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Government delivers support to UK car industry after pressure from manufacturers

2025-04-24 03:13:49 By

Launch of new Nissan electric vehicles at Sunderland

The UK Government has announced a series of initiatives aimed at supporting the automotive industry amidst challenges posed by US tariffs and the transition to electric vehicles.

Already lobbying for modifications to the electric vehicle mandate, the car sector was hit hard by the imposition of a 25% tariff on exports to the US. In response to concerns over potential job losses, the Government has introduced a range of measures designed to bolster this crucial sector. A key element includes easing the targets for electric vehicle sales, after Nissan highlighted that stringent goals could jeopardise the 'viability' of its UK presence, including its Sunderland plant.

Prime Minister Sir Keir Starmer said: "Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside.

"That means action, not words. So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride. And it will boost growth that puts money in working people's pockets, the first priority of our Plan for Change."

Business Secretary Jonathan Reynolds, said: "This pro-business Government is taking the bold action needed to give our auto sector the certainty that secures jobs, drives investment and ensures they thrive on the global stage. Our Industrial Strategy will back the country's high growth sectors, including advanced manufacturing, so we can grow the economy and deliver on the promises of our Plan for Change."

In a move to support car manufacturers towards the 2030 target for ending the sale of petrol and diesel vehicles, changes have been made to the zero emission vehicle mandate that introduce increased flexibility during the transition period and extend the allowance for hybrid usage. Several smaller companies like McLaren and Aston Martin are set to benefit from exemptions within these targets.

It has been reported that fines for manufacturers for each non-compliant vehicle sold will be lowered from £15,000 to £12,000.

Nissan, which mainly exports its Sunderland-manufactured vehicles into Europe and therefore less susceptible to US tariffs, has revealed a trio of models—including the new generation Leaf, an all-electric Juke and the reintroduction of the Micra—all of which are expected to perform strongly in European markets. The company's recent publications showed a significant boost in its UK operations, with production scaling up to 325,000 vehicles and revenues climbing to £7.3bn in their 2024 accounts.

Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT) welcome the measures to support car manufacturers in the switch to electric vehicles as a '"really needed" step.

Speaking on BBC Radio 4's Today programme, he said: "No one in the industry is denying that ultimately, we need to get to zero emission road transport but the underlying level of consumer demand just doesn't match those ambitious targets. It was a step that was really needed for this industry because the amount of pressure, financial pressure, that they're under from any number of global headwinds is severe at the moment."

However, Robert Forrester, CEO of Gateshead-based listed motor retailer Vertu, said the Government's announcement "doesn’t really address the major issues".

He said: “We have got 34 different global manufacturers and clearly the tariffs in the US have put most of those manufacturers under more pressure at a time when there was already pressure in the system. That’s why the Government has actually made this announcement. I’m not sure it actually goes far enough to address what will be quite significant issues in the years ahead.

"The electric vehicle targets up to 2030 remain in place, the fines have been changed but it’s still a £12,000 fine for every petrol and diesel car up to 2030 that is sold above the zero emissions target - that’s billions of pounds to manufacturers - and manufacturers face a choice of either paying significant fines or rationalising petrol and diesel cars. Nothing has really changed here, this is real tinkering.

Very Supportive

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JLR to 'pause' shipments to US after Trump tariffs

