Automotive Industry

Luke Evans Excerpts

Wednesday 12th July 2023 Commons Chamber

[Jonathan Reynolds]

I am incredibly grateful to my hon. Friend for making those points. The approach of the Front Bench—from her, from me on industrial policy, and from my hon. Friend the Member for Sheffield, Heeley on transport policy—must bring those two things together. We need the policies in place that will make this country a world leader in the production of vehicles and ensure that it also works for consumers. She raises the fact that there are more charging points in Westminster—I know my hon. Friend’s constituency, which is not far from mine—and the difference between comparable parts of this country, north and south, in the level, density and availability of chargers is unthinkable, let alone in comparison with Norway, for instance. Not only do we not have enough chargers but grid, maintenance and connection issues often mean they are out of order. I absolutely assure my hon. Friend that when we as a shadow Cabinet and a potential Government think about these issues, both vehicle production and consumers are paramount. Clearly, consumers want to purchase electric vehicles—that is the growth part of the market—but too often we do not have the infrastructure in place. It cannot be some form of novelty. I have driven electric vehicles around Greater Manchester when it was something of a novelty—I could get access to chargers and, at times, preferential parking spaces near Deansgate, which is no small thing—but for mass market usage, neither the policies nor the infrastructure are yet in place. That needs to be widely recognised.

On the international trade position, it was always imperative to have a domestic battery industry, but it has become an existential issue because of the Government’s approach to our trading relationship with the EU. As discussed in relation to regional export markets, eight in 10 vehicles made in the UK last year were exported, so it is widely recognised that the impending cliff edge in the trade and co-operation agreement with the EU on rules of origin is a serious challenge to the future of the sector in the UK. The Government have been far too slow to realise the scale of that danger, and while they may promise that a deal is coming soon, I am afraid that “soon” cannot come soon enough. Major UK manufacturers including Stellantis, Jaguar Land Rover and Ford have all warned that a failure to reach a deal would cost jobs in the UK.

It has been two and a half years since the trade and co-operation agreement was formally signed. That is precious time that could have been used to plan and prepare, but those are two words that this Government often fail to understand. What have they done in that time? They have not secured investment in battery capacity. They have not improved our relationship with our biggest export market, and they certainly have not worked with industry to find solutions.

We know that a breakthrough is needed, and we would use our plans to make Brexit work to ensure that the rules of origin work for British manufacturers. We cannot achieve a compromise without working with our partners in Europe, and I believe that only Labour can be that good-faith partner. Our plan to invest in battery capacity, alongside compromises on the rules of origin, is the sensible way forward to meet our climate objectives and trade obligations and retain our industrial base.

We will make the UK a clean energy superpower by 2030, with net zero carbon electricity lowering costs for the UK car industry by no longer leaving UK industry prone to the volatility of international gas prices, alongside better grid connections and planning reform to ensure that “made in Britain” does not become a thing of the past. That is the prospectus for action we need. Right now, this country needs some optimism. The mantra of this Government—that this is as good as it gets—is as depressing as it is wrong.

[Dr Luke Evans (Bosworth) (Con)]

Will the hon. Gentleman give way?

[Jonathan Reynolds]

Go on, then.

[Dr Evans]

There is a news report about a new global company being launched by the French motor giant Renault and the Chinese manufacturer Geely that will invest €7 billion here, creating 19,000 jobs. Is that not exactly the kind of optimism Conservative Members talk about?

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[Ms Ghani]

The Government are working hard to share the challenges that will be faced by all manufacturers in Europe, not just the UK, when it comes to importing and exporting vehicles. This is not just a UK issue, and it is important that not just we but our counterparts in Europe make these arguments loud and clear to the EU. I recently met SMMT and asked that its sister bodies do the same where they reside in European countries, to ensure that those arguments are heard loud and clear.

As I said, there is huge diversity of companies within the supply chain and manufacturing of all automotive vehicles, and the UK has a full automotive eco-system across the UK. The sector is here because it recognises the UK’s unique strengths. Our engineers are world class—it is not for nothing that six out of a total of 10 Formula 1 teams are based in the UK. More broadly, the sector recognises that this Government have its back. We want to use innovation, skills and a competitive business environment to ensure that the UK automotive sector can thrive.

