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Nissan announced a non‑binding agreement to explore contract manufacturing for Chery International UK at its Sunderland plant, a step that could secure employment at the country’s largest car factory.Nissan Signs Non‑Binding Agreement to Build Chery VehiclesThe Japanese automaker confirmed that discussions are ongoing to produce Chery‑branded models on production line 1 in Sunderland. The agreement is non‑binding, with final terms to be negotiated in the coming months.Projected Timeline and Production CapacityTarget start: 2027 financial year.Location: Sunderland plant, line 1.Workforce: Approximately 6,000 employees at the site.Current output: Qashqai, Juke, and Leaf models.The plant recently consolidated to a single line, freeing capacity for a new Chinese entrant without cutting jobs.Strategic Implications for the UK Automotive SectorPartnering with Chery, which has quickly risen in the UK market with models like the Jaecoo 7 PHEV, could bolster Sunderland’s utilisation rates and offset the broader decline in European car sales. The deal also aligns with Chery’s ambition to become a top‑three manufacturer in Britain and its recent investment in a UK R&D; hub in Liverpool.Future Outlook: Potential Shifts in UK Car ManufacturingIf the partnership proceeds, Nissan may expand its hybrid or electric portfolio at Sunderland, though details remain undisclosed. The arrangement could set a precedent for further Chinese‑European collaborations, while the British government continues to explore similar partnerships, such as the speculative involvement of Jaguar Land Rover.

The Growing Threat of Business Crime in the UKUK business leaders are issuing a stark warning that crime has become an increasingly "serious barrier" to growing Britain's economy, with two-fifths of companies experiencing some form of criminal activity in the past year. The British Chambers of Commerce (BCC) is calling on the government to provide "a step change in the support businesses can count on" as businesses face rising levels of theft, fraud, and cyber-attacks.Rising Crime Statistics Across Business SectorsThe BCC's research, based on a survey of 1,411 firms, reveals that crime against businesses is widespread and growing. Key findings include:Two-fifths of companies experienced some form of crime in the past yearOne-fifth of companies faced fraud or scams21% experienced cyber-attacks50% of manufacturing companies reported business crime, making it the hardest hit sectorLarger companies are more vulnerable, with 58% of firms employing more than 250 people experiencing crime, compared to 32% of microbusinessesRetail businesses have been particularly affected by shoplifting, with police-recorded incidents rising 20% year on year to reach 516,971 offences in the year to December 2024, exceeding 530,000 by March 2025.Financial Impact on Major CompaniesThe financial consequences of business crime have been substantial, with several high-profile companies suffering significant losses. The hack of Jaguar Land Rover alone is estimated to have cost the UK economy £1.9bn, potentially making it the most costly cyber-attack in British history. Marks & Spencer took a £324m hit to profits after being forced to close its website to orders for more than six weeks following a damaging cyber-attack. Other major companies affected include the Co-op and Booking.com.Industry-Wide Consequences and Economic ImpactCrime against businesses is creating "structural barriers to growth" according to the BCC, forcing companies to divert crucial time and money away from expansion and investment. The impact spans across sectors, from retail and manufacturing to tradespeople experiencing surging tool thefts that threaten their ability to operate. As Ellis Shelton, a policy manager at the BCC, noted, "Bosses are being forced to divert crucial time and money to tackling this anchor on growth."The rising sophistication of criminal activities, particularly in cybercrime and fraud, has left many businesses struggling to keep pace with security measures, especially small and medium-sized enterprises with limited resources.Call for Government Action and Future OutlookIn response to the growing threat, the BCC has called for several specific measures from the government:Creation of a cyber-attack reporting system for companiesEstablishment of regional business crime hubs bringing together police and business crime reduction partnershipsExpansion of cyber and fraud resilience support for small and medium-sized businessesMore incentives for companies to invest in securityWithout decisive action, business crime is likely to continue hampering UK economic growth, with the most sophisticated threats potentially targeting larger companies with greater resources. The BCC's warning suggests that addressing business crime must become a priority for policymakers if the UK is to overcome this "serious barrier" to economic expansion.

