Commons Sense

House of Commons · Westminster Hall

GKN Automotive Plant: Birmingham

28 April 2021 · 5 other contributors · 9,801 words

Opened by Jack Dromey Lab Birmingham, Erdington

Responding minister: Amanda Solloway

EmploymentEnergyBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jack Dromey raised concerns about gkn automotive plant: birmingham in Westminster Hall. A government minister responded.

Key points

  • The closure of the GKN Automotive plant in Erdington risks 519 jobs and impacts twice as many in the supply chain.
  • The Government pledges support for the UK automotive sector, including 4.6 billion in loans and a 500 million fund for zero-emission vehicles.
  • Meetings between the Government and GKN executives explore alternatives to plant closure and discuss sustainable proposals.

Key requests to Government

The Government must act decisively to protect manufacturing jobs and support a business case for investment in the plant that could make it more productive than other European sites. The lead MP calls on Melrose Industries to reassess alternatives to closure in good faith, as they have promised before the Business, Energy and Industrial Strategy Committee.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jack Dromey Lab Birmingham, Erdington

The closure of the GKN Automotive plant in Erdington poses significant risks to workers, their families, and the wider automotive industry. The plant has a history spanning over 50 years, but now faces the loss of 519 jobs with twice that number affected in the supply chain. Workers' livelihoods are at stake, including families reliant on single income earners and those with generational ties to GKN. Additionally, the closure threatens British automotive industry competitiveness by moving production overseas and impacting domestic supply chains.

Other contributors (5)
  • Grahame Morris Lab Easington

    Expresses solidarity with the workforce at GKN Automotive in Birmingham and criticises Melrose for its plans to close the plant. Highlights that the plant has a history of over 50 years and is vital for British manufacturing, especially as the automotive sector shifts towards electric vehicles. He calls on the Government to intervene and support the plant's viability.

  • Lucy Powell Lab Co-op Manchester Central

    Expressed solidarity with workers at the GKN plant in Erdington and highlighted concerns about Melrose's decision to close the plant, which flies in the face of assurances given three years ago. Raised questions about the UK government's approach to supporting British industry compared to other countries like Germany or France, emphasizing that retaining domestic production capacity is crucial for a green new deal and levelling up. Mentioned an alternative business plan developed by Unite and industry experts aimed at improving productivity and shifting focus towards electric vehicle technologies.

  • Mark Pawsey Con Banbury

    Supports the aim of a strong manufacturing future but argues that businesses should be allowed to make necessary decisions for their survival. Cites Melrose's intentions and challenges faced by GKN since acquisition, including pandemic and Brexit uncertainty. Suggests phased approach by Melrose will minimise impact.

  • Mick Whitley Lab Birkenhead

    Mick Whitley declared his interest as a former employee of Vauxhall and Unite member, stressing the importance of the automotive sector in British manufacturing. He highlighted the financial viability of GKN Birmingham and proposed an alternative plan that would improve productivity and transition towards electric vehicle parts production. Whitley criticized the Government for neglecting to support the industry and expressed concern over the potential closure's impact on employment and the local economy.

  • Rachel Hopkins Lab Luton South and South Bedfordshire

    The MP highlighted the importance of manufacturing jobs in Luton South, expressing solidarity with workers at GKN Erdington whose jobs are at risk due to offshoring by Melrose. She criticised Melrose's disregard for loyal workers and communities, noting that unemployment in Birmingham is significantly higher than the national average. The MP emphasised the critical impact on the UK automotive supply chain and the need for a robust domestic supply chain post-pandemic. She also mentioned Unite's two-stage plan to save jobs by improving productivity with additional savings and producing eDrive components for electric vehicles, which could potentially save more money than Melrose's proposal to close the plant.

Government Response

Amanda Solloway

The Government are committed to supporting the UK automotive sector through challenging times, providing £4.6 billion of liquidity through the coronavirus loan scheme and announcing a £500 million fund for zero-emission vehicle supply chain development. They have met with GKN executives to explore alternatives to plant closure and discuss long-term sustainable proposals. Transfer pricing between plants is carried out on commercial terms and independently audited.

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