-
(Coventry North
East) (Lab)
4. What steps he is taking to support the automotive
industry. [905781]
-
The Secretary of State for Business, Energy and Industrial
Strategy (Greg Clark)
The automotive sector is one of our great success stories,
and our recently published automotive sector deal, as part of
the industrial strategy, sets out how we will continue to
support it in future. The partnership continues to deliver
results. In April, Vauxhall announced an investment of over
£100 million in its Luton plant to build the next generation
of Vivaro vans. Last month, the Society of Motor
Manufacturers and Traders, the sector body, reported that UK
van production had increased by almost a fifth compared with
last year.
-
Jaguar Land Rover is one of Coventry’s biggest employers.
Recently, JLR revealed its intention to make Coventry the
heart of its large-scale battery and electric vehicle
production plans. This is welcome news for my city. With that
in mind, what support can the Minister offer to Jaguar Land
Rover to ensure that Coventry becomes the centre for
large-scale battery and electric vehicle production?
-
I am grateful for the hon. Lady’s question and I completely
agree with her praise and support for that very important
employer. JLR’s expansion plans and its plans to
make electric vehicles in Coventry are
reinforced by the Faraday challenge, which is part of the
industrial strategy, and the national battery manufacturing
development facility is based at Warwick University’s campus
there to support that company and many others besides.
-
(South West Bedfordshire)
(Con)
Does the Secretary of State agree that it would be a cruel
irony if Volkswagen, the author of the emissions cheating
scandal, were to make large pay-outs in Germany and the
United States, which would help those countries to boost
their electric vehicle capacity, but made no similar pay-out
to help the United Kingdom move ahead in this area?
-
My hon. Friend is right that the consequences have to be
borne by the companies that cheated the system. We need to
make the transition to ultra low emission vehicles to make
sure that we lead the world in this area. Just a few weeks
ago, Toyota announced a big investment in the future of
mobility here in the UK, based on the commitments that we are
making as part of our industrial strategy.
-
(Warwick and Leamington)
(Lab)
21. Scrappage schemes have been used in the past to assist
businesses and industries in a transition. Has the Minister
costed a support package to scrap old diesel vehicles and
assist in a managed transition to renewable/alternative
energy vehicles? [905800]
-
The hon. Gentleman is right that we need to see a managed
change. Earlier, my right hon. Friend the Minister for Energy
and Clean Growth pointed out that the next generation of
diesel can play a big part in not only reducing greenhouse
gas emissions, but improving air quality. We will shortly be
setting out our proposals on how we make the important
transition to zero emissions across our vehicle fleet.
-
(Telford) (Con)
Hundreds of jobs in my constituency rely on the Jaguar Land
Rover supply chain. Will the Secretary of State tell the
House what he is doing to help car manufacturers to deal with
the uncertainty of Brexit and the fall in demand for diesel
vehicles?
-
I will. My hon. Friend is right to comment on the supply
chain. A big part of the automotive sector deal, which we
concluded with the sector, is to boost the proportion of
components that are sourced in the UK. This is a joint
commitment that we make, as part of the industrial strategy,
but she is also right to draw attention to the importance of
our continued ability to trade with the rest of the European
Union, free of tariffs and with low friction, so that we can
maintain the just-in-time model, which is so crucial to our
automotive sector.
-
Sir (Twickenham) (LD)
Following the loss of the Discovery model to Slovakia, which
was a decision at least partly influenced by Brexit, what
steps is the Minister taking to head off the risk to Jaguar
Land Rover’s exports to China where the rules of origin will
conflict with the interests of the company in the event that
we lose the customs union and we no longer have sufficient UK
content in the cars?
-
The right hon. Gentleman is wrong about the decision that was
made. In fact, it is a decision to prepare Solihull for the
next generation of the Range Rover and the Range Rover Sport.
JLR described that as a huge investment and a technology
upgrade in Solihull, so I hope he will welcome that. He knows
that the importance of making sure that we are able to
continue to trade—this includes recognising rules of origin
not just with the European Union, but around the world—is
vital for this company.
-
(Rugby) (Con)
Many intending to purchase new cars are unsure what type of
engine to opt for, partly as a consequence of Government
taxation policies. That is having a serious effect on the
British motor manufacturing industry. Will the Secretary of
State confirm that there remains a future for clean diesel?
-
I will indeed. We are not the only country that is seeing a
fall in the sales of diesel. As I and my right hon. Friend
the Minister of State have said, clean diesel and the new
generations of diesel engines have a very important role to
play in the transition to ultra low emission vehicles.
-
(North West Durham)
(Lab)
Contrary to what the Secretary of State has said, over the
past six months nearly 2,000 job losses have been announced
in the UK’s automotive sector. This week in the media we have
seen speculation about thousands of further redundancies
caused by a combination of factors, including worries about
possible consequences of a no deal Brexit and the absence of
the customs union. May I press the Secretary of State to set
out how the Government will work with business, industry
bodies and trade unions to ensure security of the automotive
industry and those employed in it both in the immediate
future and beyond UK’s exit from the EU?
-
We work very closely with the industry with great success.
Engine production in this country was up over 17% last year,
reaching 1 million engines. That is a record. Never in the
history of the British motor industry were more engines
produced than last year. Over the past year, the net number
of jobs that are being created—note the word “created”—in the
automotive sector in this country is 9,000.We have a very
good record of working closely with the industry to support
an industry that is not only very successful today, but will
continue to flourish in the future.
-
Mr (West Bromwich West) (Lab/Co-op)
The decision by JLR to invest in electric vehicles is very
welcome, but equally the decision to produce the
Discovery model in Slovakia is profoundly worrying. Does
the Secretary of State agree that it underlines the need
for tariff-free access for both cars and components in
the EU?
-
I agree with what the hon. Gentleman said at the end—of
course we need tariff-free access with a minimum of
frictions to these important markets—but I disagree that
this is not a sign of significant confidence. JLR is
investing in the next generation of vehicles. I hope he
will welcome that.