2025-04-24 03:13:49

Car giant JLR has announced a pause in shipments to the United States to tackle "address the new trading terms" imposed by Donald Trump's tariffs. Thursday saw the imposition of a 25% tax on all foreign-made vehicles entering the US, followed by the introduction of a 10% "baseline" tariff on global imports on Saturday morning. JLR, formerly Jaguar Land Rover, is one of many firms worldwide contending with the repercussions of the new trade rules and the resulting market instability. In a statement issued on Saturday, a JLR spokesperson confirmed: "The USA is an important market for JLR's luxury brands. They added, "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." Global trade has been significantly impacted following President Trump's declaration of the tariffs at the White House this past Wednesday. The fallout was significant, with the FTSE 100 enduring its worst trading session since the pandemic began on Friday, and comparable downturns affected Wall Street as well. The FTSE 100 saw all but one stock fall, with Rolls-Royce, the banking sector, and mining companies witnessing substantial losses. Prime Minister Sir Keir Starmer has pledged to “do everything necessary” to protect the UK’s national interest after the tariffs were imposed, saying ministers are “ready to use industrial policy” to support businesses. Writing in the Sunday Telegraph, he said “the immediate priority is to keep calm and fight for the best deal”. He said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, and added: “We stand ready to use industrial policy to help shelter British business from the storm.” London's leading stock market index, the FTSE 100, dropped 419.75 points, or 4.95%, to close at 8,054.98 on Friday, marking the largest single-day fall since March 2020 when the index lost more than 600 points in one day. The Dow Jones also took a hit, falling 5.5% on Friday as China matched Mr Trump's tariff rate. Beijing announced it would retaliate with its own 34% tariff on imports of all US products from April 10. Ministers are still striving to secure a deal with the US, hoping that it could provide some exemption from the tariffs. Rachel Reeves stated on Friday that the Government is "determined to get the best deal we can" with Washington.

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Hundreds of cereal factory jobs at risk as as Cereal Partners UK and Ireland proposes Wirral closure

2025-04-24 03:13:49

Over 300 jobs are under threat at a Merseyside cereal factory, as Cereal Partners UK and Ireland has announced the plant might close. Cereal Partners, the producer of Nestlé cereals including Cheerios, Shreddies, and Nesquik, is consulting over the future of its Bromborough facility in the Wirral. The company has proposed shifting investment from the plant, which makes both branded and supermarket branded cereals to its Staverton factory in Wiltshire. The workforce at the Wirral site was informed yesterday about the potential shutdown, which would put 314 positions at risk if implemented. A spokesperson for Cereal Partners stated: "Cereal Partners United Kingdom and Ireland (CPUKandI) is talking to employees about proposed changes to manufacturing that would involve a £74m investment at its Staverton factory and the closure of its factory in Bromborough. Regrettably, these proposals would put 314 roles at risk of redundancy. "The Bromborough factory currently manufactures both branded and supermarket branded cereals. Under the proposals, production of branded cereals at Bromborough would be transferred to CPUKandI's Staverton site where £74m would be invested to expand the factory's capability and around 60 new roles created." The company has indicated it may cease producing supermarket branded cereals and exit that segment of the market upon the conclusion of its current contractual obligations, reports the Liverpool Echo. Explaining its reasoning, the firm highlighted: "Both CPUKandI factories are currently below capacity. These proposals would adjust CPUKandI's manufacturing footprint to better match demand and simplify our portfolio to focus investment on our branded cereals. Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options. "CPUKandI regrets the potential impact on employees and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity." The firm stated it remains open to other options, such as selling the Bromborough manufacturing facility or the supermarket-branded cereal production business itself. The spokesperson said: "It is important that discussions with employees and their representatives are carried out in a private and respectful way and our people are the first to hear of any future developments. There will be no further communication on these proposals until those discussions are complete." Concerns have been raised by a number of Bromborough factory employees, who have reached out to the ECHO. Matt Denton, GMB regional organiser, said: "This is a deeply worrying time for GMB members and their families. For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses. "Three hundred skilled workers facing an uncertain future is simply unacceptable. GMB will fight to protect jobs, secure fair treatment for workers and explore all potential options to mitigate the impact of this closure. "We demand urgent talks with management and call on the company to engage with us to make sure workers' voices are heard, and livelihoods are prioritised."

