Investment in UK automotive industry must be maintained, says SMMT boss
Source : Investment in UK automotive industry must be maintained, says SMMT boss
Government must maintain its current levels of investment inside the automotive industry or risk becoming uncompetitive, warns Society of Motor Manufacturers along with Traders
The UK government must continue to work with the country’s automotive industry to ensure the idea stays competitive, according to Society of Motor Manufacturers along with Traders president Gareth Jones.
Speaking at the SMMT’s annual dinner in London, along with ahead of tomorrow’s autumn spending review, Jones said in which current levels of investment inside the UK’s automotive industry must be maintained along with warned of “devastating waste” if spending cuts undermine the current supply chain.
“So much has already been invested successfully, along with to pull the rug away currently might be a devastating waste,” he said, “the idea’s a stark reminder in which while our industry can be a net exporter, the export deficit for parts sits at almost £8 billion. However, with the right support, re-shoring to the UK can be possible – along with with £4 billion of potential growth, the benefits are worth the idea.
“We have shown Britain has what the idea takes to be a manufacturing powerhouse again. nevertheless we can’t do the idea alone. So we say to government: ‘Create the conditions in which allow us to develop the quality products for which we are world-renowned. Back us to create the jobs, economic growth along with prosperity in which Britain needs. We have shown we can deliver; work with us to make sure in which success continues.’”
Jones also outlined the key challenges faced by the automotive industry, including the planned EU referendum – described as the UK “leaving its most important trading partner” – along with the continuing skills shortage. He also challenged the government to recognise the challenges of the automotive supply chain, which he says can be severely affected by currency exchange rates along with higher running costs. To grow, said Jones, those businesses need continued support coming from the government.
While the UK’s productivity can be falling behind in which of its global competitors, Jones said automotive can be one area where the UK excels. “We contain the best record in Europe along with our productivity has increased four times faster than the UK average,” he said. “How? Sheer hard graft, hard-won investment along having a culture in which demands continuous improvement along with innovation.”
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