By GB News (World News) | Created at 2026-10-04 05:07:33 | Updated at 2026-10-04 05:49:25
49 minutes ago
The UK's automotive industry voice has called on the Government to negotiate with the European Union to protect thousands of jobs.
It comes as vehicle production across the country rose by 5.7 per cent to 40,872 units in August, marking only the second rise year-to-date.
The Society of Motor Manufacturers and Traders noted that August is frequently a low output month and subject to volatility.
This is down to different summer shutdown schedules for manufacturers across the UK, which usually includes July and August.
Car production recorded its strongest increase since December 2025, with almost 40,000 units produced after being boosted by output for the domestic market.
Exports posted strong growth in the top 10 markets, especially to Australia (104.7 per cent), Japan (88.4 per cent) and the United States (46.8 per cent).
However, shipments to Turkey (-49.6 per cent), China (-15 per cent) and the European Union (-7.4 per cent) declined.
The SMMT emphasised that UK manufacturing had been backed by the announcement of £1billion in additional funding.
The SMMT has called on the UK Government and European Union to make a new agreement to avoid huge consequences for the auto industry 
GETTY
Nissan, McLaren and Bentley have all committed significant investment to their UK operations over the coming years with fresh funding for factories and vehicle development.
Despite this, the UK remains at risk of being excluded from the European Union's "Made in Europe" proposals included in the Industrial Accelerator Act.
Under current proposals, vehicles built in the UK would be "uncompetitive" in their biggest global market. The SMMT said this would pose an "existential threat" to UK production.
Mike Hawes, chief executive of the SMMT, said: "August's return to growth and this month's £1billion-plus investment commitments show hard-won confidence in UK automotive manufacturing, confidence that must be protected, not put at risk.
Just under 700,000 cars have been produced in the UK so far this year
SMMT
"The UK and EU automotive industries are deeply integrated, so effectively excluding British-produced vehicles from their largest market would assure mutual damage.
"Both sides must urgently agree practical fixes to protect jobs, preserve shared competitiveness and keep the EU and UK industry moving."
Made in EU regulations allow members and trusted partners to benefit from incentives, including CO2 super credits.
The SMMT has called on the UK Government to rearrange the postponed EU-UK summit to be rescheduled, having been delayed earlier this year after Sir Keir Starmer's resignation as Prime Minister.
Nissan recently announced new investment in its UK operations
The industry body said the talks would allow officials to discuss Made in Europe and changes to rules of origin in the Brexit deal (Trade and Cooperation Act).
Without intervention, tougher rules of origin requirements would impact both the UK and EU with additional tariffs on electric and plug-in hybrid vehicles.
Estimates suggest that this could lead to contribute to costs of at least £1.4billion.