Tech

Trump's tariffs are a 'lose-lose' - West Midlands business leaders react to the new import tax

2025-04-24 03:13:49

Global stock markets have tumbled while local manufacturers such as JLR and JCB have started assessing their business activities as President Donald Trump imposes a new raft of import tariffs. After being announced in February, the tariffs came into force over the past few days and have seen goods imported into the US from the UK hit with a baseline tariff of ten per cent. However, this rises to 25 per cent for all foreign-made vehicles entering the US, prompting Coventry-headquartered JLR to pause its exporting activities into America. And like JLR, Warwickshire sports car brand Aston Martin does not have a factory in America, meaning the fiscal implications could be even greater, especially as the US market represents around 30 per cent of its annual sales. The UK has got off light compared to the other countries and regions, with China being hit with a 34 per cent tariff, 20 per cent for the EU and a whopping 46 per cent for Vietnam - prompting fears of a 'global trade war'. Business leaders in the West Midlands have been reacting to the new tariffs coming into force and the potential implications going forward. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce, described it as a "lose-lose" situation for everyone and urged the UK Government to do all it could to provide practical support to businesses now making difficult decisions about trading with the US. "We also encourage Greater Birmingham firms to immediately start negotiations with their US customers on managing the impact of these tariffs if their contacts allow," she said. "Longer term, they may want to explore alternative markets, especially the EU, countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or those where we're expecting other trade deals to be made later this year. "The Bank of England cited intensified uncertainty in global trade as one of the reasons to hold off on lowering interest rates last month. They'll be carefully monitoring the impact of these tariffs, particularly on inflation and employment, as they consider future rate cuts. "A global trade war would likely give a significant knock to UK GDP and that could have repercussions for the Chancellor's fiscal headroom - if that gets wiped out then we would be looking at either more spending cuts or more tax rises. "The UK government must remain level-headed and continue to work with the US administration to find a mutually beneficial agreement on tariffs and trade." Janie Frampton, president of the Greater Birmingham Global Chamber of Commerce, said: "The ten per cent tariff on goods imported from the UK into the United States is unhelpful but is significantly lower than has been imposed on many other major US trading partners, including the EU. "However, there is no escaping the fallout from these decisions, which will increase the risk of trade diversion and cause great uncertainty for business communities across the world. "The Government has kept a cool head during negotiations so far and getting the best deal for the UK is what matters most. "It is vitally important the Government does not give up on negotiations and, in the meantime, provides the necessary support to impacted businesses. Tariffs can be lifted at any time and the US has left the door open to do some form of deal with us." David Morris is head of the Midlands operation for financial and business services firm PwC in Birmingham. "The announcement of tariffs will have a significant impact in the UK, and especially in the West Midlands, where we have strong manufacturing and automotive roots," he said. "This presents new and immediate challenges for business. Cars make up 49 per cent of the exports from the West Midlands to the US which represents five per cent of the region's GVA. "To successfully navigate through this uncertain period, business leaders will need to make strategic decisions which consider how they source, price and manage risk. Being agile and resilient will be essential. "Looking ahead, close collaboration across policy makers, business and education providers will ensure the West Midlands can continue to build on diversifying its offering - strengthening our professional and financial services and supporting our growing technology sector." David Hooper is the managing director of Hooper & Co, a Warwickshire-based international trade consultancy. He has warned UK exporters to review their export documentation urgently or risk being hit with tariffs of up to 54 per cent due to supply chain "blind spots". Mr Hooper said it was crucial firms were aware that tariffs would be applied based on the country of origin, not the country of export. "We're urging all UK exporters to immediately audit their supply chains and ensure they have robust documentation in place, especially when it comes to the origins of goods and any potential blind spots that could incur unexpected charges," he said. "A product made in China but re-exported from the UK will face a tariff of up to 54 per cent unless it qualifies under origin rules as having been substantially transformed in the UK. "If your paperwork doesn't prove UK origin, your goods could be incorrectly classified and your business could be hit with extra costs and delays. "With such short implementation timelines and variable tariff rates depending on origin, this is one of the most challenging compliance environments UK exporters have faced in recent years. UK businesses must therefore act now to protect their margins and avoid disruption. "UK manufacturers who can demonstrate clear origin have a potential competitive edge in the US market but only if they get their documentation right." Looking further ahead, he added: "China is expected to respond with countermeasures and the EU has already signalled its intention to introduce tariffs of its own. "UK exporters are entering a period of heightened regulatory complexity and trade volatility. It's so important they have a solid understanding of their current activity and processes to avoid any further headaches." Johnathan Dudley, is a partner and the head of the manufacturing team at accountancy group Crowe in Oldbury. He said it was vital for companies to focus on seizing opportunities to promote more UK and European manufacturing. "You cannot control what you cannot control so it's important for UK businesses to concentrate energy and efforts on what they can," he said. "For UK industries, including steel production, processing and the automotive supply chain, the tariffs come at a challenging time. "It'll be key for these industries to assess their options and explore diversification - particularly in light of the UK government's increase in defence spending and healthcare. "Outside automotive, a ten per cent tariff arguably gives UK companies a competitive advantage over those with higher tariffs such as the EU or China. "For all sectors, the opportunities of trading outside the USA present themselves - Canada and Mexico, for example, are vast countries with demand and resources." Separately, Staffordshire digger manufacturer JCB has confirmed it will double the size of a new factory currently under construction in Texas as the company says the tariffs will impact its business in the short-term. JCB has been manufacturing in the US for 50 years and in 2024 bought 400 acres of land in San Antonio after recognising the need to produce even more machines in North America. It currently has a plant in Georgia which it has operated for 25 years and employs around 1,000 people. The original plan for a 500,000 sq ft factory in San Antonio has now been revised up to one million sq ft at a cost of around £390 million. Production is due to start next year and it will employ up to 1,500 people. JCB chairman Anthony Bamford said: "JCB has been in business for 80 years this year and we are well accustomed to change. "The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the USA which has been an important market for JCB since we sold our first machine there in 1964." Chief executive Graeme Macdonald said: "In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.

