK car makers hit by ‘multiple geopolitical headwinds'
The Society of Motor Manufacturers and Traders (SMMT) said companies such as Aston Martin, McLaren and Morgan are having to cope with volatile trading conditions, decarbonisation rules and production cost pressures. The study found the total turnover of the UK's high-value, small-volume manufacturers in 2024 was more than £5.5 billion, with around nine in 10 of their vehicles shipped overseas. They were responsible for just 4% of the UK's car production, but accounted for 12% of its value. In excess of 15,000 people are employed in high-skilled, well-paid jobs by the companies, the SMMT found. The report stated: 'The UK's small volume manufacturers face a series of challenges … (which) threaten competitiveness and growth.' SMMT chief executive Mike Hawes said: 'Britain's luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story. 'Government rightly recognises the importance of these high-value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive. 'A successful sector would deliver the economic growth, well-paid jobs and exports that Government craves, helping keep Britain firmly on the global automotive map.' Industry minister Sarah Jones, said: 'Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy. 'We're ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we've already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities. 'Our modern industrial strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.' The UK-US trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8. It included American tariffs on UK cars being 10% for the first 100,000 vehicles exported. Mr Trump had previously set the tariff rate on car exports to the US at 27.5%.
South Wales Guardian
10-06-2025
- Automotive
- South Wales Guardian
Luxury UK car makers hit by ‘multiple geopolitical headwinds'
The Society of Motor Manufacturers and Traders (SMMT) said companies such as Aston Martin, McLaren and Morgan are having to cope with volatile trading conditions, decarbonisation rules and production cost pressures. The study found the total turnover of the UK's high-value, small-volume manufacturers in 2024 was more than £5.5 billion, with around nine in 10 of their vehicles shipped overseas. They were responsible for just 4% of the UK's car production, but accounted for 12% of its value. In excess of 15,000 people are employed in high-skilled, well-paid jobs by the companies, the SMMT found. The report stated: 'The UK's small volume manufacturers face a series of challenges … (which) threaten competitiveness and growth.' SMMT chief executive Mike Hawes said: 'Britain's luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story. 'Government rightly recognises the importance of these high-value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive. 'A successful sector would deliver the economic growth, well-paid jobs and exports that Government craves, helping keep Britain firmly on the global automotive map.' Industry minister Sarah Jones, said: 'Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy. 'We're ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we've already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities. 'Our modern industrial strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.' The UK-US trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8. It included American tariffs on UK cars being 10% for the first 100,000 vehicles exported. Mr Trump had previously set the tariff rate on car exports to the US at 27.5%.
North Wales Chronicle
10-06-2025
- Automotive
- North Wales Chronicle
Luxury UK car makers hit by ‘multiple geopolitical headwinds'
The Society of Motor Manufacturers and Traders (SMMT) said companies such as Aston Martin, McLaren and Morgan are having to cope with volatile trading conditions, decarbonisation rules and production cost pressures. The study found the total turnover of the UK's high-value, small-volume manufacturers in 2024 was more than £5.5 billion, with around nine in 10 of their vehicles shipped overseas. They were responsible for just 4% of the UK's car production, but accounted for 12% of its value. In excess of 15,000 people are employed in high-skilled, well-paid jobs by the companies, the SMMT found. The report stated: 'The UK's small volume manufacturers face a series of challenges … (which) threaten competitiveness and growth.' SMMT chief executive Mike Hawes said: 'Britain's luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story. 'Government rightly recognises the importance of these high-value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive. 'A successful sector would deliver the economic growth, well-paid jobs and exports that Government craves, helping keep Britain firmly on the global automotive map.' Industry minister Sarah Jones, said: 'Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy. 'We're ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we've already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities. 'Our modern industrial strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.' The UK-US trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8. It included American tariffs on UK cars being 10% for the first 100,000 vehicles exported. Mr Trump had previously set the tariff rate on car exports to the US at 27.5%.
Rhyl Journal
10-06-2025
- Automotive
- Rhyl Journal
Luxury UK car makers hit by ‘multiple geopolitical headwinds'
The Society of Motor Manufacturers and Traders (SMMT) said companies such as Aston Martin, McLaren and Morgan are having to cope with volatile trading conditions, decarbonisation rules and production cost pressures. The study found the total turnover of the UK's high-value, small-volume manufacturers in 2024 was more than £5.5 billion, with around nine in 10 of their vehicles shipped overseas. They were responsible for just 4% of the UK's car production, but accounted for 12% of its value. In excess of 15,000 people are employed in high-skilled, well-paid jobs by the companies, the SMMT found. The report stated: 'The UK's small volume manufacturers face a series of challenges … (which) threaten competitiveness and growth.' SMMT chief executive Mike Hawes said: 'Britain's luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story. 'Government rightly recognises the importance of these high-value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive. 'A successful sector would deliver the economic growth, well-paid jobs and exports that Government craves, helping keep Britain firmly on the global automotive map.' Industry minister Sarah Jones, said: 'Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy. 'We're ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we've already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities. 'Our modern industrial strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.' The UK-US trade deal was confirmed in a call between Prime Minister Sir Keir Starmer and US President Donald Trump on May 8. It included American tariffs on UK cars being 10% for the first 100,000 vehicles exported. Mr Trump had previously set the tariff rate on car exports to the US at 27.5%.
