What's happened
Ford unveils new electric vehicle manufacturing plans amid global EV competition, while Chinese automakers expand in Europe and consider UK manufacturing. Nissan explores platform sharing in Sunderland, and Chery invests in UK R&D, signaling a major shift in the automotive landscape.
What's behind the headline?
The UK automotive sector is undergoing a significant transformation driven by Chinese competition and technological innovation. Ford's new manufacturing approach, including a three-pronged assembly system, aims to reduce costs and lower vehicle prices, positioning it to compete with Chinese EVs like BYD. The potential collaboration between JLR and Chery indicates a strategic shift towards localisation and joint manufacturing, which could help revive UK production. However, the sector remains vulnerable to external shocks such as cyberattacks and trade barriers. The emphasis on electric vehicles and new models suggests a future where UK manufacturing could pivot towards more sustainable, cost-effective production, but success depends on government support and industry adaptation.
What the papers say
Business Insider UK reports Ford's new electric vehicle platform and manufacturing system, highlighting the company's strategic shift to smaller, affordable EVs amid Chinese competition. The Independent details China's expanding influence in Europe, with BYD and Chery increasing exports and considering UK manufacturing collaborations. The Guardian discusses Chery's UK R&D investment and potential partnership with JLR, emphasizing China's growing role in the UK automotive industry. Reuters and The Independent also note the industry's recovery prospects, with new EV launches and government support seen as crucial for growth in 2026. These sources collectively illustrate a UK industry at a crossroads, balancing challenges from Chinese entrants with opportunities in electric vehicle innovation and localisation.
How we got here
Recent years have seen UK vehicle manufacturing decline due to cyberattacks, trade tariffs, and industry restructuring. Meanwhile, Chinese automakers like BYD, Chery, and others have increased exports and market share in Europe, driven by electric vehicle growth and government subsidies. Major UK plants, including JLR's Halewood, are exploring local collaborations and new EV models to recover from a tough 2025.
Go deeper
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Jaguar Land Rover Automotive PLC is the holding company of Jaguar Land Rover Limited, a British multinational automotive company with its headquarters in Whitley, Coventry, United Kingdom, and a subsidiary of Indian automotive company Tata Motors.
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Chery Automobile Co. Ltd., trading as Chery and sometimes known by the pinyin transcription of its Chinese name, Qirui, is a Chinese state-owned automobile manufacturer headquartered in Wuhu, Anhui, China.
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BYD Company Limited or BYD is a publicly listed Chinese multinational manufacturing conglomerate headquartered in Shenzhen, Guangdong, China.