[Dr Luke Evans]

I am grateful to the Minister, because she alluded to the point that I was making about the automotive industry. We have talked a lot about manufacturing, but the UK is the world leader in things such as research and development, as well as in testing—autonomous testing, safety testing; we are literally the world leaders in this stuff. I mainly know that because a lot of it is based in my patch. Does the Minister agree?

[Ms Ghani]

I could not disagree with my hon. Friend, who is a champion for all things technology and transport, as well as for his constituency. The investment made in R&D has enabled large manufacturing firms to work closely with our academic institutions, and to de-risk some of the technologies that are now becoming mainstream, and we continue to support that area. That leads on to my next point about the Advanced Propulsion Centre and the automotive transformation fund, which are key in us trying to de-risk and adopt new technologies to drive the sector forward.

On the Automotive Council, the hon. Member for Stalybridge and Hyde said that he was engaging with the sector, but I am not quite sure where and when. A lot of the comments he made will not go down well with the sector because they were not very positive on all the work it has been doing. I engage directly with firms to see how hard they are committed to the sector, and what they expect from their politicians is support, not to be talked down.

I put on record my thanks to Graham Hoare, the current co-chair, Mike Hawes, Neville Jackson, Ian Constance, Markus Grüneisl, Paul Willcox, Murray Paul, Adrian Hallmark, Michael Leiters, Tim Slatter, Alan Johnson, Richard Kenworthy and many other indispensable members of the Automotive Council. I thank them for all the work they do, considering how challenging times have been not just for us but for our counterparts in Europe. I recently spoke at the Society of Motor Manufacturers and Trader’s parliamentary reception, and I welcome its “Manifesto 2030” with its five key priorities: green automotive transformation strategy, net zero mobility, green skills, made in Britain, and powering UK clean tech. There is a lot that we agree on, and I look forward to working with the sector to try to protect and strengthen the whole automotive industry. Car companies want to innovate, and we want to support them to do so. That is why the Government have an overarching goal of making the UK a global hub for innovation, as alluded to by the my hon. Friend the Member for Bosworth.

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[Dr Luke Evans (Bosworth) (Con)]

I rise to speak in this debate because it is called “Supporting the Automotive Industry”. With the sense of humility that the Opposition asked for, I read the motion. It states:

“this House recognises that the automotive industry is the jewel in the crown of British manufacturing and believes it can have a bright future creating good jobs for people across the UK”.

Then it falls apart, because it states that it

“regrets that after 13 years of Conservative neglect the UK risks losing this world-class industry”.

I thought, gosh, as a matter of humility, have I missed something? What have the Opposition been talking about that I have so obviously missed? So I thought I would do a quick search on Hansard to see when the automotive industry has been talked about. The Leader of the Opposition, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), has mentioned it once since 2015, and that was when he was quoting my right hon. Friend the Member for Surrey Heath (Michael Gove) confirming that the automotive sector was ready for Brexit. The shadow Secretary of State for Transport, the hon. Member for Sheffield, Heeley (Louise Haigh), has never uttered the words “automotive industry” in Hansard. To be fair, the shadow Secretary of State leading the debate, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), has mentioned it six times, so once every two years, which is really useful to note.

[Jonathan Reynolds]

I am sorry, but that is not credible. Was the hon. Gentleman in the Chamber for the urgent question when Britishvolt, the flagship automotive battery policy, fell apart? Was he there when Stellantis gave evidence to the Select Committee or when we asked two urgent questions? On both occasions, the Government objected to us using Parliament to raise those important issues, so I am afraid I do not find his position credible.

[Dr Evans]

That will lead me on to what I want to talk about, which is the positive side of this. Britishvolt wanted to have its headquarters in my constituency, and I met it to see what would happen. The Government protected £100 million of British taxpayers’ money. If that had gone to the wrong place, the shadow Secretary of State would have been at the Dispatch Box lambasting the Government for frittering away taxpayers’ money, so I will take no lectures on that point.

I am here to talk about the positive side of the automotive industry. In the east midlands, we are very proud of what we have to offer in the manufacturing industry. It has been through a tough time for the past 50 or 60 years, but we are making real progress. Only recently, Bosworth was noted as a net zero hotspot and described as

“connected areas with concentrated net zero activity, where businesses create jobs and add to the local hotspot’s economy”.

