Minister announces new UK auto industry investigation

The work will bring together industry experts and will be led by former Ford vice president Richard Parry-Jones. Shriti Vadera said the UK's car industry was one of the most successful in the world, with record levels of production at UK plants. "But the industry, like many others, is facing a number of challenges as it moves into the next decade, particularly in terms of reducing emissions and tackling a continued rise in competition from low-cost countries such as China, India and Eastern Europe,” she said. Parry-Jones said that new challenges, such as sustainable motoring and the emergence of strong auto markets and sectors in the East, provided powerful stimuli for change. The investigation will also look at the business environment for Japanese automotive supply companies in the UK, aimed at improving the UK's supply chain capabilities, including in areas such as management skills and the pace of new product delivery. Shriti Vadera added: "A strong local supply chain is essential if we are to retain and increase vehicle manufacturers' investment in the UK. That is why we are already setting up a service to help match UK suppliers with car manufacturers, as well as establishing a new industry-led programme to help ensure supply chain managers have the right skills for the job." Welcoming the announcement, SMMT chief executive Paul Everitt said the Society would work closely with officials to create a plan that built on the strengths of the sector and addressed the challenges it was facing. “The automotive industry is at the forefront of process improvement, delivering economies of scale and low unit costs, despite the increasing complexity of its products,” he said. The report, ‘Business Environment for Japanese Automotive Supply Companies in the UK’ published alongside the announcement, highlighted some of the key challenges facing the sector, he added. “SMMT is working with BERR and the regional development agencies to raise awareness of the key competitiveness issues, such as quality, cost, delivery performance and ability to innovate. It is important that industry and government work together to deliver the support framework and regulatory environment for global automotive companies to prosper in the UK.