SMMT calls for urgent investment for automotive suppliers
A new report by the Society of Motor Manufacturers and Traders has warned that the UK risks losing critical automotive suppliers before they can compete for future business.
The report, From supply chain risk to industrial growth, reveals how high costs, lower demand and programme uncertainty are weakening the businesses underpinning UK vehicle manufacturing.
It identifies a potential £6.4bn in vehicle manufacturer spend by 2030 on priority components for UK supply if competitive conditions are secured, and the SMMT is now calling for urgent action to protect the skills, capability and capacity needed to win this investment.
The report shows how unpredictable demand and high UK labour and energy costs are squeezing cash flow and investment in equipment, skills and productivity, with insolvencies among UK vehicle and component manufacturers up by approximately 180% between 2016 and 2025.
SMMT is therefore calling for a national Automotive Productivity Accelerator which would provide £100m in capital grants for productivity, automation, robotics, AI and digitalisation, and £25m for skills.
Mike Hawes, SMMT chief executive, said: “Britain cannot afford to lose the suppliers that make vehicle manufacturing here possible. Once their skills, tooling and expertise are gone, investment becomes harder to win – and far harder to bring back.
“The opportunity to reshore component spending in Britain is real, but we cannot take it for granted. Industry must improve productivity and work to secure critical capability, matched by government action on energy costs, market access and targeted investment support. Backing suppliers is not just about protecting today’s jobs, it is about securing Britain’s place in the next generation of vehicle manufacturing.”
