Government and industry make £1bn commitment to develop low carbon technologies of the future
Fri 12 July 2013
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The Government and the automotive industry are to invest £500 million each over the next ten years in an Advanced Propulsion Centre to research, develop and commercialise the low carbon technologies for the vehicles of the future. The investment will mean the creation of 15,000 jobs over the next three years.
Backed by 27 companies in the sector, including supply chain companies, the commitment forms part of 'Driving Success' – an industrial strategy for growth and sustainability in the UK automotive sector published jointly by the Government and industry. It follows the recent plans for construction, aerospace and other key sectors to secure sustainable future growth in the economy.
With £6 billion of investment in the UK over the last two years, 1.58 million vehicles produced in 2012, and four out of five vehicles exported to 100 countries worldwide, the Government says that the automotive sector has transformed itself into a real UK success story.
The strategy sets out how the UK can secure the long term future of the industry over the next 20 to 30 years by growing the UK share of the value chain and by getting ahead of the game in research and development (R&D) on low carbon vehicles.
The report looks at four key themes:
• technology: how our vehicles are powered in future. From 2040 they will no longer have the traditional petrol or diesel engines as we know them
• supply chain: how government and industry can work together to grow the UK supply chain and win more overseas business
• skills: how the right skills are in place to build on the success of the sector
• business environment: how to maintain the UK’s competitiveness in the global auto industry
Business Secretary Vince Cable said: "The UK automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs. This has been achieved by government and industry working together.
"With the next generation of vehicles set to be powered by radically different technologies we need to maintain this momentum and act now. Our industrial strategy will ensure we keep on working together to make our automotive industry a world leader."
Professor Richard Parry-Jones, co-Chairman (with Vince Cable) of the Automotive Council said: "Businesses prefer consistency, stability and a clear path to the future in order to make investment plans. Driving Success, the automotive industrial strategy, sets out how industry will work together with the government over the next 20 or 30 years. This is critical to sustaining and growing a thriving UK automotive sector in a highly competitive global industry. "
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