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Automotive Industry
12 July 2023
Lead MP
Jonathan Reynolds
Debate Type
General Debate
Tags
TaxationClimateBrexitBusiness & TradeChildren & Families
Other Contributors: 23
At a Glance
Jonathan Reynolds raised concerns about automotive industry in the House of Commons. A government minister responded. Other MPs also contributed.
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
Recognises the automotive industry as crucial for British manufacturing, highlighting its current challenges due to Conservative neglect. Calls for urgent resolution of rules of origin changes and adoption of an active industrial strategy to build battery factory capacity. Emphasises the need for stability, partnership, and clear policy signals from the Government.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Highlights the decline in UK vehicle production by over a third under Conservative rule. Stresses the importance of addressing battery manufacturing, rules of origin changes, and higher industrial energy costs. Advocates for an active industrial strategy to support domestic battery production and secure automotive sector's future.
Mark Tami
Lab
Alyn and Deeside
Supports the inclusion of hybrid engines as part of the solution, citing his constituency's Toyota engine plant that produces high-quality hybrid engines. Emphasises the need for industry growth and investment.
Asks about the number of gigafactories enabled by this Government in the UK, highlighting the lack of progress compared to other countries like Germany and Spain.
Highlights the need for faster roll-out of charging points, especially in northern constituencies with high pollution levels. Criticises the disparity in charger installations between Westminster and the north of England.
Nusrat Ghani
Con
Sussex Weald
Critiques the opening speech for its negative portrayal of the automotive sector, highlights positive developments such as Renault and Geely's investment in the UK. Emphasises the need to promote the sector rather than playing political games. Mentions Toyota’s success in South Derbyshire and discusses challenges like recruitment and rules of origin tariffs.
Ghani states that car production has risen for four consecutive months, with 79,046 cars produced in May, a 26% increase from previous figures. She also highlights export growth and the importance of the sector to the UK economy, employing 166,000 people and adding over £70 billion annually.
The speaker outlines government support for innovation, apprenticeships, energy costs reduction measures, and investments by companies like Nissan, Envision, Stellantis, Ford, JLR, and others. She discusses the importance of developing a supply chain import strategy to address critical minerals and supply chains.
Ghani also highlights the UK’s strengths in automotive research and development, including support from world-leading universities and investment through initiatives such as the Advanced Propulsion Centre and Automotive Transformation Fund.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Jonathan Reynolds criticises the lack of support for small businesses in the budget, highlighting the need for more investment in local communities.
Richard Thomson
SNP
Glasgow Central
Criticises the Minister's speech, highlighting the lack of a substantial industrial strategy under Conservative Governments. Mentions previous iterations of Conservative industrial strategies and their failures. Discusses the automotive industry's struggle due to economic policies that undervalued manufacturing over services, leading to significant plant closures and job losses in recent years. Emphasises the importance of gigafactories for green transition and battery manufacturing, noting the UK's risk of falling behind Europe. Raises concerns about post-Brexit rules affecting EV manufacturing competitiveness and potential factory closures if no action is taken. Criticises both Labour and Conservative promises to harness the state's power without addressing fundamental issues like Brexit.
Luke Evans
Con
Hinckley and Bosworth
The automotive industry is crucial for British manufacturing, with the east midlands leading in innovation. MIRA Technology Park exemplifies this, offering high-value jobs and cutting-edge research. Local businesses like Triumph Motorcycles, Flying Spares, and JJ Churchills showcase diverse opportunities within the sector. Evans calls on all MPs to visit his constituency and witness firsthand the industry's potential.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Critiques Luke Evans' speech as not credible, citing issues with Britishvolt and Stellantis, highlighting concerns about Government obstruction in discussing these issues through Parliament. Questions the positive outlook on the automotive sector's future.
Questions whether Brexit rules of origin will negatively impact the automotive industry.
Khalid Mahmood
Lab
Birmingham, Perry Barr
Praises Birmingham and west midlands for their manufacturing heritage, highlighting local companies like Jaguar Land Rover suppliers. Emphasises the importance of training and apprenticeships in EEF training schools, advocating for capital support to enhance equipment capabilities. Raises concerns over charging points and grid connection delays affecting EV infrastructure development.
Nia Griffith
Lab
Llanelli
The automotive industry in Llanelli has a long-standing tradition, with significant employment generated by both large and small firms. The current challenges include high energy prices, rules of origin issues, and the need for a clear industrial strategy to support transition towards electric vehicles. Griffith called on the Government to postpone the escalation of rules of origin requirements until 2027, support research and development, clarify UK's participation in Horizon programme, and invest heavily in renewable energy. She emphasised that without immediate action, there is a risk of losing more jobs as companies choose to establish factories elsewhere due to better incentives.
