Making the EV transition a strategic priority
Automotive manufacturers are facing a perfect storm of international trade uncertainty, challenging manufacturing conditions and a global EV transition that’s proving tougher than expected – issues that affect the UK amid key model changeovers on factory lines. It’s not unexpected, therefore, that the latest SMMT data published this week showed a -17.7% dip in UK vehicle production in January, in comparison with a strong performance in the same month last year.
Manufacturers are doing all they can to keep production plans on track, with billions of pounds in investment and thousands of jobs at stake. Support is needed, and government can provide it with its forthcoming industrial and trade strategies, which must prioritise our industry and ensure the timely rollout of the £2bn promised with the Automotive Transformation Fund.
Delivery of these strategies will also support Britain’s world-leading commitment to decarbonise road transport which, as the Committee for Climate Change’s (CCC) latest carbon budget this week made clear, is the single most important factor in delivering national ambition. The CCC report actually forecasts EV take up ahead of the ZEV mandated levels, something that will only happen if we have bold incentives to encourage demand, more affordable electricity, significant additional investment in infrastructure, and a clear and consistent message that buying an electric vehicle is the right thing to do. Increased demand would also help our manufacturing competitiveness, realising planned investment and, hopefully, attracting further commitments across both vehicle production and, especially, the supply chain.
Manufacturers are already investing and innovating in every area of vehicle development, from propulsion to safety, connectivity to security. Despite this continued investment, the issue of car crime remains a concern so government’s new ban on the sale of electronic devices which are used for stealing cars is very welcome. It’s a move we have long called for, and while industry continues to invest heavily to stay ahead of the criminals, many of them organised gangs, further coordinated action is needed to reduce this societal problem.
Finally this week, SMMT was delighted to partner Mission Automotive to launch a new veterans’ career guide at the National Transition Event at Silverstone. Veterans have for many years proved to be highly skilled and career-ready candidates, and it is important we support ex-Armed Forces personnel. The automotive industry needs the very best talent and this is a rich talent pool. The guide’s career advice and signposting will help more ex-Forces personnel find a role in our sector that suits them and industry will be the stronger for it. Businesses should therefore take every measure to recruit these veterans and, as a first step, I would encourage every employer to read and sign the Armed Forces Covenant here. It is an investment worth making for so many reasons.