### UK Car Manufacturing Faces Historic Decline Amid US Tariffs The UK car manufacturing sector is experiencing its most significant downturn in 76 years, primarily due to the impact of US tariffs on foreign-built vehicles. In May 2025, production levels fell to their lowest since 1949, with British carmakers halting exports to the US amid escalating trade tensions. The situation has been exacerbated by ongoing model changeovers and restructuring within the industry, leading to a dramatic decline in output and exports. ### Breakdown of the Current Situation 1. **Production Decline**: UK car production has dropped for five consecutive months, with May 2025 recording a 32.8% decrease compared to the previous year, resulting in fewer than 50,000 vehicles produced [https://www.motortrader.com/motor-trader-news/automotive-news/british-car-production-falls-to-lowest-level-since-1949-27-06-2025]. 2. **Impact of Tariffs**: The introduction of a 25% tariff on foreign-built vehicles by the US has significantly affected the export market, leading to a 27.8% drop in car exports in May [https://www.autocar.co.uk/car-news/business-manufacturing/us-tariffs-drag-uk-vehicle-production-lowest-level-1949]. 3. **Industry Response**: The Society of Motor Manufacturers and Traders (SMMT) has indicated that the combination of tariffs, factory disruptions, and the transition to electric vehicle production has created an "incredibly challenging" environment for UK manufacturers [https://www.cardealermagazine.co.uk/uk-car-production-slumps-to-76-year-low-as-smmt-bemoans-incredibly-challenging-period/316428]. 4. **Market Outlook**: Despite the current challenges, there is cautious optimism for recovery as the industry adapts to new market conditions and seeks to innovate in electric vehicle production [https://www.indexbox.io/blog/british-car-manufacturing-hits-lowest-level-since-1949]. ### Supporting Data and Evidence - **Production Figures**: - May 2025 production: **49,810 units**, a decline of **32.8%** from the previous year [https://www.motortrader.com/motor-trader-news/automotive-news/british-car-production-falls-to-lowest-level-since-1949-27-06-2025]. - Exports fell by **27.8%** in May due to tariff impacts [https://www.autocar.co.uk/car-news/business-manufacturing/us-tariffs-drag-uk-vehicle-production-lowest-level-1949]. - **Historical Context**: This decline marks the worst performance for UK car production since **1949**, highlighting the severity of the current economic climate for the automotive sector [https://www.dailymail.co.uk/money/cars/article-14853111/US-tariffs-tank-UK-car-production-Car-manufacturing-suffers-worst-1949.html]. ### Conclusion: A Critical Juncture for UK Car Manufacturing The UK automotive industry is at a critical juncture, facing unprecedented challenges due to external tariffs and internal restructuring. 1. **Significant Decline**: The production has hit a 76-year low, with a **32.8%** drop in output [https://www.motortrader.com/motor-trader-news/automotive-news/british-car-production-falls-to-lowest-level-since-1949-27-06-2025]. 2. **Tariff Impact**: US tariffs have severely disrupted the export market, leading to a **27.8%** decrease in exports [https://www.autocar.co.uk/car-news/business-manufacturing/us-tariffs-drag-uk-vehicle-production-lowest-level-1949]. 3. **Future Prospects**: While the current situation is dire, there is potential for recovery as the industry pivots towards electric vehicle production and adapts to new market realities [https://www.indexbox.io/blog/british-car-manufacturing-hits-lowest-level-since-1949]. The path forward will require strategic adjustments and innovation to navigate the ongoing challenges effectively.