Sarah Owen
Lab
Luton North
The automotive sector is crucial to industrial towns and cities across the UK, employing thousands of skilled workers. The closure of plants such as SKF in Luton threatens up to 300 jobs. Vauxhall's Kimpton Road plant employs around 1,500 people and has a long history of manufacturing vehicles for decades. Despite its importance, the automotive sector faces challenges due to Brexit rules of origin and lack of battery-making capacity, as exemplified by Britishvolt’s collapse. The Government needs an industrial strategy that supports businesses to stay competitive in the global market, including investments in gigafactories, apprenticeships, and clean energy.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
The automotive industry is crucial to the UK's economy, providing skilled jobs. Luton has a strong association with Vauxhall Motors and its manufacturing history. The speaker called for a long-term strategy from the Government to support the sector, noting a 37% decline in British motor manufacturing since 2010. She mentioned concerns over rules of origin quotas and potential tariffs on electric vehicles, which could make EV manufacturing uncompetitive. The UK relies heavily on battery technology imports from Asia, posing risks under new rules of origin requirements. Innovations in motorsport influence the wider automotive industry, but there is a risk that top talent will move elsewhere if the Government does not support the sector adequately. Labour’s plan includes scaling up domestic battery production and accelerating electric vehicle manufacturing, aiming to create 80,000 jobs and adding £30 billion to the UK economy.
Ian Lavery
Lab
Blyth and Ashington
The automotive industry has experienced a 37% decline since 2010. There is a pressing need for investment in electric vehicle manufacturing, with the UK lagging behind other countries due to insufficient government support compared to the Inflation Reduction Act in the US and similar measures in Europe. The proposed gigafactory in Wansbeck was heralded as an opportunity but failed due to lack of funding from the Government's automotive transformation fund.
Matt Western
Lab
Warwick and Leamington
Supports Ian Lavery's position, highlighting the potential for a gigafactory in Wansbeck alongside the National Grid facility. Emphasises the site's suitability due to its interconnectors and proximity to renewable energy sources.
Luke Evans
Con
Hinckley and Bosworth
While agreeing on the importance of supporting gigafactory projects, argues for a UK-wide perspective rather than focusing solely on individual constituencies. Champions the automotive industry's leadership in global markets.
Sarah Owen
Lab
Luton North
Stresses that addressing job loss is crucial alongside future job creation in the sector. Argues for a comprehensive approach to support both existing and new jobs in electric vehicle manufacturing across the UK.
Justin Madders
Lab
Ellesmere Port and Bromborough
I am grateful for the opportunity to speak on behalf of Ellesmere Port, a town synonymous with Vauxhall Motors. The plant has been an integral part of the local economy for generations, providing highly skilled jobs that are central to the community's pride and identity. Despite its importance, the car industry faces significant challenges due to Brexit, including potential tariffs that could make UK-manufactured vehicles uncompetitive on the European market. There is a pressing need for interventionist government action to support the automotive sector in transitioning towards electric vehicle production and fostering local supply chains through initiatives like gigafactory construction and investment in charging infrastructure. Additionally, there should be better use of public procurement policies to bolster domestic car manufacturing.
Matt Western
Lab
Warwick and Leamington
The speaker emphasises the importance of the automotive industry to the UK economy, citing specific examples from different regions. He criticises the lack of support from previous governments and highlights the need for a clear industrial strategy to address challenges such as transitioning to net zero emissions. He mentions issues like political instability affecting business investment, the impact of Brexit on trade with Europe, and the urgent need for improvements in EV charging infrastructure and hydrogen hubs. The speaker also discusses the importance of battery production and sustainable fuels. Overall, he advocates for a Labour government prioritising an agreement with the EU to facilitate smooth trade and reducing energy costs for businesses.
Louise Haigh
Lab
Sheffield Heeley
The automotive industry is struggling under a Government who have no plan or strategy, and are constantly risking more jobs being shipped overseas. The debate was enhanced by contributions from MPs such as Sarah Owen, Rachel Hopkins, Justin Madders, Dame Nia Griffith, Matt Western, highlighting the impact on their communities. The UK cannot afford to wait any longer for a strategy; car production has slumped since 2010 and other countries are outpacing us in battery manufacturing and EV production. Labour's plan includes avoiding tariff cliffs through the TCA, financing eight additional gigafactories, accelerating EV charge point roll-out, and investing in cleaner energy to lower electricity costs for industries.
Jesse Norman
Con
Hereford and South Herefordshire
Responding to the debate, Jesse Norman acknowledges contributions from other MPs while emphasising positive developments in automotive manufacturing such as new investments by Geely and Renault, and improvements in electric vehicle infrastructure. He also highlights the growth of business investment since 2010, referencing a report by the Institute for Government.
Sarah Owen
Lab
Luton North
In an intervention, Sarah Owen corrects the Minister's statement that she did not speak in the debate. She also questions the optimism regarding the future of manufacturing industry given the tariffs on passenger cars and vans.
Government Response
Responding to contributions from Members, Jesse Norman highlights positive developments in automotive manufacturing such as new investments by Geely and Renault, growth of business investment since 2010, improvements in electric vehicle infrastructure, and progress in renewable energy.
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