Brexit may have placed a lot of uncertainty on the car industry, but there are certain businesses that have been able to thrive. British companies that make car parts have earned £41 million in extra private investment over the last four years, due to a £13 million government stimulus scheme. This data was recorded by the Society of Motor Manufacturers and Traders (SMMT).
The Long Term Automotive Supply Chain Competitiveness programme aided 27 British suppliers in competing on a global scale. Managed by the SMMT for the Department of Business Energy and Industrial Strategy, the programme ran from 2014 to 2017.
Key statistics were captured by a Production Engineering Solution report. Based on the ‘renaissance’ in the industry, the production of British made cars has increased to 44%, up from 2011’s 36%.
Business Secretary Greg Clark is confident in the ongoing success of the car industry. “The UK’s automotive industry is one of our biggest success stories that continues to attract significant investment from leading manufacturers. The Long Term Automotive Supply Chain Competitiveness programme has proven the value of our support and investment in the sector and helped power us towards our goal of increasing UK content in domestically produced vehicles to 50% by 2022.”
The firms that took part in the programme were able to improve their research and development skills. This increased turnover growth and stimulated new markets. As a result, 3200 jobs were created and safeguarded.
SMMT Chief Executive, Mike Hawes gave his opinion. “Supporting employment and investment into the supply chain is critical to the future health of automotive manufacturing in the UK. The LTASC programme shows how a relatively modest initial government investment can leverage considerable industry backing, delivering huge long-term benefits. It’s a fantastic example of collaboration between public and private sectors creating and safeguarding thousands of jobs in this globally competitive industry.”