Tech

Fears for Scunthorpe steelworks jobs as consultation launched on closure

2025-04-24 03:13:49

British Steel's Chinese owner Jingye is launching a consultation on the closing of its blast furnaces at Scunthorpe steelworks, sparking fears for thousands of jobs at the site. Unions the GMB, Community and Unite have called on the Government to help secure the future of British Steel, which has said the closure could come at a later date if an agreement is reached. Jingye, which pointed to the impact of tariffs among the reasons for the decision, says it has invested more than £1.2bn in British Steel since it took over in 2020 and has incurred losses of about £700,000 per day. It said: "Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel. The company had sought support from the UK Government for a major capital investment in two new electric arc furnaces. "However, following many months of negotiations, no agreement has been reached. As a result, the difficult decision has been made to consult with employees and to consider proposals to close the blast furnaces and steelmaking operations and reduce rolling mill capacity." British Steel chief executive Zengwei An said: "We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces. We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time." News of the consultation follows a plan put forward in February by Community which proposed to keep two blast furnaces at Scunthorpe while new, electric arc furnaces were built. The plan required £200m of Government support to offset carbon costs during the transition period. At the time, Community warned that if the Scunthorpe site was to close, the UK would become the only G7 country without domestic steelmaking capacity. The prompted worries over national security. Jingye said it had sought Government support for the major capital investment required for the electric arc furnaces but that months of negotiations had not yielded an agreement. Roy Rickhuss, Community general secretary, said: "This is a dark day for our steel industry and for our country. We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late. "Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low-carbon steelmaking if they can secure the backing of the Government. The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains. "Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened. This would be catastrophic at any time, let alone in the current era of geopolitical instability and volatility. "Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country. At this critical juncture, the Labour Government must do everything it can to secure the future of steelmaking at Scunthorpe - it would be unthinkable for them to let it die on their watch. "Labour has made important commitments to steelworkers, including setting aside £2.5bn towards supporting the steel sector with decarbonisation, and it is now time for Government to deploy these funds to protect the industry. "If the Government chooses to let Scunthorpe die it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is our only steelmaker than can produce the construction steels the country needs for our roads, railways, schools and hospitals."

