Manufacturers face more production headaches

Richard Peberdy, UK head of automotive at KPMG, said:

“Manufacturers face more production headaches as the surge in gas prices adds to the operational cost burden driven by rising material costs.

“The continued momentum behind electric vehicle (EV) production is positive and the announcement for the planned gigafactory expansion in Sunderland will inject further confidence into the market. That said, electric will soon face increasing competition for investment as interest grows in exploring other alternative fuel options, including hydrogen and synthetics.

“Arm-twisting at COP26’s transport negotiations could see some nations bring forward effective bans on the sale of cars with internal combustion engines, which serve to increase pressure on carmakers and their supply chains globally to step-up capacity for producing zero-emission vehicles.”

ENDS

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About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax, and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.