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October 27, 2022 05:39 AM

UK automakers ask new premier for a plan as production drops again

Automakers are asking the new Prime Minister Rishi Sunak to help the UK auto industry.

Bloomberg
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    UK PM Rishi Sunak
    REUTERS

    Rishi Sunak, a former finance minister, became the UK's prime minister on Tuesday.

    Automakers asked new Prime Minister Rishi Sunak and his government to improve the UK’s business environment after car production in the country declined again.

    The Society of Motor Manufacturers and Traders included the plea in its monthly report on output, which dropped 6 percent in September to 63,125 vehicles, roughly half what companies produced prior to the pandemic.

    Mike Hawes, the trade group’s CEO, asked Sunak to be a steady hand for the sector struggling with debilitating energy costs and supply chain disruptions.

    “Stability, combined with a plan that tackles critical skills shortages, delivers regulatory certainty and brings down the cost of energy in the long-term, can help put the UK at the forefront of next generation automotive manufacturing,” Hawes said in the statement.

    The UK’s car industry has struggled in the aftermath of Brexit and had trouble making the switch to electric vehicles.

    BMW confirmed this month it will stop making electric Mini hatchbacks in England, opting instead to build the model in China.

    Startup Britishvolt, which the government pledged funding to early this year, is running low on cash and has discussed a potential sale of its main factory site.

    Last week, Electric-vehicle startup Arrival said it will retreat from plans to build its vans in the UK, dealing another blow to Britain’s ambition to transition its manufacturing base to battery power.

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