That means better paid jobs, better opportunities locally, better local businesses and, nationally, 840,000 jobs. Within that context, the average wage for someone in the industry is £42,600, compared with the national average of £33,000.

What does that look like in reality on the ground? That is what I want to spend a few minutes talking about. On Monday, I was at a place called Horiba MIRA. For those who do not know it, imagine the silicon valley of the automotive industry. Imagine the Google complex of anything to do with the car industry. From designing to manufacturing to testing, it all happens in this one space. It is unique in the world in what it can do. It was supported by Government from 2010 all the way through, with investment to grow as an enterprise zone, and was then allowed to flourish and attract international investment from the likes of REE, an Israeli company, bringing hundreds of millions of pounds in and bringing 300 jobs with it.

That is just a start in describing what is going in the automotive industry. I agree with those on both sides of the House who have said that this really is a revolutionary opportunity. Everyone in the world is trying to work out the best way to take it, and the best way is to support our research going on right here, including in happening in my constituency. MIRA Technology Park has over 600 high-value jobs, with specialisms in anything from autonomous car driving to battery technology, road safety and defence. Those technologies are all being tested right here in the UK. In November 2022, Horiba MIRA’s assured connected autonomous vehicle testing won the test facility of the year prize at the Vehicle Dynamics International awards, based on innovation in products, teams and technology. In June 2023, MIRA won an award from Jaguar Land Rover at its seventh annual global supplier excellence awards, demonstrating outstanding achievements in JLR’s global supply based on

“customer love unity, integrity, growth, impact.”

That all sounds very good, but when I ask my constituents whether they are aware of what is going on in our constituency, they do not really know what MIRA is. That is part of why I am so pleased to speak in this debate, because actually the UK is fantastically good in this space. It is not just about creating jobs—at MIRA, someone can go from being an apprentice all the way through to a PhD level qualification on cyber-security in cars. It is also innovating for the future to get to net zero and create energy security. It has been partnered by local enterprise partnerships, investment zones and the Midlands Engine to help drive investment, change policy and bring inward investment from the international community.

On Monday, I was very proud to welcome the president of Horiba, Mr Horiba. We saw two things: the research it is doing with Ceres on hydrogen battery technology to allow us to have battery technology in houses and vehicles; and driving simulators. If someone wants to break into the industry and is designing a car, they can now use a simulator to test how it will handle, what it will look like, and how it will feel in terms of comfort and safety. All that can be done simply in a computer-generated room, which takes out the need to make 50 to 100 prototypes and collapses it down to about one or two. But Horiba does not just have dark rooms with TV screens—there is an entire race track to test every single condition one can think of that a car might need to go through. That is right here in our country, leading the world on the international stage on how to bring in investment. I am really pleased that we can talk about that.

There is more in my constituency. We have Triumph Motorcycles. For those who do not know, Steve McQueen leapt away on a Triumph motorcycle. James Bond was seen going over the rooftops on a Triumph motorcycle. I am very proud to have Triumph Motorcycles’ headquarters in my patch, creating over 1,000 jobs. In the last three years, it has broken records for the number of bikes it has sold, which has gone up by 30% across the world. All across America and into Latin America, it is breaking into the industry and the market. That means high-end innovative jobs designed and manufactured right here in my constituency. This is the kind of thing that Members on both sides of the House are not good enough at talking up and talking about. That level of innovation and finishing makes a huge difference to my local community.

I want to mention two other businesses. Flying Spares, based in Market Bosworth, is a second-hand remodelling firm for cars such as Rolls-Royces. If someone need a part, it will ship it anywhere across the world. That is an innovative way of creating longevity and helping achieve net zero by recycling our high-end products. JJ Churchills is a fantastic advanced manufacturing aeronautical and defence agency, which employs 110 people, with high-end apprenticeships, in the middle of the countryside. This is happening right in my constituency—it is 85% rural, yet I have businesses like that.

