UK Automotive Industry

Debate between Dan Byles and Gavin Williamson

Tuesday 1st April 2014 Westminster Hall

[Gavin Williamson (South Staffordshire) (Con)]

It is a great privilege to have secured this debate about the United Kingdom’s automotive industry. I hope that we will approach it in a consensual manner, discussing some of the successes we have had and how we move the industry forward. I think hon. Members are here not just because we understand how important the UK automotive industry is to our whole economy, but because we have a passion for the automotive sector itself.

I am a great fan of the BBC’s “Top Gear”. It is one of those programmes that is on every Sunday, and I dedicate myself to watching it. I am not sure whether you, Sir Alan, have the same enthusiasm for the programme, but I certainly do. One of the finest episodes I ever saw was in the most recent series, where the last part of the episode was dedicated to celebrating the UK’s automotive industry and everything we produce here, whether it was a Dennis or Leyland truck; a product from JCB or Caterpillar; a Norton or a Triumph motorcycle; one of many family cars that are produced in the UK by Toyota, Nissan or Honda; or some of the luxury cars that are envied the world over—Bentley, Rolls-Royce, Aston Martin, Jaguar and Land Rover.

The episode also celebrated our success in Formula 1, for which we are producing the finest racing cars in the world—from Petronas, Red Bull and McLaren to Williams and Lotus. The Italians hold nothing on us, as we beat them consistently. Quite simply, we produce the best in Britain, and a lot better than what is produced in Italy.

I do not want this debate to be about how we produce better things than the Italians, the French or the Germans, as it could go on for many more hours than the hour and a half that we have been allotted. Many people have a livelihood in the automotive sector. Some 731,000 people are involved in the wider automotive sector, while 146,000 are directly employed in automotive manufacturing. The industry expects the sector to grow, not by 5,000 or 10,000 jobs, but in the region of 100,000 extra jobs by 2020.

We are producing more and more. Often we look back to the ’50s and ’60s as the heyday of automotive production, but we are rapidly gaining ground. Last year, 1.5 million cars were produced in the UK. Production is forecast to be up to 2 million by 2017—more cars produced in Great Britain than ever before. Those are high-value cars, which make a difference to our balance of trade. Some 10% of all the things that we export from this country are automotive products.

We are the second largest exporter of construction equipment in the world. We are leading the field—for example, with JCB, which is based in Staffordshire—in developing technology and world-leading products. If we go to building sites in China, Russia, India and Brazil, we can see British products digging the foundations for their economies.

[Dan Byles (North Warwickshire) (Con)]

Does my hon. Friend agree that it is not just about British products going abroad, but about overseas companies seeking to come to Britain to make use of our expertise? For example, Nissan recently announced its largest investment outside Sunderland—a new £6 million investment with ADV in my constituency. That sort of confidence from overseas companies coming to the UK is vital.

[Gavin Williamson]

My hon. Friend is absolutely correct. Much of our success has depended on learning from foreign businesses. They invest in the UK because they see that we have the right environment and structures to succeed.

Since 2010, £7 billion has been invested in the automotive sector, growing success and bringing jobs to the UK. My constituency of South Staffordshire has been incredibly fortunate to benefit from that investment; Jaguar Land Rover has announced a £500 million investment to build a new engine manufacturing facility on the i54 South Staffordshire site, creating 1,400 jobs directly and another 3,500 jobs across the UK in our supply chain.