Car production falls for 12th month in a row as Trump's new 25% tariffs threaten to compound struggles - these British makers will be hit hardest
The number of cars rolling off production lines in the UK has fallen for a 12th consecutive month, figures reveal.
The total output of cars and vans dropped by 11.6 per cent in February to 82,178, according to data published by the Society of Motor Manufacturers and Traders (SMMT).
Car makers turned out 10,787 fewer vehicles than last February, with 'model changeovers' and 'plant restructuring' among the reasons given by the trade body.
And worse is yet to come for British car factories following Donald Trump's announcement on Wednesday that he will slap 25 per cent tariffs on all foreign-made motors arriving in the US in a bid to spur domestic business and protect jobs.
'What we're going to be doing is a 25 per cent tariffs on all cars that are not made in the United States. Business is coming back to the United States,' the President declared to reporters at the Oval Office.
Four in five cars built in Britain are exported overseas - and the US is the second most common destination.
Half of motors produced for foreign markets last month were shipped to the EU, but one in five (19.7 per cent) went to the US, the SMMT confirms.
This was off the back of a 34.6 per cent year-on-year increase in deliveries to the US in February, while shipments to Europe and China fell by 9.6 and 10.9 per cent respectively last month.
Car production in February fell for a 12th consecutive month, according to new industry figures published today in the wake of Donald Trump's announced 25% tariffs on all motors imported to the US from April, which threaten to compound British vehicle makers' struggles
Which UK car makers will be hit hardest by tariffs?
Three quarts of the 603,565 units built for overseas markets in 2024 were shipped to just three - one being the United States.
While the EU accounted for 54 per cent of exports and China 6.6 per cent, some 16.9 per cent of new models built for overseas delivery were destined for US ports.
It means some 102,000 models - estimated to be worth £9billion - coming off British assembly lines ended up in the US last year - that's around one in eight of all passenger cars made here in 2024.
Experts have estimated that the price of cars will rise by thousands of dollars due to Trump's action - and could threaten demand for UK-made motor vehicles on the other side of the Atlantic, increasing the risk to British jobs.
JLR (formerly Jaguar Land Rover) delivered almost 100,000 cars to the US last year - all of them imported and the majority from UK factories, though some from other locations including the Nitra plant in Slovakia.
The tariffs could add as much as $27,000 to the price of a new Range Rover in the United States - almost certainly having a negative impact on sales.
'We are waiting for further information on President Trump's announcement of 25 per cent tariffs on all auto imports into the USA and we will make a further statement, as appropriate, in due course,' a JLR spokesperson told This is Money.
North America is Rolls-Royce Motor Cars' largest sales region, accounting for around a third of the 5,712 luxury models it produced at its Goodwood facility last year.
The US is also the biggest market for British prestige motor brands Aston Martin and Bentley.
BMW's Plant Oxford, where Minis are produced for global markets including the US, will also likely take a hit from the additional tariffs.
'What we're going to be doing is a 25% tariffs on all cars that are not made in the United States. Business is coming back to the United States,' the president declared to reporters at the Oval Office on Wednesday
Four in five cars made in Britain are exported. Half of motors produced for foreign markets last month were shipped to the EU, but one in five went to the US, the SMMT confirms
JLR (formerly Jaguar Land Rover) delivered almost 100,000 cars to the US last year
Ever JLR car sold in the US was imported and the majority come from UK factories - though some from other locations including the Nitra plant in Slovakia
North America is Rolls-Royce Motor Cars' largest sales region of all
US deliveries accounted for around a third of the 5,712 luxury models Rolls-Royce produced at its Goodwood facility last year
Ineos Automotive, the car brand owned by British petrochemicals billionaire Sir Jim Ratcliffe, who now has a stake in Manchester United, said it is 'outraged that the tariff situation with the US has been neglected by the EU,' as it looks set to be impacted by the situation in Washington.
Ineos produces its Grenadier off-roader at a former Daimler factory in Hambach on the French-German border.
Execs said earlier this year they were targeting 'close to 50 percent growth' in US sales in 2025 after delivering some 8,000 Grenadier SUVs in 2024.
President Trump has been 'very clear on his intention to implement tariffs on the auto industry' and has been 'asking for fairness and reciprocity' and yet European leaders have 'not come to the table to negotiate a better solution,' the 4X4 maker said in a statement issued on Thursday.
'The US government has also been clear about the consequences of non-engagement. This should be a surprise to no-one in the EU, and it could and should have been averted,' it added.
Lynn Calder, CEO of Ineos Automotive, commented: 'This is what happens when politicians sit on their hands.
'As a growing EU-based automobile brand, we are vulnerable to tariffs, and we need our politicians to support our business, our jobs and our economies. We need urgent and direct political intervention on tariffs.
'We will give whatever support we can to our political leaders to keep the playing field even for small, competitive brands such as Grenadier.
