Category Archives: Automotive industry

Carmakers scramble to plug £3bn shortfall for UK loan scandal payouts

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Filings suggest manufacturers’ lending arms have massively underestimated bill from FCA’s £9.1bn redress scheme

Carmakers are under pressure to drum up £3bn to cover payouts for motor finance scandal victims after failing to adequately prepare for a UK-wide compensation scheme that is due to begin this summer.

Company filings show the lending arms of big vehicle manufacturers including Ford, BMW, Stellantis and Volkswagen may have massively underestimated the final costs of the financial regulator’s £9.1bn redress scheme.

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Car finance victims to get an average £830 payout but fewer loans eligible

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City regulator reduces number of loan agreements in line for compensation from 14m to 12m

Victims of the car finance scandal will be in line for payouts worth £830 on average, as the City regulator tightened the rules of its compensation scheme to cover fewer contracts.

The Financial Conduct Authority (FCA) released the final details of its planned redress programme, saying it had narrowed the number of loan agreements eligible for payouts from 14m to 12.1m contracts.

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How EVs could be part of answer to UK’s fuel reserve worries

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More use of two-way charging will earn money for owners and could avoid the need to expand North Sea oil drilling

The Iran war has sent petrol and diesel prices to their highest levels in years, sparked warnings of fuel rationing across Europe and triggered calls for Britain to drill more North Sea oil and gas. But analysis suggests the UK is looking for solutions in the wrong places – and that one of them is sitting on people’s driveways or parked in the street.

If more drivers switched electric vehicles, Britain would sharply reduce its petrol and diesel consumption, with every car charged from the grid rather than the pump extending the country’s fuel reserves – and experts say the potential impact goes far beyond that.

If more drivers switched to electric vehicles, Britain could sharply reduce its petrol and diesel consumption. Every car charged from the grid rather than the pump extends the country’s fuel reserves – and experts say the potential impact goes far beyond that.

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Five firms including Autotrader and Just Eat investigated over fake review failings

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CMA also looks into Pasta Evangelists, funeral operator Dignity and review company Feefo in latest crackdown

The UK competition watchdog has launched investigations into five companies including Autotrader and Just Eat over concerns they have not done enough to tackle fake and misleading online reviews.

The Competition and Markets Authority (CMA), which has previously investigated the tech companies Amazon and Google, said its latest crackdown includes the funeral services operator Dignity, the review company Feefo and the restaurant chain Pasta Evangelists.

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Bentley to cut hundreds of UK jobs amid ‘challenging global market environment’

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Carmaker reduces office-based roles and will not fill vacancies ‘to ensure long-term competitiveness of business’

Bentley is to cut 275 jobs in the UK as the carmaker faces a “challenging global market environment”.

The luxury brand, owned by Germany’s Volkswagen, is preparing to launch its first all-electric model but acknowledged it had some work to do to persuade consumers to switch away from internal combustion engine vehicles.

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‘Shockingly bad’: Nissan Leaf drivers voice anger over app shutdown

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Carmaker’s decision to drop NissanConnect EV app on relatively recent cars fuels warnings from experts

Owners of some Nissan Leaf electric vehicles are angry after the carmaker announced it would shut down an app that lets them remotely control battery charging and other functions.

Drivers of Leaf cars made before May 2019 and the e-NV200 van (produced until 2022) have been told that the NissanConnect EV app linked to their vehicles will “cease operation” from 30 March. This means they will lose remote services, including turning on the heating, and some map features.

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Three-quarters of Australia’s new cars use more fuel than advertised lab rating, testing shows

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Cars with higher real-world consumption may add to Australia’s difficulties in reducing transport emissions

Another 10 cars have failed to live up to fuel efficiency promises when tested in the real world, adding to Australia’s difficulties in reducing emissions from transport.

The Australian Automobile Association’s latest test confirmed 76% of new petrol, diesel and hybrid vehicles are still using more fuel on roads than in mandatory lab testing.

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Aston Martin issues another profit warning and sells F1 naming rights for £50m

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Struggling British carmaker says earnings for 2025 will be worse than City forecasts as US tariffs hit sales

Aston Martin has warned that its losses will be worse than expected and sold its permanent naming rights to its Formula One team, as the struggling British carmaker battles to stabilise its finances.

The luxury carmaker, majority-owned by the Canadian billionaire Lawrence Stroll, said its earnings for 2025 would be worse than City forecasts, its fifth profit warning since September 2024.

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Motability scheme to drop BMW and Mercedes as it aims to buy UK-made cars

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Rachel Reeves says changes to subsidised scheme for disabled drivers will help support thousands of jobs

The Motability scheme to provide disabled drivers with subsidised cars has said it will remove expensive cars such as BMW and Mercedes-Benz and aim to buy more British-built cars.

Motability said it hopes that 50% of the vehicles it offers will come from British factories by 2035. The chancellor, Rachel Reeves, said the changes to the scheme would “support thousands of well-paid, skilled jobs”, before the budget on Wednesday.

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About 1m Ford diesel cars sold in UK with defective emissions controls, court told

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Ford denies having created ‘defeat devices’ in legal action on behalf of 1.6 million owners against five carmakers

About a million Ford diesel cars were sold in the UK with serious defects in components supposed to curb toxic exhaust emissions, the high court has been told.