The Defense Sector Expansion by Automotive GiantsJaguar Land Rover and General Motors are considering an expansion into UK defence via a £900m military contract, as carmakers seek to exploit a spending boom by Nato countries racing to rearm. The manufacturers are among a group of automotive firms vying to make thousands of 4x4s for the armed forces to replace an ageing fleet of Land Rovers that have been out of production since 2016.Technical Specifications and Strategic PartnershipsThe new trucks will be used across the army, the Royal Navy and the Royal Air Force for reconnaissance and patrol missions as well as in logistics, with the first deliveries expected in 2030. JLR would be the most high-profile UK carmaker to turn to the newly booming defence sector as manufacturers grapple with a transition to electric vehicles and rising competition from Chinese rivals.General Motors, the US automotive company, is tabling a bid in partnership with BAE Systems, the British defence company, and NP Aerospace, the Coventry-based manufacturer that maintains the existing Land Rover fleet. GM does not have a UK factory and its bid would involve Chevrolet-based trucks produced in the US being shipped to Britain for military modifications.Financial Implications of the Defense ContractThe MoD contract covers an initial tranche of about 3,000 vehicles ranging from patrol and logistics trucks to armoured reconnaissance models, but more are expected that will eventually replace the combined 7,800 Land Rovers and Austrian-made Pinzgauer trucks now used across the military. Defense spending across Europe, including Britain, rose 14% last year to $864bn (£638bn), the sharpest annual increase since the end of the cold war, according to the Stockholm International Peace Research Institute.Industry Transformation Amid Global ShiftsIn Germany, Volkswagen has been in talks to switch production at one of its factories from cars to heavy-duty trucks that carry anti-missile systems for the maker of Israel's Iron Dome air defence system. Renault recently said it was repurposing part of its Le Mans chassis plant to make drones for the French government. Last year, Keir Starmer committed to spending 5% of GDP on defence by 2035, amid a rise in military spending across Nato that has made government contracts an increasingly attractive alternative for carmakers facing flagging profits.Future Outlook for Defense Vehicle ManufacturingCompanies have yet to be told how many vehicles they will need to supply. An industry source said the delay was linked to the late release of the defence investment plan, Britain's blueprint for military spending over the next five years, which was initially supposed to be published last autumn but is still being finalised. Other bidders include Ineos (partnering with SMT), Babcock (using modified Toyota), Rheinmetall (with Mercedes 4x4), and General Dynamics (with Ford pickup).A government spokesperson said: "We are committed to ensuring British industry plays a central role in delivering the next generation of light mobility vehicles expected to be in the hands of soldiers by 2030."

Profit Collapse Highlights JLR’s Turbulent YearJaguar Land Rover, Britain’s largest carmaker, posted an annual profit of £14m before tax and exceptional items for the year to March 2026, a decline of more than 99% from the £2.5bn recorded the previous year.US Tariffs and August Cyber‑Attack Cripple ProductionThe downturn was driven by two major shocks:US automotive tariffs raised by former President Donald Trump to 25% before a deal reduced them to 10%, slashing demand for JLR’s luxury models in its key export market.A sophisticated cyber‑attack on 31 August forced the shutdown of most factory systems for weeks, extending disruption into the autumn.Both events hit revenue, which fell to £22.9bn, a drop of over 20% year‑on‑year.Financial Fallout: £14m Profit vs £2.5bn Prior YearKey financial metrics illustrate the severity of the hit:Profit before tax and exceptional items: £14m (2026) vs £2.5bn (2025).Cash burn: £2.2bn spent on the cyber‑attack response and new model investments.Liquidity: £6.9bn of available cash remains to support operations.Broader Implications for UK Automotive SectorThe episode highlights systemic risks for the UK auto industry:Reliance on the US market makes manufacturers vulnerable to sudden policy shifts.Increasing cyber‑threats expose the fragility of highly automated production lines.Intensifying competition in China adds pressure on export‑oriented brands.JLR’s 33,000‑strong UK workforce and its plants in Solihull, West Midlands, and Halewood, Merseyside, face heightened scrutiny from investors and policymakers.Outlook: New EV Launches and Recovery StrategyNew chief executive PB Balaji, appointed weeks after the hack, signalled a turnaround plan:Launch of the delayed Range Rover Electric (now slated for March 2027).Introduction of smaller electric SUVs and the new Jaguar EV, dubbed Type 01.Focus on restoring production levels, which rebounded in the fourth quarter.While short‑term challenges remain, JLR’s cash cushion and upcoming electric models position it to regain market confidence and mitigate future geopolitical or cyber disruptions.