'But we must see action from EU politicians: only they are in a position to address the issue. Fortunately, we have been planning for tariffs but there is only so much we can do to protect US customers from price rises.'
Ineos Automotive, the car brand owned by billionaire Sir Jim Ratcliffe, said it is 'outraged that the tariff situation with the US has been neglected by the EU'
Lynn Calder, CEO of Ineos Automotive, said: 'This is what happens when politicians sit on their hands. As a growing EU-based automobile brand, we are vulnerable to tariffs, and we need our politicians to support our business, our jobs and our economies'
US tariffs could trigger 'thousands of UK job losses'
Trump said that the tariffs - which go into effect on 2 April - will impact both 'friends and foes'.
He went on to describe the 25 per cent tariffs as 'modest'.
The president added: 'It will lead to tremendous growth in the automobile industry,' while trying to downplay fears that Americans will see higher prices due to the new tariff.
According to the Anderson Economic Group, not only will the price of new models imported from around the globe likely increase, so will the cost of foreign parts needed to repair models produced in the US, which are also due to be impacted by the tariffs.
Tom Jervis consumer reporter at Auto Express said: 'The writing has been on the wall for a while now when it comes to President Trump imposing some kind of tariff on automotive imports into the US, but don’t let that downplay how much of a blow this has the potential to be for the UK car industry.
'Last year, more than £8billion worth of cars were imported to the States from the UK, which accounts for around 14 per cent of all of our exports to the USA.
'However, tariffs go beyond just the automotive industry as studies have estimated blanket tariffs could see global UK exports fall by as much as 2.6 per cent – that may seem like a small figure, but we’re talking about losses of tens of billions of pounds.'
He added: 'These tariffs from Trump could, in a very worse-case scenario, see UK factories close in favour of new facilities being opened up in the US, resulting in the loss of hundreds or even thousands of jobs.
'In turn, this will also impact the UK economy, meaning that everyone will be worse off as a result.'
'Keir Starmer now has the unenviable task of cosying up to Trump to avoid some form of trade war.
'All we ask is that the government supports the UK automotive industry, as it’s the backbone for the nation’s manufacturing sector in an age where we have effectively become a service-based economy.'
The US is also the biggest market for British sports car maker, Aston Martin
Bentley, which produces cars at its Crewe factory, sells most of its cars in the Americas too
Reacting to Trump's 25 per cent tariffs on imported vehicles, SMMT chief exec Mike Hawes warned the move risks hurting both UK and US manufacturers and consumers.
Mr Hawes said it was 'not surprising but, nevertheless, disappointing' and urged both governments to strike a deal that avoids further damage.
'If, as seems likely, additional tariffs are to apply to UK-made cars, it's a blow to a long-standing and productive relationship,' he said.
'US consumers enjoy vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
'Rather than imposing new tariffs, we should be creating opportunities for both British and American manufacturers as part of a mutually beneficial relationship – benefiting consumers and creating jobs and growth on both sides of the Atlantic.'
He called on both sides to 'come together immediately and strike a deal that works for all'.
Labour, fresh off the back of Rachel Reeves' spring statement on Wednesday, was forced into rallying its troops on Thursday morning in an effort to diffuse concerns about the impact to the UK economy.
Asked during a round of interviews this morning about Trump's latest announcement, the Chancellor said the UK is 'having extensive talks our counterparts in the US to protect trade between our countries, those conversations will continue'.
She added: 'Obviously the announcements of tariffs is something that the US plan to bring in next week, but we are in discussions about what that means for the UK.
'A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined.'
After confirming a 12th consecutive month of declining car outputs in the UK, SMMT chief exec Mike Hawes said 'these are worrying times for UK vehicle makers, especially in the face of 'rising trade tensions and weak demand'
Lack of support in Spring Statement a 'missed opportunity'
Production of battery electric, plug-in hybrid and hybrid cars fell by 5.6 per cent last month but their share of production so far this year represent two in five (39.6 per cent) new models, up from 36 per cent a year ago.
The SMMT said Wednesday's Spring Statement by the Chancellor offered no support for the industry or consumers, describing it as a 'missed opportunity'.
Hawes added: 'These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand.
'The market transition is not keeping pace with ambition and, while the industry can deliver growth – and green growth at that – it needs policies to deliver that reality.
'It was disappointing to hear a spring statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing.
'Without substantive regulatory easements our manufacturing viability remains at risk and the UK's transition to zero emission mobility under threat.'
Commenting on production figures released by the SMMT, the Unite union's general secretary Sharon Graham said: 'The UK auto industry is facing a critical moment, with thousands of jobs at risk.
'The government must take action to stop the low-volume crisis from causing lasting damage to the sector.
'Labour’s industrial strategy must provide a clear roadmap through the industry's challenges, guaranteeing a just transition for auto workers.'
