Industrial Strategy kicks automotive pledge ‘into the weeds’

The IMI has accused the government of backtracking on pre-election commitments to the automotive sector in its new Industrial Strategy.

It says the ‘Invest 2035: the UK’s modern industrial strategy’ focuses on ‘growth industries’ with specific funding to train people for work in defence, engineering, digital and construction roles, with little reference to the automotive sector.

Sarah Sillars, interim CEO at the IMI said: “It is encouraging to see the commitment to skills with a £1.2bn investment in training over the next 10 years. However, it appears the Labour Party’s pre-election promise to deliver a dedicated Automotive Strategy has been kicked into the weeds.

“This is despite the automotive sector playing a pivotal role in the UK’s industrial landscape, providing 866,000 jobs inside and outside the factory gates and £37bn GVA (2023).  There seems to be a real lack of understanding of the fundamental role the people and businesses that operate outside the factory gates play, particularly in relation to emerging automotive technologies, with the growth of electric motoring being critical to the government’s net zero targets.”

Concerns not addressed

Sillars continued: “Having engaged with ministers and departments since the Green Paper was published, the IMI was hopeful that the workforce needs of the sector would be addressed in the strategy. Sadly, that has not been the case.

“Despite contributing significantly to employment, net zero ambitions, and clean growth, automotive is being overlooked across several government policies. For example, the recently published Skills England Report under-represented the automotive aftermarket and technician workforce.

“The latest IMI data shows there are currently over 16,000 unfilled roles in automotive. There could also be a need to replace 144,000 (19%) of the current workforce due to retirement by 2032. This all severely impacts the sector’s ability to be future-ready as technological innovation accelerates alongside the current parc of petrol and diesel vehicles.”

Retention

The IMI says it is critical to both retaining existing members of the workforce and empowering them with new and emerging skills, while also creating a pipeline of talent through apprenticeships, vocational training, and upskilling programmes.

Its manifesto, ‘Driving the Future of Automotive Professionals’  sets out clear, actionable steps to attract new talent into the sector, create defined career pathways, support the upskilling of the existing workforce, and ensure the industry is equipped with the skills it needs for the future.

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