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UK Automotive Industry
18 September 2023
Lead MP
Sarah Jones
Debate Type
General Debate
Tags
Business & Trade
Other Contributors: 16
At a Glance
Sarah Jones raised concerns about uk automotive industry in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Ms Sarah Jones opened by highlighting the importance of the automotive sector to British manufacturing and criticised the government's lack of a clear industrial strategy, citing loss of output and jobs due to uncertainty. She emphasised that the industry needs certainty, clarity and action from the Government. She also highlighted Labour’s plan to support electric vehicle manufacturing and outlined steps to improve competitiveness and support for workers.
Sarah Jones
Lab
Croydon West
Ms Sarah Jones criticised the government's industrial neglect, pointing out that under the Conservatives, more than a third of automotive manufacturing output has been lost since 2010. She warned about potential job losses and the need for an agreement with Europe to prevent higher export costs. She also emphasised the importance of electric vehicles in reaching net zero targets and criticised uncertainty from Back Benchers about scrapping targets.
Birmingham Erdington
Ms Paulette Hamilton agreed with Sarah Jones, stressing the need to prioritise job creation alongside upskilling in her constituency where the automotive industry is crucial for local livelihoods. She highlighted concerns about declining jobs and the importance of sustained support.
John Redwood
Con
Wokingham
The right hon. Member urges the Government to be careful about rushing to close factories making diesel and petrol cars before establishing the electrical revolution, highlighting Germany's decision to delay the ban on new petrol and diesel vehicles until 2035. He questions the feasibility of transitioning entirely to electric vehicles and explores alternatives such as synthetic fuels. He also raises concerns about carbon accounting, affordability, and consumer choice in switching from traditional vehicles to electric cars.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Mr. Newlands disagreed with the right hon. Member for Wokingham's conclusions but agreed that a balanced approach was necessary, emphasising the importance of incentives to switch to electric vehicles given their higher cost compared to internal combustion engine cars. He expressed concern over the challenges faced by the UK automotive sector due to Brexit, highlighting issues such as reduced car production from about 1.7 million in 2017 to just 840,000 in recent years. Mr. Newlands also pointed out that new post-Brexit rules of origin could harm EV exports and called for a comprehensive strategy from the UK Government to support the industry during this period of upheaval.
Luke Evans
Con
Hinckley and Bosworth
Mr. Evans responded to Mr. Newlands, highlighting the success of Triumph Motorcycles in his constituency, which has seen a significant increase in exports despite Brexit, emphasising that such examples demonstrate the potential for British businesses to thrive on the global stage.
Jim Shannon
DUP
Strangford
Mr. Shannon raised concerns about the lack of sufficient charging points in Northern Ireland and questioned whether Mr. Newlands had considered the needs of rural communities who rely heavily on diesel cars. He pointed out that electric vehicles are not practical for many areas, especially those with limited access to charging infrastructure.
Mr. Redwood inquired about how the Government should address potential losses from petrol and diesel taxes if there is a significant switch to electric vehicles, prompting further discussion on financial strategies for the transition.
Mark Pawsey
Con
Rugby
Mark Pawsey, MP for Rugby, discusses the importance of the UK automotive industry and its transition to electric vehicles. He highlights the historical significance of car manufacturing in Coventry, referencing local museums and the impact on employment. He notes a decline in vehicle production but emphasises the growth in export markets and the contribution of iconic brands like Land Rover, Range Rover, Jaguar, and Mini. Pawsey also addresses challenges such as job losses due to reduced volume and the need for investment in electric vehicle infrastructure and battery manufacturing. He supports government targets for decarbonisation by 2030 while acknowledging public concerns over high costs.
Jim Shannon
DUP
Strangford
Jim Shannon highlights Wrightbus in Ballymena, noting that the company has created 1,000 jobs and sells buses across the UK and worldwide. He encourages sharing such positive stories.
Gavin Newlands raises concerns about the affordability of electric vehicles for many constituents, questioning whether they can afford to make the transition despite its benefits.
John Redwood
Con
Wokingham
John Redwood warns that China may try to acquire brand attributes through ownership such as MG, suggesting a competitive threat to UK manufacturers in the electric vehicle market.
Wera Hobhouse
Lib Dem
Bath
The climate emergency demands urgent action, particularly in surface transport. The sale of petrol and diesel vehicles should end by 2030 to support decarbonisation. Sales of EVs exceed expectations due to the 2030 target, which gives industry certainty and confidence. However, there are concerns about the Government watering down this commitment and a lack of long-term strategy for electric vehicle supply chains. The collapse of Britishvolt highlights the need for better support from the Government. Tariffs on exporting EVs to the EU pose a significant risk to UK manufacturers. Infrastructure issues such as charging anxiety remain major barriers, requiring urgent investment in rapid chargers, grid upgrades, and equalised VAT rates.
Saqib Bhatti
Con
Meriden and Solihull East
The automotive industry is integral to the west midlands, with a history dating back to the late 19th century. In 2019, the region exported more than £14 billion-worth of vehicles, double any other UK region and about 36% of total UK exports. The sector employs around 160,000 people nationwide, with a third based in the west midlands, including nearly 9,000 employees at Jaguar Land Rover’s Solihull plant. Despite challenges and the transition to electric vehicles by 2030, companies like Jaguar Land Rover are investing significantly, with £15 billion committed to new electric models, surpassing the deadline of 2030 for fully electric production in their plans. The opening of a large EV charging network at the National Exhibition Centre demonstrates private sector leadership in infrastructure development. There is optimism that consumer demand will drive further necessary improvements and innovations.
Bill Esterson
Lab
Sefton Central
Over the last few months, I have been impressed by the possibilities in our automotive industry but also faced challenges such as EU rules of origin and high electricity prices. A partnership with Government is essential for success in a world of new technologies and competition from China. My visits to Stellantis, Jaguar Land Rover, and ULEMCo showed the potential in this country but also highlighted uncertainty that needs addressing. Since 2010, UK motor vehicle production levels have fallen by 37%, with exports declining as well. We need gigafactory supply and EV charge points, which other countries are on track to achieve while we lag behind. The issue of local content and tariffs must be addressed to help companies comply with rules of origin and compete in export markets. Companies and consumers need regulatory certainty for the zero-emission vehicle mandate. Labour's plan will create 80,000 jobs, power 2 million electric vehicles, add £30 billion to the economy, and ensure binding targets for EV chargers. Our clean energy plans and green prosperity strategy will help lower motoring costs and unlock charging capacity. The motor industry is being let down by high interest rates and mismanagement of the economy.
Jesse Norman
Con
Hereford and South Herefordshire
The hon. Member emphasised the positive investments made in the UK's automotive sector, including £600 million by BMW Group to support electric vehicle production by 2030, £4 billion-worth of new gigafactory investment from Tata Group, and numerous other significant private-sector investments. He highlighted the growth in plug-in vehicles, noting that there are now over 1.2 million such vehicles in the UK—a 45% increase from the previous year—and that 58% of these vehicles are battery electric vehicles.
Eleanor Laing
Con
unknown constituency
The hon. Member mentioned the importance of Moto Rugby, which likely refers to a motorway service area in Rugby, but did not provide extensive details about her contribution.
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Assessment & feedback
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