The final jewel in the crown is Caterpillar, which last year made £59 billion worth of sales worldwide. The company, which has 1,000 people working in Desford in my constituency, is looking at making green hydrogen-fuelled electric tractors, forklift trucks, dumper trucks—you name it. I have had the pleasure of sitting there and driving Caterpillar vehicles in Arizona remotely. That is the sort of innovation that we can do. Caterpillar is sourcing its manufacturing right here in Desford, and has been for 70 years.

I mention all this to highlight some of what is going on in my small area of Leicestershire. People choose the UK because of the skillsets we have, the tech environment we create, the regulation we have in place and our stability in the global market. That is why they come here. Does that mean we should shut up shop, because we have done enough? No, of course not. It is important to make sure that there are signposts and avenues so that people know where to invest. When I speak to the likes of the Midlands Engine, which is looking for ways to drive investment in the 11 million people in its area, among the questions that come up are: where should businesses go, and how do they connect with Government?

[Gavin Newlands]

The hon. Member is trying manfully to paint an extraordinarily positive picture of the industry, but does he not think that the rules of origin and Brexit will have a negative impact on the automotive sector? Yes or no?

[Dr Evans]

If that was the case, Triumph would have struggled, but it has not.

A fundamental point has not been concentrated on enough. I am danger of straying into the territory of my Department, the Department for Energy Security and Net Zero, but the hon. Member for Worsley and Eccles South (Barbara Keeley), who is no longer in her place, raised the subject of infrastructure. It does not matter what we are discussing, be it wind, EVs, power generation or gigafactories; unless we sort the grid out there will be a fundamental difficulty. I believe that, broadly speaking, the UK is five years ahead in delivering on net zero. The problem is that so many companies are coming forward that they simply cannot be connected. I ask the Minister to speak to his colleagues in the Government to make sure that we deal with infrastructure. I know a report is coming out this month on the grid and how we can take it forward.

My final plea goes to Members in all parts of the House of Commons. Please come to my constituency of Bosworth and see just how marvellous our automotive industry is. From design to manufacturing to testing at the highest world standards, we have it all right here in Bosworth. You are more than welcome to join me.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

It is a privilege to speak in this debate as one of the very few fully apprenticed trained engineers in this House. Birmingham and the west midlands have been the beating heart of manufacturing for the whole country and we want that to continue.

Jaguar Land Rover is a huge company in a constituency neighbouring my own. In my constituency, I have Bracebridge Engineering Ltd, specialists in metal fabrication and sheet metal work; P&B Metal Components, which supplies the automotive and aerial industries; Coker Engineering, which offers CNC turning, milling and grinding and assembly; Dana UK Axles, supplier of car parts to JLR; and many other manufacturers. I am particularly proud to have IMI Truflo Marine, the most revered experts and the best manufacturer of valves for submarines—the only one in the world—doing fantastic work in my constituency. We also have Fracino, whose coffee machines are better than most Italian-made ones and are supplied to most of the coffee houses in this country. The company was set up by an Italian family based in my constituency and does fantastic work.

The issue I really want to talk about today is training and apprenticeships, because I also have in my constituency the Engineering Employers’ Federation training school. I opened the centre 10 years ago, since when it has grown fourfold. The Leader of the Opposition, my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), has visited twice to see the great work being done there. His predecessor, the right hon. Member for Islington North (Jeremy Corbyn), also visited. If the Minister wishes to come, I will be happy to guide her around.

The EEF training centre is a serious organisation that works very hard to produce apprenticeships. EEF members in Birmingham pay for their apprentices to go there, where they are taught to level 3 and to graduate level, too. I ask the Government to look at how to provide capital support to the EEF training school and colleges across Birmingham and the west midlands, and across the country, so that they can buy the sort of equipment they need—CNC machines, sheet metal equipment and so on—to train people properly. I have too many colleges unable to provide such training because they do not have the capital they need for equipment. To support the industry we have and to get the industry we want, we need to support apprenticeships, whether people train at EEF or other colleges in my constituency and elsewhere.

My hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) and others have rightly raised the issue of charging points, as well as our lack of battery manufacturing capacity. I think we should also be looking at our capacity to enable connection to the grid. At the moment, those who want to supply energy—solar, wind or any other sort—to the grid face a 10-year waiting list. I know that you are shocked to hear that, Madam Deputy Speaker, and I am sure that others are too. To reach the levels of charging points and battery manufacture the UK needs to support a huge increase in EV manufacturing, we have to resolve that. All of us want better-engineered vehicles to save future generations from poisonous gas emissions. To do that, people need to be able to connect to the grid to power those charging points, but they cannot do so now and will not be able to in the foreseeable future, not for 10 years. I ask the Minister to speak to whoever is in charge of that, to make the case, because this is a huge need for the whole industry.