Richard Horne, CEO of the National Cyber Security Centre (NCSC), has issued a stark warning that the UK faces a potential surge in 'hacktivist attacks at scale' if the nation enters a conflict zone. Speaking at the CyberUK conference, Horne drew parallels between these future attacks and recent high-profile ransomware incidents, but with a critical distinction: victims would have no option to pay a ransom to recover their systems. Key Developments NCSC Chief's Warning: Horne stated that if the UK is embroiled in conflict, it will face hacktivist attacks with similar sophistication to ransomware, but without the 'pay-to-play' solution. Rising Nation-State Threats: Horne noted that nation states now account for the most significant incidents handled by the NCSC. Recent High-Profile Targets: Attacks on Marks & Spencer and Jaguar Land Rover (JLR) have demonstrated the vulnerability of critical sectors. AI as a Double-Edged Sword: The emergence of frontier AI models like 'Mythos' accelerates the discovery of vulnerabilities, potentially lowering the barrier for sophisticated cyber warfare. Data & Market Impact The economic toll of cyberattacks is becoming increasingly quantifiable. The recent attack on Jaguar Land Rover (JLR) is estimated to have cost the UK economy £19 billion by disrupting car production. This figure underscores the systemic risk that 'hacktivist' or state-sponsored attacks pose to national GDP and supply chains, moving beyond isolated IT failures to macroeconomic shocks. Why This Matters For businesses and critical infrastructure, the shift from ransomware to hacktivism in a conflict scenario changes the risk calculus entirely. Unlike ransomware, where payment is a viable (though controversial) mitigation strategy, hacktivist attacks often aim to destroy data or cause reputational damage with no path to recovery. This forces a fundamental restructuring of corporate cybersecurity strategies, requiring a move from reactive patching to proactive, 'defense-in-depth' architectures. Expert Insight Horne’s warning aligns with the broader geopolitical reality described by MI6 chief Blaise Metreweli, who previously characterized the UK as being in a 'space between peace and war.' The 'perfect storm' Horne describes—rapid technological change combined with rising geopolitical tensions—suggests that cyberspace is no longer a peripheral battlefield but a central theater of operations. The integration of frontier AI into cyber warfare means that the speed of vulnerability discovery has outpaced the speed of traditional patching, creating a dangerous lag in global defenses. What Happens Next We can expect a rapid acceleration in the adoption of AI-driven defense mechanisms. Organizations will need to move beyond basic compliance and embed cybersecurity into their core business missions. Furthermore, as AI lowers the technical barrier for attackers, we will likely see a rise in attacks on legacy systems that have not been updated, making the 'digital divide' between modernized and outdated firms a critical vulnerability.

The UK economy demonstrated resilience with a 0.5% growth in February, surpassing the 0.1% forecast by economists. This growth was primarily fueled by a strong performance from the services sector and manufacturing, both of which posted 0.5% growth, and a recovery in construction output, which was up 1%.The Office for National Statistics (ONS) reported that the economy had been gaining momentum before the Iran war dashed hopes of recovery. The growth in the three months to February was 0.5%, up from 0.3% in the three months to January, indicating strengthening growth.Grant Fitzner, the ONS chief economist, noted that growth was driven by broad-based increases across services, with wholesaling, market research, hospitality, and publishing performing well. The recovery of Jaguar Land Rover from a cyber-attack also contributed to the improving three-monthly picture.However, economists have downgraded forecasts for UK growth in 2026 due to soaring oil and gas prices resulting from the Iran war. Business and consumer confidence have declined sharply, and investors believe interest rates may have to rise to restrain the inflationary impact of the war.Martin Beck, chief economist at WPI Strategy, warned that February's growth might be the calm before the storm, with the conflict in the Middle East likely to drag overall Q1 growth down. Suren Thiru, chief economist at the ICAEW, also predicted that March would see a decline in economic activity due to skyrocketing fuel prices and supply chain chaos.

