U.K. Auto Industry Hails Government Focus on Manufacturing
U.K. auto plants and facilities attracted more than £3.9 billion in international investment this year, leading to creation of about 7,500 new jobs and the safeguarding of 12,000 more.
The Society of Motor Manufacturers and Traders says the government is finally getting the message that support for manufacturing will drive U.K. economic growth.
SMMT President Nigel Stein tells industry figures and politicians at the organization’s annual dinner there is a continued shift in government attitude toward manufacturing.
Industry accolades for JLR’s Range_e concept vehicle.
“Policymakers are increasingly recognizing the economic importance of a strong manufacturing base and are working with us to make sure the U.K. can successfully compete globally,” Stein says.
“We have shown how an export-led industry such as our own can drive economic growth, but we must have the right environment in which to prosper.”
SMMT says in a statement that Stein recognizes the need for the country to attract global investment that secures the U.K. auto industry’s future and drives economic growth.
Stein, CEO of GKN Automotive, also calls for changes to capital allowances to boost development of small-to-medium manufacturing enterprises and the automotive supply chain in order to retain the largest possible share of investment value.
He deems the U.K. automotive industry in good health despite economic uncertainties, saying its future is bright despite challenges including stalled economic growth, high inflation and the ongoing debt crisis. All these inevitably impact consumer spending.
“So while our manufacturing output has continued to grow, U.K. vehicle sales remain weak, heading to 1.9 million units this year with little improvement expected next year,” Stein says.
“The outlook for vans, heavy trucks and buses is slightly better, with some confidence returning to the order books, but once again the outlook remains uncertain for 2012.”
Stein says he nevertheless is optimistic about the auto industry’s future because this year it attracted more than £3.9 billion ($6 billion) in international investment in U.K. plants and facilities.
This will lead to the creation of about 7,500 new jobs and the safeguarding of more than 12,000. Nine new models and three next-generation models are to be built soon in the U.K.
Three areas where Stein says investment must be encouraged are:
Research and development. Reforming the current R&D tax-credit regime would generate more investment, make incentives more visible and make the U.K. more competitive with overseas rivals.
Plant and equipment. Allowances for capital spending in the U.K. are among the lowest in the G20. “To grow and develop our supply chain, we must help SMEs to invest in plant, machinery and retooling.”
Skills training. “Skills are vital for a productive and globally competitive business, and government focus on skills development, ‘up-skilling’ the existing workforce and advanced apprenticeships must be supported,” Stein says.
At the annual dinner, SMMT announces its 2011 award for automotive innovation goes to Jaguar Land Rover for its prototype Range_e, the world’s first luxury plug-in hybrid electric 4x4 with an integrated V-6 diesel engine.
The Range_e beat off stiff competition from companies across the car, commercial-vehicle and supply-chain sectors to win SMMT’s second annual award recognizing the importance of R&D and the U.K.’s role in developing global automotive products.
SMMT CEO Paul Everitt, chair of the 5-strong judging panel, says JLR “has engineered and manufactured a highly efficient and technologically advanced prototype vehicle that clearly demonstrates industry’s commitment to lowering vehicle emissions and creating exciting products for demanding consumers.
“This award champions industry innovation – promoting cutting-edge automotive engineering and design that the U.K. is famed for around the world.”
The Range_e, unveiled at this year’s Geneva auto show, impressed judges with its four modes of operation, ability to deliver emissions of 89 g/km of carbon dioxide and driving range of more than 20 miles (32 km) in pure EV mode.
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