Tech

Packaging firm bought by Coral Products in £500,000 deal with 55 jobs saved

2025-04-24 03:13:49

A packaging firm that makes plastic films for supermarkets and the food industry has been bought from its administrators by Manchester’s Coral Products, saving 55 jobs. Plastic and packaging specialist Coral, of Wythenshawe, has agreed to buy the business and assets of Arrow Film Converters from its administrators for £502,899 in cash, through its wholly owned subsidiary Film & Foil Solutions. Coral said it had made an initial cash payment of £202,899, with the outstanding balance to be settled within 14 days following completion. The group said: “The cash payments have been funded without any increase to existing group facilities". Coral’s Film & Foil arm has also agreed to a six-month licence to occupy Arrow’s facility in Castleford, West Yorkshire, as it negotiates a long-term agreement. It has also taken on Arrow’s 55 staff and plans to run the business as a going concern, and has also acquired Arrow’s assets including flexographic printing machines, laminators, and slitting and punching facilities. Arrow is an approved supplier to UK supermarkets. It reported sales of £12.5m in the year to January 2022, £17.9m in the 18 months to July 2023 and current sales demand of around £1m per month. Joe Grimmond, Coral’s non-executive chairman, said "This acquisition propels Film & Foil into the front line of specialist flexible packaging and provides Coral Products plc with capacity toward its medium-term goal of £50 million of production availability."

Tech

60 jobs at Cornwall dairy factory under threat

2025-04-24 03:13:49

A major UK cheddar cheese supplier is considering axing some 60 roles at its dairy factory in Cornwall. Saputo Dairy UK, which manufactures brands such as Cathedral City and Wensleydale, is looking to reduce its workforce by 80, with the majority of jobs being cut at Davidstow Creamery, near Camelford. The company told Business Live it was proposing to stop making a number of ingredients for the baby formula market and instead return to producing sweet whey powder. The proposed job cuts will have no impact on the supplying farms or cheese production, it added. "We will consequently be entering into a period of consultation with a group of employees regarding these proposed changes," a spokesperson said. "Market conditions are such that we are having to take difficult, but decisive, actions to simplify the business and introduce meaningful efficiencies to ensure we are best placed for the future. "We will ensure that all employees who may be impacted by this proposal are well supported." Saputo Dairy UK has manufactured ingredients for the infant formula market since 2013, but said on Thursday (April 3) that demographic shifts and changes in demand for different whey formats mean it was no longer in the company's "best economic interests" to continue servicing that market. The changes are expected to be completed by the end of September 2025. Dairy Crest was acquired by Saputo, one of the top dairy processors in the world, in 2019 and rebranded as Saputo Dairy UK. In 2021, Saputo snapped up Wensleydale Creamery, which manufactures, blends, markets and distributes a variety of specialty and regional cheeses, including Yorkshire Wensleydale cheese. In 2022, the company launched Cathedral City Plant Based - a dairy-free alternative to cheese.

Tech

Manufacturer celebrates 'significant milestone' with French Connection deal

2025-04-24 03:13:49

A Birmingham manufacturer has secured an exclusive supply deal with one of the UK's most-famous fashion brands. Dalian Talent has signed a five-year partnership with French Connection to supply its physical and online stores with licensed candles and home fragrances. Dalian, which is based in Kings Heath, called the deal "a significant milestone" in the company's 27-year history. The business makes candles for both private label and brand licensing for home fragrance, candle-related home furnishings and personal care products. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. French Connection enlisted the firm to expand its home fragrance category. The debut collection is being sold across the UK, Europe, India, America and the Middle East, as well as through digital channels, and features eight ranges and gift sets. The products are made using shea butter, harvested from trees in West Africa. The tie up has also seen the French Connection candles listed by high street fashion staple Next and on its website. Dalian's chief executive Hamish Morjaria said: "The development of the French Connection home fragrance range was a deeply collaborative process. "We worked closely with its design team to ensure the collection authentically reflected the brand's values, aesthetics and emerging trends….bringing the first collection to market in just six months." French Connection's chief executive Apinder Ghura added: "We are delighted to partner with Dalian Talent Group on this exciting venture. "We look forward to building on this momentum in the years ahead."

