UK car manufacturing experienced a dramatic drop in November, with production falling nearly a third compared to the same month last year. New figures from the Society of Motor Manufacturers and Traders (SMMT) revealed that just 64,216 cars were produced in November 2024, marking a 27,711-unit decline from November 2023. This represents the ninth consecutive monthly decline, reaching the lowest output for November since 1980.

Of the cars produced, fewer than a third (19,165) were either battery electric or hybrid vehicles, with the sector recording a sharp 45.5% year-on-year slump. The overall decline in production mirrors the challenges the UK automotive industry faced in the early 1980s, a period marked by industrial unrest and the dominance of Ford models such as the Escort Mk3, Sierra, and Cortina.

The SMMT’s chief executive, Mike Hawes, acknowledged that while some decline was expected due to ongoing transformations at many plants, manufacturers are facing significant pressures both domestically and internationally. “Billions of pounds are being poured into new technologies, models, and production tooling, but the challenges are formidable,” Hawes said.

The data highlights a growing imbalance in demand. Output for the domestic market fell by more than half, while export production shrank by 21.3%. The total car production for the year so far stands at approximately 734,500 vehicles, a reduction of 108,790 compared to the same point in 2023, and only half of the 2019 levels.

The situation has been exacerbated by recent policy decisions. Stellantis, the parent company of Vauxhall, has announced the closure of its van-making plant in Luton, putting up to 1,100 jobs at risk. Stellantis has partly blamed the closure on the UK’s stringent zero-emission vehicle (ZEV) sales targets, which require manufacturers to meet ambitious annual goals or face substantial fines.

Business Secretary Jonathan Reynolds has acknowledged the industry’s concerns and pledged to review the ZEV mandate, with a government response expected in January. The SMMT has called for swift action, emphasizing the need for incentives to stimulate the domestic electric vehicle market, increased investment in charging infrastructure, and a clearer industrial and trade strategy.

The industry body stressed that immediate and decisive action is necessary to secure the future of the UK automotive sector. “Connecting a thriving local market with robust local production is essential for the sector’s revival,” the SMMT said.

As the UK car industry grapples with technological shifts, changing consumer behavior, and ongoing policy uncertainty, November’s figures underscore the turbulence reshaping the sector.

Sir Keir Starmer is set to appoint Lord Mandelson as the United Kingdom’s next ambassador to the United States, marking the first political appointment to the role in nearly 50 years. This move is seen as a strategic decision aimed at strengthening UK-US relations, especially during a period of uncertainty with the incoming Trump administration.

Lord Mandelson, a seasoned Labour figure and former Business Secretary, has extensive experience in trade and diplomacy, notably serving as the EU’s Trade Commissioner under Tony Blair. His appointment, expected to be confirmed soon, comes at a time when tensions between the UK and US are rising. Incoming President Donald Trump has threatened to impose sweeping tariffs on foreign imports, potentially complicating trade relations between the two countries.

With Trump’s allies suggesting that the UK may have to choose between aligning with the US or the European Union, Sir Keir has dismissed this binary choice. “We must find a way to have our cake and eat it,” Mandelson remarked previously, stressing the need for Britain to navigate its ties with both the EU and the US without being forced into an either/or situation.

Mandelson’s political comeback is notable, having not held a government position since 2007. His close ties to Starmer’s chief of staff, Morgan McSweeney, and support from Foreign Secretary David Lammy, have made him a strong contender for the role. One source described his appointment as a sign of how seriously Starmer takes UK-US relations, particularly as the UK braces for potential economic fallout from Trump’s proposed tariffs.

The current UK ambassador to the US, Dame Karen Pierce, will remain in her post until the end of January when Trump is inaugurated. Pierce, who has established significant Republican contacts, played a key role in facilitating a meeting between Trump, Starmer, and Lammy in November.

Mandelson’s appointment follows speculation about potential candidates for the role, including David Miliband and Baroness Amos. Sir Keir is eager to build strong ties with the Trump administration, with McSweeney recently meeting with key Trump strategist Susie Wiles in the US.

However, tensions persist, particularly following accusations during the US election campaign that Labour had interfered in the race. Despite these disagreements, Trump has expressed admiration for Starmer, calling him a “very nice guy” who was “very popular” ahead of the election.

With Brexit and Trump’s tariff threats looming large, Mandelson’s diplomatic skills will be crucial in ensuring the UK’s interests are well-represented in Washington. The EU is expected to retaliate with its own trade measures if tariffs are imposed, but experts suggest the UK’s resilience may lie in its export of services, which make up two-thirds of its £188 billion annual exports to the US. By appointing Mandelson, Starmer signals a commitment to navigating the complexities of global trade with expertise and diplomacy.