Member Article

Government to create 3,000 new jobs as it pledges £35m to Midlands car industry

The British car industry is to get a significant shot in the arm after Prime Minister Theresa May pledged £35m of government cash as part of a new business zone in the West Midlands.

Around 3,000 engineering and manufacturing jobs are to be created as part of the move which will foster the development of the new 24-hectare Whitley South Infrastructure Project in Coventry, along with further road improvements to connect the new site with the current Jaguar Land Rover global headquarters.

It comes after May said that the government had to do more to stimulate economic growth, particularly across the UK’s regions, with the car manufacturing industry a key plank in her industrial strategy hinted at in May’s maiden speech as PM.

Following the confirmation of the government’s investment, Business and Energy Secretary Greg Clark commented: “Our world-class auto sector is leading the way and this new development will create thousands more skilled jobs. It shows how the private and public sector can work together to make a difference to the economy.”

Britain’s car manufacturers have hit a 16 year high so far this year, with over 900,000 cars rolling off the production line in factories across the UK, the highest figures since 2000.

However, the long-term outlook for the industry looks uncertain following Brexit, with over 72% of those orders going to the European Union and the likes of Nissan and Mini raising doubts about whether their UK plants would still be viable without unfettered access to the single market.

When the production figures were originally released at the end of last month, Mike Hawes, Chief Executive at the Society of Motor Manufacturers and Traders (SMMT), said that the figures were a result of long-term investment strategies and that continued access to the single market had to be a priority to keep the industry booming.

He added: “The latest increase in production output is the result of investment decisions made over a number of years, well before the referendum was even a prospect.

“These decisions were based on many factors but primarily on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce.

“To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”