← Back to Westminster Hall Debates
GKN Automotive Plant: Birmingham
28 April 2021
Lead MP
Jack Dromey
Birmingham, Erdington
Lab
Responding Minister
Amanda Solloway
Tags
Business & Trade
Word Count: 9801
Other Contributors: 5
At a Glance
Jack Dromey raised concerns about gkn automotive plant: birmingham in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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
Government Response
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.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.