UK carmakers warned that without significant government backing, the industry won’t be able to compete with the US and the European Union, which are offering unprecedented incentives for electric-vehicle production.
(Bloomberg) — UK carmakers warned that without significant government backing, the industry won’t be able to compete with the US and the European Union, which are offering unprecedented incentives for electric-vehicle production.
“With other parts of the world turbocharging their support for the zero-emission vehicle transition, we need to step up to compete in this global race,” said Mike Hawes, chief executive officer of the Society of Motor Manufacturers and Traders said Monday in a statement.
The US has seen a slew of automakers and suppliers queuing up to build electric vehicle plants after President Joe Biden’s administration passed the Inflation Reduction Act last year to boost domestic manufacturing.
The EU has responded with incentives in its Green Deal Industrial Plan.
Those government programs come at a time when the UK car industry is already struggling. Auto manufacturing in the country slumped to a 66-year low in 2022 as carmakers shuttered plants or announced plans to move production elsewhere.
Now, there are signs the UK government is starting to act: last week, BMW AG was said to be considering investing £500 million ($603 million) in its Oxford plant, which would include a £75 million grant from the government.
“Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding R&D and a highly skilled and productive workforce,” Hawes said.
“We must not squander these advantages.”
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