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Jaguar Land Rover reveals scale of Donald Trump's tariffs with US sales figures

2025-04-24 03:13:49

The impact of Donald Trump's tariffs on Jaguar Land Rover has been brought to light as the luxury car manufacturer detailed its vehicle exports to the US for the first quarter of 2025. The Coventry -based automotive giant reported a 14.4% increase in wholesale volumes in North America during its fourth quarter, as reported by City AM. This information comes following Jaguar Land Rover's announcement over the weekend that it will "pause" shipments to the US while it adjusts to "address the new trading terms" that have arisen as a result of Donald Trump's tariffs. The US administration enforced a 25% tariff on all foreign cars starting Thursday, complemented by a broader "baseline" tariff of 10% on goods imported globally which commenced on Saturday morning. In a statement issued on Saturday, a spokesperson for Jaguar Land Rover commented: "The USA is an important market for Jaguar Land Rover's luxury brands." They added, referencing their response to the tariffs: "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." The details of US wholesale figures come ahead of Jaguar Land Rover releasing a comprehensive set of data before its full-year results for the 12 months up to the end of March 2025, which are expected to be announced in May. In its most recent quarter, the group's wholesale volumes, excluding the Chery Jaguar Land Rover China joint venture, reached 111,413 vehicles. This represents a 6.7% increase compared to the previous three months and a 1.1% rise year on year. When compared to the previous year, wholesale volumes in Europe increased by 10.9%, while in the UK they remained flat at 0.8%. However, the group experienced a significant 29.4% decline in China, and overseas sales fell by 8.1%. Retail sales for the fourth quarter, including the Chery Jaguar Land Rover China joint venture, totalled 108,232 vehicles. This is a decrease of 5.1% compared to the same quarter last year but an increase of 1.8% compared to the preceding three months.

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Aston Martin to pay top bosses more than peers after struggling to attract talent

