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Major suppliers to Jaguar Land Rover (JLR) have appealed to the UK government to assist automotive manufacturers in transitioning their operations towards the aerospace and defence industries. They have raised concerns about a long-term decline in large-scale car production within the country. In a letter addressed to the prime minister, chancellor, and West Midlands Mayor Richard Parker, key figures in the automotive supply chain stated that while the sector itself is “not in decline,” it is operating in the “wrong market.”
This call to action follows JLR’s recent announcement to cut 4,000 jobs, marking a significant disruption in a supply chain that supports approximately 183,000 manufacturing jobs in the UK. The Treasury acknowledged the challenges faced by workers in the automotive sector and emphasized ongoing government support via grants, lower energy costs, and investments geared towards electric vehicle production. JLR maintains its global headquarters in Coventry and operates manufacturing plants in Solihull, Wolverhampton, and Halewood.
Industry representatives from firms such as Coventry-based Evtec and Solihull-based Artifex, along with the Confederation of British Metal Forming, highlighted that suppliers are grappling with rising energy prices, intensified overseas competition, and increasing tendencies from vehicle manufacturers to source components internationally. David Roberts, chairman of Evtec, expressed on BBC Politics Midlands that high-volume car manufacturing in the UK is expected to decline over the next decade. He stressed the urgency of proactive measures, stating, “We want to take action today rather than wait for that to happen.” Roberts sees a “very big opportunity” in redirecting manufacturing skills, facilities, and investments towards the expanding aerospace and defence sectors in the country.
The open letter emphasizes that many automotive suppliers already possess relevant capabilities required for producing aircraft, defence equipment, and military vehicles, but they face barriers in making this shift. It asserts, “The capacity exists. The people exist. What is missing is the bridge.” To facilitate this transition, manufacturers have called for reduced industrial energy costs, assistance in obtaining aerospace and defence contracts, and the establishment of a West Midlands program focused on accelerating entry into these sectors. The letter was signed by executives representing over 8,600 employees, in addition to the Confederation of British Metal Forming, which represents around 75,000 workers.
Amidst these developments, the Society of Motor Manufacturers and Traders noted that Chinese-owned automotive brands accounted for roughly 15% of new car registrations in the UK during 2025 and 2026. Suppliers argue that overseas competitors benefit from more affordable energy, advanced automation, and in some instances, government subsidies. Responding to the situation, a Treasury spokesperson stated that Business Secretary Jonathan Reynolds had met with JLR and trade union representatives following the job cuts. They highlighted the government’s £2.5 billion DRIVE35 program, designed to support electric vehicle production, alongside measures aimed at reducing industrial electricity costs and promoting sector investment
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