The UK government has pledged £380 million to accelerate the build‑out of a new battery factory in Somerset that will supply Jaguar Land Rover (JLR) with cells for its forthcoming electric Range Rover and Jaguar models. The plant, operated by Tata’s battery subsidiary Agratas, was highlighted during a site visit by Business Secretary Peter Kyle, who emphasized the grant’s role in safeguarding jobs and driving economic growth. When fully operational, the gigafactory is projected to employ 4,200 workers and deliver up to 40 GWh of battery capacity annually—enough for hundreds of thousands of electric vehicles. It will become the UK’s second high‑volume battery facility after the Chinese‑owned AESC plant in Sunderland. Construction remains in its early stages, with only a steel frame erected so far. Although the original timetable targeted production start‑up in 2026, delays have pushed the expected commencement to the end of 2027. Agratas has reduced the footprint of the first building but claims the change reflects more efficient process design rather than a cut‑back in output. JLR, the nation’s largest automotive employer, had planned to launch its electric Range Rover in 2025, but the debut has slipped to 2026 and the vehicle is still not on sale. The postponement follows a broader trend of EV manufacturers worldwide scaling back or postponing battery projects after over‑optimistic forecasts of rapid consumer migration from petrol. Recent spikes in petrol prices—spurred by geopolitical tensions linked to Donald Trump’s war in Iran—could make electric cars more appealing, potentially justifying the sizeable capital commitments required for a transition to EV production. Until the Somerset facility becomes operational, JLR will continue to source batteries from AESC. That arrangement was confirmed last year by investment bank Société Générale, though references to JLR have since been removed from public statements. In addition to the battery grant, Tata previously secured a £500 million pledge to modernise its Welsh steelworks with electric arc furnaces, underscoring the government’s broader push for greener industrial capacity. Peter Kyle said the investment, alongside other automotive research initiatives announced on the same day, would “boost economic growth, secure jobs and put more money in people’s pockets.” He added that the UK’s “modern industrial strategy” provides the stability needed for long‑term planning. Earl Wiggins, Agratas’s vice‑president for UK manufacturing, welcomed the funding, noting it will enable the company to “deliver net‑zero goals and strengthen the UK’s position as a global leader in battery manufacturing.” He projected that over 2,200 staff would be on‑site within the next year, with further growth thereafter.

European carmaker Stellantis has issued a recall for 44,000 vehicles in the UK due to a fault that could result in the cars catching fire. The issue affects certain models across its Peugeot, Citroën, DS Automobiles, Vauxhall, Lancia, Alfa Romeo, Jeep, and Fiat brands, produced between 2023 and 2026.The fault is related to a lack of clearance between the gas filter pipe and a component of the belt starter generator, which could cause water to leak into the engine bay during wet driving conditions. This creates a potential risk of fire in the engine.In response, Stellantis will immediately contact affected car owners to schedule a free appointment with their dealer. This recall comes as the company faces challenges, including a €22bn charge and the sale of a stake in its battery joint venture due to slower-than-expected growth in electric vehicles.The recall is a significant setback for Stellantis, which had previously planned to launch an electric truck, the Ram 1500 BEV. Meanwhile, sales of electric vehicles in Europe have soared, but demand in the US has collapsed following the withdrawal of a consumer tax credit.In contrast, rival Jaguar Land Rover (JLR) reported a recovery in sales over the past quarter, with a 61.1% jump in sales to 95,300 vehicles. However, quarterly sales were still down 14.5% compared to the same period a year earlier, largely due to a cyber-attack that halted production.