Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Carmakers face further hurdle as pound falls

by September 29, 2022
September 29, 2022
Carmakers face further hurdle as pound falls

Just as pandemic-related supply chain dislocation among motor manufacturers has begun to abate, carmakers have warned that they are being hit by the sharp fall in sterling and rapidly rising energy costs.

The latest UK car factory output figures were only 50,000 in August, a rise of 34 per cent on the previous August when factories were recovering from Covid lockdowns and restrictions. For the year to date, volumes remain down by 13 per cent, with the annual production rate of 781,000 less than half of the 1.7 million achieved in the pre-Brexit days of 2016.

British carmaking is dominated by Jaguar Land Rover, Nissan and BMW, with its Mini and Rolls-Royce marques and Aston Martin with its BBX SUV model built in St Athan, Wales.

More than three quarters of cars made in Britain are for export. A dramatic fall in the value of the pound notionally helps exports, but more than half the components used in British-built cars are imported and are made dearer by weaker sterling. Carmakers are also facing rises in the costs of energy and raw materials, as well as post-Brexit trade friction.

The Society of Motor Manufacturers and Traders said the total energy bill for the UK car industry had risen by £100 million a year to £300 million.

Richard Peberdy, head of automotive consultancy at KPMG, said inflation and a weakening pound were driving up costs. “Passing costs to the consumer is becoming increasingly challenging,” he said.

Read more:
Carmakers face further hurdle as pound falls

0
FacebookTwitterGoogle +Pinterest
previous post
Biggest rail strike of the year set to cause weekend of chaos
next post
Vodafone takes title as UK’s most valuable brand

You may also like

Over half of UK employees are forced back...

February 16, 2023

Royal Mail Owner Rejects Takeover Bid from Czech...

April 17, 2024

‘My job is to grow this, not run...

May 19, 2025

Aldi overtakes Morrisons as fourth largest supermarket

September 13, 2022

Jeremy Hunt announces tax rises for all and...

November 17, 2022

Abound Secures £800 Million Funding Round with Backing...

May 7, 2024

UK’s high debt poses challenges for new government,...

July 10, 2024

UK Wage Growth Remains Robust, Dampening Hopes for...

June 12, 2024

Sayed Abazar Wahedi: Bridging Tradition and Modernity through...

January 16, 2025

Starmer installs non-political ministers in ‘government of all...

July 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How Staff Can Strengthen HIPAA Compliance and Security

      June 29, 2025
    • Lotus denies plans to close Hethel factory amid US expansion talks

      June 29, 2025
    • Top university degrees lose sway as tech employers prioritise job-ready skills

      June 29, 2025
    • Government urges supermarkets to make healthy food more appealing in bid to tackle obesity crisis

      June 29, 2025
    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025

    Categories

    • Business (8,334)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved