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Motor industry and government in £1BILLION automobile manufacturing investment

By Kyle Linsay
Friday, July 12, 2013 - 11:35

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CarManufacturing

BOUNTY: £1billion to be invested in UK

More than £1billion will be pumped into the UK vehicle and component manufacturing sector by 2023, through a joint-motor industry and government growth strategy.

The bounty will support multi-billion pound investments announced in the last few years by global automotive companies to boost production capacity and develop new technologies and models.

Developed under Automotive Council guidance, the industry and government will fund and resource investments in a range of projects.

These include 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 encouragement of the UK as a low emission vehicle lead market.

Mike Baunton, Interim Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said: “The motor industry is a major contributor to the UK economy and has been increasing that contribution in a challenging economic environment.

“In partnership with government, we have now developed a roadmap to secure further long-term growth that is detailed in the strategy document launched today.

“Our goals are to grow vehicle production and component supply with more investment, jobs and advanced technology developed in the UK.

“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.”

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 over the next five years.
  • 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.

Meanwhile, Nissan have welcomed the new UK Automotive Industrial Strategy.

John Martin, Senior Vice President for Manufacturing, Purchasing and Supply Chain Management in Europe at Nissan, said: “Nissan was involved with the UK Government in developing the UK Automotive Industrial Strategy.

“As the largest car manufacturer in the history of the UK motor industry we are fully committed to supporting its implementation.

“The leadership and support from the government at all levels in developing the strategy has been fantastic and has really helped to understand and prioritise the long term issues that the nation and the industry have to tackle to maintain the UK’s leadership in vehicle and engine manufacturing.

“The automotive strategy follows hot on the heels of the recently launched Aerospace Industrial Strategy.

“Both are unique within Europe and both are a great example of industry and government working together to address common issues and foster growth.

“Over the next two years Nissan will have invested more than £1billion in the UK to support our innovative and exciting new model range including Qashqai, Juke, Note and the 100% electric Nissan LEAF.

“Our workforce recently went over 6,000 for the very first time to support a planned increased in production to beyond 550,000 cars per year in the near future.”

Nissan are represented on the Automotive Council by John Martin, Nissan’s Senior Vice President for Manufacturing, Purchasing and Supply Chain Management in Europe, and by Jerry Hardcastle OBE, Global Chief Marketability Engineer.

Image courtesy of Ben Sutherland, with thanks.

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  • Dr david Hill says...July 12, 2013 (22:30)

    Over the last forty-five years I have witnesses the relative decline of the living standards of the vast majority of the people living in Britain. This has been due to a combination of things but primarily it has been the bad decision-making of successive governments and the lack of a coherent economic strategy based on the ‘inclusive’ exploitation of innovation and creativity. What has been the case is that the ‘elitist’ system has run riot excluding totally the world-leading thinking and inventiveness of the British people, something that Japan and Germany have determined is the best in the world by far and commands 53% of the why the modern world is as it is today. For this has and is totally dormant in the UK and where this prerequisite for economic dynamism has not been ‘tapped’ into to date by government. Indeed this pre-eminent of economic catalysts has not been allowed into the system since Britain ruled the world in trade and unleashed the ‘Industrial Revolution’ some 150 years ago. What successive governments have forgot is that it was our great inventors and engineers who at the fundamental level made our nation into the
    most powerful economic nation in the world and where these individuals in the main were independent thinkers drawn from what we call the common class (or woman), not the establishment classes. Indeed this total lack of involvement through inept government policy has meant that we have not created any new technological industries of major significance ourselves to provide jobs for our people and the constant revitalisation of the nation’s wealth. Get this world-changing thinking back into our mainstream economic policy and then we would see the re-emergence of a new Great Britain. For presently we have the university-corporate research and business model that has failed the nation miserably and where the reason for this is that it should be the inventor-engineer driven university-business model. Therefore not until we have this in place and the vital ‘missing-link’ included again will the nation rise from the ashes to economic and debt salvation – this currently projected by PwC in 2015 to be £10.2 trillion and where the total value of the UK according to the ONS is only £6.8 trillion; a shortfall of nearly £4 trillion. That is how bad things are and why we have to change our thinking to a fully-inclusive one where all the creative thinking of the British people is incorporated and not a mere small percentage of elites who have consistently got it so horribly wrong.HS2 is just one example of this where the thinking is all wrong in Britain today at the top and where there will be no significant jobs created after it has been completed for a taxpayer’s investment of £43 billion and counting.

    Dr David Hill
    Chief Executive
    World Innovation Foundation