Automotive Transformation Fund critical to navigating ‘perfect storm’
Millions of pounds of investment and thousands of jobs will depend on quick rollout of the Automotive Transformation Fund, according to Society of Motor Manufacturers and Traders.
It has said the industry is facing a ‘perfect storm’ of challenges, and urged government to prioritise automotive in its forthcoming industrial and trade strategies in order to protect jobs, secure investment, and accelerate the country’s move towards net zero.
The SMMT has issued the warning after production dipped 17.7% in January.
SMMT CEO Mike Hawes said: “Automotive manufacturers are facing a perfect storm of international trade uncertainty, challenging manufacturing conditions and a global EV transition that’s proving tougher than expected – issues that affect the UK amid key model changeovers on factory lines.
“It’s not unexpected, therefore, that the latest SMMT data showed a 17.7% dip in UK vehicle production in January, in comparison with a strong performance in the same month last year. Manufacturers are doing all they can to keep production plans on track, with billions of pounds in investment and thousands of jobs at stake.”
Automotive Transformation Fund
Hawes continued: “Support is needed, and government can provide it with its forthcoming industrial and trade strategies, which must prioritise our industry and ensure the timely rollout of the £2bn promised with the Automotive Transformation Fund.
“Delivery of these strategies will also support Britain’s world-leading commitment to decarbonise road transport which, as the Committee for Climate Change’s (CCC) latest carbon budget made clear, is the single most important factor in delivering national ambition.
“The CCC report actually forecasts EV take up ahead of the ZEV mandated levels, something that will only happen if we have bold incentives to encourage demand, more affordable electricity, significant additional investment in infrastructure, and a clear and consistent message that buying an electric vehicle is the right thing to do.
“Increased demand would also help our manufacturing competitiveness, realising planned investment and, hopefully, attracting further commitments across both vehicle production and, especially, the supply chain.”
