UK automotive industry agrees £1 billion investment plan
The UK government has agreed to match automotive industry investment of £500 million, resulting in a £1 billion 10 year automotive investment plant designed to secure the growth and development of its vehicle and component manufacturing sector.
This new funding supports multi-billion pound investments announced in the last few years by global automotive companies to boost production levels and develop new technologies and models. And when the term “automotive industry” is used it includes original equipment components such as tyres, with the full report pointing out tyre plants in Northern Ireland and Scotland as the wider British impact the investment programme is likely to have.
Developed under Automotive Council guidance, industry and government will fund and resource investments in a range of projects including the creation of an Advanced Propulsion Centre, thousands of new motor industry apprenticeships and the creation of an Automotive Investment Organisation. The development of the strategy also sees the provision of finance for tooling investments in the supply chain, and a renewed commitment to encourage the UK as a lead market in the production and sale of low emission vehicles.
The key elements of the strategy include:
• Technology – the creation of an Advanced Propulsion Centre to support and enhance the UK’s expertise in research and development.
• Inward investment – the creation of the Automotive Investment Organisation to drive UK investment by global automotive component companies.
• Skills – an industry framework for skills and a skills roadmap, including the creation of 7,600 apprenticeships and 1,700 graduate opportunities in the automotive industry.
• Supply chain – driving growth and competitiveness including creating a framework with suppliers, vehicle manufacturers and banking organisations to solve the problem of financing tooling investment.
• Low carbon – financial support to encourage consumers into lower emission vehicles, and to grow investment in the manufacture of low and ultra-low emissions vehicles and components.
• Business environment – establishing better cross-government relationships by including HM Treasury on the Automotive Council to ensure the UK remains an attractive place to invest.
“The Automotive Council is an exemplar of industry and government working together to build long-term success and it is through the Council that we will implement the roadmap. I am confident that the strategy and the joint investment by government and the industry will make the UK an even more attractive place to design, build and sell automotive components and vehicles”, said Mike Baunton, SMMT Interim chief executive.
The complete 87-page strategy document is available to download here.
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