Regional development agencies will be pivotal in modernising the UK car industry, according to a top expert advising the Government.
With the recession hitting the industry hard, RDAs were urged to support work to develop a stronger and more competitive supply chain through joint research, skills development and increasing opportunities for research and development.
The report, led by industry expert, Richard Parry-Jones, examined ways to move the British car industry from niche suppliers and factories for foreign car firms to a global leader in low-carbon personal transportation systems and their infrastructure.
Setting out his 20-year vision, the former group vice-president of Ford Motor Company called for a transformed business environment in the UK to provide a more compelling investment proposition versus other countries. The industry currently employs around 500,000 people and generates exports worth £8.9bn a year for the UK economy.
The hub for the industry is the West Midlands, which still has a core of suppliers and manufacturers. Last week, van maker LDV announced a potential Malaysian buyer had been found for the Birmingham firm, which employs 800 people.
Ministers were warned in the report they needed to develop a more pro-manufacturing agenda across Whitehall. Mr Parry-Jones said: ‘This needs to be done on a joined-up, cross-government basis, including the regional development agencies with the Department for Business, Enterprise and Regulatory Reform (BERR) taking the lead.’
Advantage West Midlands, the lead regional development agency, will have a critical role in taking the report’s recommendations forward. Birmingham and Coventry city councils will also have to review their current work with the motor industry, and how they can support it, through work such as attracting inward investment.
Liam Byrne, the Cabinet Office minister, who is also minister for the region, will come under pressure from industry leaders, including the CBI and Society of Motor Manufacturers and Traders (SMMT), to commit the Government to the report’s recommendations.
Mr Parry-Jones said: ‘The auto sector in the UK has transformed itself into a world-class industry, with superb design and engineering skills, very high productivity, product reliability which rivals the best in the world, and flexible, constructive labour relations. The UK can play a decisive global role in developing and manufacturing exciting, low-carbon vehicles for the future.’
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