The Telegraph’s Post

Looks like U.K. automotive manufacturing will become highly niche, low volume moving forward! The restructuring of the U.K. automotive sector over the last 40 years has meant its slow death allows a transition to service sector roles. This has one benefit in that the transition wasn’t forced unlike what will happen in Germany and France. It’s a shame the U.K. didn’t take advantage of the EV transition more than 10 years ago but I guess we have lost the entrepreneurial spirit outside of complex finance derivatives. The key issue facing all future governments is; 1) Follow Trump and increase import tariffs on all cars from outside the U.K.? 2) Provide huge financial incentives for Chinese companies to encourage manufacturing in the U.K. 3) Both 1) and 2) combined Thoughts? https://lnkd.in/etkuPJjH

Automotive manufacturing has been a foundation for the American economy (and national security) for a century. These articles point out how long term investment in China threatens a manufacturing revolution. Will we have the typical American response to catch up and pass?

Note BYD is covering their bases with HEV and PHEV offerings to avoid looming overseas tariffs on full BEVs...

Note BYD is covering their bases with HEV and PHEV offerings to avoid looming overseas tariffs on full BEVs…

Car production falls as factories continue model transition. In August 2024, UK car production fell by 8.4%, with 41,271 units produced, largely due to factory shutdowns and transitioning to new models, particularly electric vehicles. Domestic production dropped by 19.8%, while exports saw a smaller 5.9% decline, with the EU remaining the largest export market. Despite a 25.9% fall in electrified vehicle production, long-term growth is expected as new models roll out. Year-to-date production is down 8.5%, though the industry remains optimistic due to significant investments and upcoming government strategies to support competitiveness.

I just listened to a Canadian auto trade representative. he stated that the proposed 25% tariff on our neighbors by the president elect could not happen. he stated that the auto industry makes single digit profit margins therefore it would make the impacted companies unprofitable hence could not happen. going back to my principals… is that true? well let’s dig into some AI generated data… in 2022 China exported $23B worth of auto parts to the US with a 28% tariff rate… one might say well Canada prodomently exports vehicles so it’s different… okay let’s dig into that data… per AI Canada exports 2.4M vehicles to the US through 5 assembly plants. that is approximately 500k vehicles per assembly plant. the US has between 10-20 assembly plants that are not being utilized. in China one of our US manufacturers started a factory from scratch in 167 days that produces 950k vehicles per year. this gentleman I listened to I’m certain is smarter than I am on this topic. it concerns me greatly how we have come to such different conclusions. hopefully it’s moot & a win win negotiation takes place.

UNITED STATES AWARDS $1.7 BILLION TO LEGACY AUTOMAKERS TO CONVERT TO ELECTRIC VEHICLE PRODUCTION: The United States Government has announced that it will grant carmakers across the country a total of $1.7 billion to convert closed or at-risk production and assembly facilities into electric vehicle and electric vehicle supply chain production facilities. In detail, eleven plants across eight states—Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia—will be transformed as part of President Joe Biden’s Investing in America agenda. The list includes Stellantis, which will receive $334 million to reopen its shuttered final assembly plant in Belvidere, Illinois, which is expected to re-employ 1,450 jobs. Also among the 11 facilities is the company Blue Bird, which will receive $80 million to modernize and convert its facility in Georgia to scale up the production of electric school buses. Secretary of Energy Jennifer M. Granholm highlighted that foreign competitors invest heavily in electric vehicles and underscored that the grants would help keep U.S. manufacturing competitive. The topic of foreign competition has been at the forefront of political discourse over the last months. Recently, the U.S. and the European Union both imposed import tariffs on Chinese-made EVs. On separate occasions, President Biden and EU Commission President Ursula von der Leyen spoke of Chinese goods “flooding” world markets through artificially low prices. Source: partner Rohstoff.net

Are US-made electric vehicles (EVs) falling behind China? A thought-provoking read caught my attention this morning. Check out the article and let me know your thoughts in the comments. #technology #procurement #sourcing #indirectprocurement #supplychain #consulting #entrepreneurship #leadership

Heightened US tariff policies are rattling the automotive industry, threatening higher vehicle costs. Industry insiders note that while the US mandates final assembly domestically, sourcing 20,000-30,000 components per vehicle locally is impractical. Tier 1 suppliers, with production hubs in Mexico, remain largely unaffected by policy shifts. For daily news and analysis subscribe to the https://lnkd.in/gkhK-zyg newsletter. #Tech #Innovation #Startups

.Auto expert Mashood Khan, "The government needs to take decisive action to address the issues at hand. Industrialists should be consulted to resolve these problems swiftly. Any irregularities should be corrected within 24 hours, as prioritising the industry is crucial for the country's overall interest." Khan also highlights that the shutdown affects around 140-145 vendors, potentially jeopardising their ability to pay workers on time. Both workers and factory owners are burdened by high taxes and exorbitant energy costs. "The cost of doing business is a complex issue that the government must address to ensure the industry's survival," Khan adds. auto expert Mashood Khan said, "The government must take aggressive initiatives to address the issues being faced by the company. Industrialists must be called to fix this problem. If there are some abnormalities, they must be removed within 24 hours. #autoindustry #oem #autoparts #sme #Industrialists #government #energycost #costofdoingbusinesses #vendors #banks https://lnkd.in/da8yJb5y