The highly polluting vehicles were produced and sold between 2016 and 2018 after Ford’s engineers became aware of the issues, and many were never formally recalled or fixed, lawyers said.

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Nexperia halts chip supplies to China in threat to global car production

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Dutch-controlled company informs customers about suspension but is said to want to de-escalate trade war

Nexperia, the EU-based automotive chipmaker at the centre of a geopolitical dispute, has suspended supplies to its Chinese factory, stepping up a trade war that threatens to halt production at carmakers around the world.

The company wrote to customers this week informing them all supplies to a Chinese plant had been suspended.

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Ministers’ claims to have helped JLR in doubt as £1.5bn support left untouched

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Exclusive: No cyber-attack assistance cash has gone into carmaker’s accounts or to struggling suppliers

Jaguar Land Rover has not drawn down any of a £1.5bn loan facility guaranteed by the government, with suppliers expressing anger over ministers’ claims to have supported the carmaker’s supply chain after a crippling hack.

Britain’s biggest automotive employer was forced to shut down all of its wholly owned factories from 1 September for more than a month, after cyber-attackers compromised key computer systems.

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Carmakers chose to cheat to sell cars rather than comply with emissions law, ‘dieselgate’ trial told

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Mercedes, Ford, Renault, Nissan and Peugeot/Citroën face group action in which damages could exceed £6bn

Car manufacturers decided they would rather cheat to prioritise “customer convenience” and sell cars than comply with the law on deadly pollutants, the first day of the largest group action trial in English legal history has been told.

More than a decade after the original “dieselgate” scandal broke, lawyers representing 1.6 million diesel car owners in the UK argue that manufacturers deliberately installed software to rig emissions tests.

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UK opens up more driving test slots to help reduce backlog

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Driver and Vehicle Standards Agency says learners booking tests earlier has contributed to rising demand

More driving test slots are being made available to tackle a severe backlog as figures show a 15% increase in learner drivers with future tests booked compared with this time last year.

Driver and Vehicle Standards Agency (DVSA) figures show 668,128 people had a practical driving test booked in Britain at the end of September, up from 579,138 a year earlier.

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Jaguar Land Rover parts makers asked by banks to put up homes as loan security after hack

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Lobby group says urgent government intervention required as small suppliers on brink of collapse during shutdown

Small companies who supply parts used in Jaguar Land Rover cars have been asked by banks to put up their family homes as personal guarantees in order to access emergency loans, with no direct UK government support on offer for parts makers a month after the carmaker was hit by a crippling cyber-attack.

JLR, Britain’s biggest automotive employer, is considering making advance payments to top-tier suppliers as it tries to restart production after the hack, but smaller parts makers warn they are on the brink of collapse without urgent cash injections.

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Chinese carmakers told to improve locking devices for UK market

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UK insurers require critical modifications for sale in country with higher levels of car theft than China

British authorities may have certain concerns about the cyber-spying threat from vehicles made in China, but it turns out the country’s manufacturers have security worries of their own.

Insurers have told Chinese carmakers they need critical modifications for vehicles on British streets: namely, tougher locking devices to make them harder to steal.

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Jaguar Land Rover says cyber-attack has affected ‘some data’

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Carmaker has informed relevant regulators and ‘will contact anyone as appropriate’ as investigation progresses

The cyber-attack on Jaguar Land Rover has affected data held by the carmaker, it has said, as its factories in the UK and abroad face prolonged closure.

JLR, Britain’s biggest carmaker, said on Wednesday that in its investigations into the hack, which first emerged last week, it had now discovered data had been breached.

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At least 475 workers detained in major Ice raid at US Hyundai factory

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South Korea concerned after hundreds were arrested at Georgia work site making batteries for Hyundai and Kia cars

Hundreds of workers at a factory being built in Georgia to make car batteries for Hyundai and Kia electric vehicles were detained in a huge raid by Immigration and Customs Enforcement (Ice) on Thursday that stopped construction.

The facility is part of what would be the biggest industrial investment in the state’s history and had been hailed as a huge boost for the economy by Georgia’s Republican governor, Brian Kemp.

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Four Chinese carmakers enter Australian top 10 for first time, while Tesla sales slump

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BYD overtakes Mitsubishi after nearly quadrupling sales in past year, according to official figures, as GWM, MG and Chery also surge

Australians bought more than 20,000 Chinese-made vehicles in August, putting four Chinese brands into the top 10 for the first time, while Tesla sales have slumped by more than a third.

BYD came in sixth for the month, overtaking Mitsubishi, after its sales nearly quadrupled compared with August 2024, while GWM, MG and Chery each outsold Isuzu Ute in the month to round out the top 10.

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Safety and space at risk as SUVs reach 30% of car market in English cities, researchers warn

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Campaigners call for Paris-style parking charges amid fears big vehicles are taking up excessive public space

The number of giant cars in England’s cities has increased tenfold in recent years, according to researchers, who warn the vehicles are taking up excessive public space and posing a threat to public safety.

Analysis published by Clean Cities has found SUVs have gone from 3% to 30% of existing cars in the past two decades. In London, the number of SUVs has increased from about 80,000 in 2002 to about 800,000 in 2023.

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