2025-04-24 03:13:49

Aston Martin is set to outstrip its FTSE 250 counterparts by offering higher remuneration packages to its top executives, following difficulties in attracting high-calibre talent in recent years. The luxury car manufacturer, based in Warwickshire, is considering boosting the bonus potential for its CEO and CFO from 200% to 250% of their respective salaries, as reported by City AM. In a statement, Aston Martin noted that "while this would position annual bonus ahead of UK FTSE 250 practice, it would take our annual bonus policy to median within our identified global luxury peer group and lower quartile against our automotive peers." The company conceded that it has faced challenges in talent acquisition "due to the lack of competitiveness of our reward packages" under its latest remuneration policy. It further stated that the enhanced bonus opportunity would "continue to be linked to stretching targets, ensuring maximum payouts are only received for exceptional performance across a range of KPIs [key performance indicators]." Additionally, Aston Martin is proposing a new hybrid long-term incentive plan structure which would merge existing performance share awards with new restricted shares "to better support the delivery of our strategy." CEO Adrian Hallmark, who took the reins at Aston Martin in September last year after serving as chairman and CEO of luxury car maker Bentley, is among those set to benefit from these changes. Prior to Hallmark's appointment, Aston Martin was led by CEO Amedeo Felisa since 2022 under the watchful eye of executive chairman Lawrence Stroll. Hallmark's remuneration for his initial tenure at Aston Martin amounted to £1m, comprising a pro-rata salary of £333,000, an annual bonus of £600,000, and additional benefits and pension contributions. This financial disclosure follows a report by City AM in February revealing that Aston Martin was set to eliminate 170 jobs as part of a cost-cutting strategy. The job cuts, representing five per cent of its global workforce, are expected to yield savings of about £25m. Concurrently, Aston Martin reported an annual loss of £289.1m and a three per cent decline in revenue to £1.58bn. The company's debt escalated by 43 per cent to £1.16bn in 2024, with shares dropping by roughly a third. In the annual report, Anne Stevens, the chair of the remuneration committee, wrote: "While our 2022 policy was designed with good flexibility and has proved broadly fit-for-purpose, we have faced challenges that the proposed 2025 policy aims to address." "Aston Martin, while a UK-headquartered and FTSE-listed company, is a global business and sources executive talent from global luxury and automotive companies." "Over 80 per cent of cars we wholesaled in 2024 were to our regions outside of the UK, and our executive directors frequently visit the regions and must navigate regulatory and political challenges across global jurisdictions." She continued: "The committee avoids targeting the median of any single peer group and would not rely on benchmark data for policy changes, instead we take a holistic view of UK and global reward practices." "While we have been able to secure recent key hires, we have faced challenges during the recruitment process, due to the lack of competitiveness of our reward packages, particularly our incentive opportunities compared to global luxury and automotive peers (where we have recruited talent from)." "A further reference point considered was the history of realised pay at Aston Martin since 2021." "While outcomes of our incentives over recent years have reflected the ambitious nature of the company and industry-wide challenges and therefore the shareholder experience, the committee is mindful that incentive outcomes have not reflected the significant efforts of the team." "This has resulted in our executive directors being underpaid relative to other senior leaders at Aston Martin, who receive a portion of their remuneration in restricted shares. "While incentivising performance remains our priority, we believe we would benefit from a revised incentive approach, to better align the senior team and to reflect practice of our global peers."

Tech

Cycling accessories firm secures funding to expand Bristol HQ

2025-04-24 03:13:49

A Bristol cycling accessories designer and manufacturer has secured £600,000 to fuel its expansion plans. Tailfin, on Cumberland Road, is part of the rapidly-growing 'bikepacking' market - an adventure-focused cycling discipline where cyclists carry all necessary gear on their bikes. The company was founded a decade ago by Nick Broadbent, a mechanical engineer and product designer, and initially focused on rack and pannier accessories. Today, Tailfin has more than 12 product lines distributed from warehouses in the Netherlands, US, and Europe. The business will use the additional working capital from the British Business Bank's South West Investment Fund, and delivered by fund manager FW Capital, to broaden its product range, it said. Significant investment is also being directed towards expanding the company's Bristol headquarters, creating a state-of-the-art R&D studio with new equipment, specialised tools, and enhanced prototyping capabilities. Extra funds will also be used to invest in high-quality video production equipment and a dedicated studio space, Tailfin added. Mr Broadbent said: “This investment marks a significant milestone for Tailfin, enabling us to push the boundaries of design and technology further and to enhance our robust intellectual property portfolio, which already includes over 20 patents. "Crucially, it also supports our growth strategy by enabling us to expand both our innovative product lines and our talented team of passionate cycling enthusiasts.” Tailfin's Bristol headquarters houses a team of 25 designers, marketers, and operational specialists, collaborating with specialist manufacturing partners across China, Vietnam, and Taiwan. Jordan Berg represented FW Capital and led the deal. He said: “Tailfin is a premium quality brand in the bikepacking world that have created an innovative range of products that appeal to all cyclists from commuters, adventure cyclists to world-class ultra endurance athletes. Nick’s vision to bring his products to market is very impressive and the success Tailfin has enjoyed is testament to that." The South West Investment Fund provides loans from £25k to £2m and equity investment up to £5m to help small and medium-sized businesses to start up and scale up. Fund manager FW Capital provides debt finance using the South West Investment Fund to businesses in Bristol, Gloucestershire, North and North East Somerset and Wiltshire. Lizzy Upton from the British Business Bank added: “The South West Investment Fund was created to support ambitious businesses like Tailfin, helping them scale, innovate, and strengthen their market position."