Britain risks losing automotive suppliers critical to vehicle manufacturing before they can compete for future work, the Society of Motor Manufacturers and Traders (SMMT) has warned, as it calls for a £130m national Automotive Productivity Accelerator to fund capital grants, tooling finance, skills and diversification.
The trade body’s report, From supply chain risk to industrial growth, identifies £6.4bn of spending by vehicle manufacturers on priority components by 2030 that could go to UK suppliers, including significant opportunities to replace imports, if competitive conditions are secured.
According to the SMMT, high costs, lower demand and programme uncertainty are weakening the businesses that underpin UK vehicle production. It said many suppliers are in a state of distress, at a time when manufacturers are deciding where to award their next major vehicle programmes.
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