[Dr Luke Evans]

The hon. Member is absolutely right. As a Parliamentary Private Secretary at the Department for Energy Security and Net Zero, I am acutely aware of those issues. I know that the Government put in place a Minister for the grid to look at that side of things. I believe that very soon a report will come out, which I am hopeful will answer the UK’s questions about connecting to the grid.

[Mr Mahmood]

I thank the hon. Member for making that point. I would like to discuss with him the new industries that want to come in and do that, but rather than a report, I want to see some action and delivery. The country cannot wait another 10 years.

Triumph used to manufacture at a factory in Small Heath in Birmingham, where my father used to work. He was a setter-operator on a lathe that produced Triumphs in my constituency. The British industry was then taken over by lots of imports from Japan—we were not able to compete—but I am glad that British industry is now able to compete. That is what I want for the future of the British engineering and manufacturing industry: for us to be able to compete in those areas so that we can show the world that we are the world leaders.

Dana in my constituency is very competitive in the motor vehicle industry. It supplies axles and other engineering components to the car industry. I want continued support for Dana and for it to have more apprentices and to be able to move forward. The key issue is skills, skills and more skills. Unless we get those skills, we will not be able to do what we want.

About six or seven years ago, Truflo did not have the capacity. It kept on members of staff until they were 70, rather than them retiring. Truflo then worked with the University of Birmingham to get apprentices on board to close the gap and get engineers to work for the company. It is the only valve company that works to the quality required to work in submarines—once a submarine is underwater, if it does not have the best equipment, it becomes very serious.

We have a great industry in the west midlands and we have great people doing great work. All I want is to ensure that in this debate we discuss the issue of engineering and manufacturing, so that we can move forward and see how we can deliver. I would like the Minister to follow through on that, and perhaps we can discuss some of the issues afterwards.

The real issue is, as my hon. Friend the Member for Stalybridge and Hyde said, that we need to get British industry working, and we need to work together to move forward. That can be done by the engineering and manufacturing sector. Green energy relies on the engineering and manufacturing sector. We do not want to have to import wind turbines; we can make them in the UK. We can make solar energy and hydrogen energy in the UK, and so we should. Let us enable the people in our industry to move forward on these issues. Let us support our industry and move forward.

Thank you for allowing me to speak, Madam Deputy Speaker. You know that I have another appointment very soon, so I will terminate my speech at this point. My hon. Friend the Member for Stalybridge and Hyde has introduced a fantastic and much-needed debate so that we can discuss this important issue.

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[Ian Lavery]

I will not get into the football analogies that have been drawn on today. I am pleased that my hon. Friend has visited my constituency and seen for himself the potential that Energy Central has in Northumberland. Whether it is the two interconnectors or the Catapult facility in Blyth for renewable energy, we have a lot going on in the Blyth estuary region and, of course, in Wansbeck.

We need to give people some hope. We need to give my constituents the same sort of hope that everybody else is getting. I have sat patiently listening to Members who have lots of jobs in their constituencies. They are very happy with those jobs and the fact that things could not be any brighter. The hon. Member for Bosworth (Dr Evans) said, “Come and have a look at Bosworth. It is fantastic.” I say to him, “Come and have a look at Wansbeck and see how that stands as compared with Bosworth.” I am delighted for the people of Bosworth, but he should be coming to my constituency to see the difference. It is just not fair.

[Dr Evans]

When it comes to the automotive industry, we should be talking about the whole of the UK. The hon. Gentleman speaks passionately about the site of the gigafactory. I know it well, because Britishvolt spoke to me about the site and what it has to deliver. I am more than happy to support him and his constituents, because this is about what the UK can offer to the rest of the world. The automotive industry here is a leader in doing that, so I will champion that, because it happens to be in my constituency. I would love to see it thrive in the hon. Gentleman’s constituency, too, so that we have jobs and prosperity across the UK.