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UK Car Production Faces Significant Decline Amid Export Challenges

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Data from the Society of Motor Manufacturers and Traders (SMMT) reveals a sharp decline in UK car production, with both domestic and export markets facing significant downturns. Production for the UK market fell by 20.8% in September compared to the previous year, while exports dropped by 20.6%. This decline follows a particularly strong September 2022, which marked the best month for UK car production since 2020, making the current year-on-year comparison even more pronounced.

Despite the September downturn, overall production for the UK market has seen a year-to-date increase of 6.5%. However, this growth is overshadowed by a steep 14.4% decrease in exports, leading to an overall production decline of 10.2% for 2024, with 592,862 units produced thus far.

Challenges in Overseas Markets

The export slump is particularly evident in several key overseas markets. Shipments to China, a major destination for UK car exports, fell by 23.1% in September as the country grapples with an economic slowdown. While China’s GDP grew by 4.6% in the third quarter of 2024, it fell short of the government’s target of 5%, impacting demand for imported goods, including vehicles. In response, Beijing has implemented measures aimed at stimulating growth in the world’s second-largest economy.

Similarly, exports to the EU, which is the UK’s largest market for cars, experienced a significant decline, dropping by 28.6% in September to 26,825 units. This decrease coincides with weaker car sales across the European bloc, with the European Automobile Manufacturers’ Association reporting an 18.3% drop in EU car sales in August, the lowest in three years. Major markets such as Germany, France, and Italy all experienced double-digit declines.

On a more positive note, exports to the US rose by 24.6% in September, totaling 8,210 units and accounting for 16% of total UK car shipments.

Transitioning to Electric Vehicles

The decline in production has largely been attributed to car manufacturers retooling their factories to focus on electric and hybrid vehicle production. This shift aligns with the UK’s goal of phasing out internal combustion engine vehicles by 2030. Notably, nearly a third of all cars produced in the UK in September were battery electric, plug-in hybrid, or hybrid models, underscoring the industry’s transition toward greener technologies.

Mike Hawes, chief executive of the SMMT, characterized the production declines as “short-term” and anticipated. He emphasized the need for “the necessary industrial and market conditions” to stimulate growth. Hawes urged the government to leverage the upcoming Autumn Budget and industrial strategy to enhance business confidence, attract investment, and secure the competitiveness of the UK automotive sector.

Despite the production challenges, the automotive industry remains the UK’s largest exporter of manufactured goods. The sector accounted for 13.9% of total exports in the first half of 2024, highlighting its critical role in the UK economy. As manufacturers pivot towards zero-emission vehicles, they will depend heavily on supportive government policies and investment to maintain their global competitiveness and meet the growing demand for electric cars.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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