autos

North East automotive body warns investment could be lost to overseas competitors without Government action – Business Live


The body representing North East automotive firms has called for a level playing field with other countries competing for sector investment.

North East Automotive Alliance boss Paul Butler said he echoed the recent comments of Unipart executive chairman John Neil, who revealed his 8,000-job firm was assessing whether to “pivot” to the US in the wake of “gaming changing” incentives offered by the US authorities. Mr Butler, who leads the body billed as the UK’s largest automotive cluster, representing more than 300 firms, called for the Government to step up or risk losing business.



He said: “I echo the thoughts of many others in the UK automotive sector, all we ask for is a level playing field with competition across the globe, particularly Europe. North East based multinationals compete internally for investment, without similar support the business case for investment does not stack up to that of our international competition and therefore investment will go to other non-UK plants and UK competitiveness declines. This is particularly important as when it comes to allocating supply contracts the UK subsidiaries cannot compete with their sister plants and therefore there is a danger that future business is lost to the UK.”

Read more: Turbo Power Systems uses £3.8m to launch ‘ultra rapid’ electric vehicle chargers for industry

The US Government’s $360bn Inflation Reduction Act offers significant subsidies and tax incentives to firms in the electric vehicle manufacturing space. And the EU’s proposed response to the move, Green Deal Industrial Plan, has also tried to entice producers by relaxing state aid rules.

Readers Also Like:  Data Collection and New Technology Bring ADAS Improvements - Transport Topics

Both moves have the potential to cause disruption to UK automotive manufacturing, of which the North East contributes 30% of all passenger vehicles made here. The region’s supply chain has battled against numerous headwinds in recent years, including semiconductor chip shortages, high energy prices and Covid disruption.

New figures for the first three months of year show a 6% increase in the number of cars built in the UK – a level still well below pre-pandemic levels. On the back of the data, Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “If British car manufacturing is to get back towards those levels, with all the economic benefits that brings, we need to match the best in global competitiveness. “That means driving down the high cost of UK energy, reforming business rates and vigorously promoting Britain globally to secure the investments essential to a zero-carbon automotive future.”

Readers Also Like:  TSA Offers Tips on Traveling With Small Children - HS Today - HSToday



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.