Government announces agreement of Automotive Sector Deal
Mon 15 January 2018
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The Government has announced the conclusion of an Automotive Sector Deal with the UK automotive industry. The agreeement aims to build on the strengths of the UK auto sector and further develop the strong collaborative partnership established between government and industry.
The deal, originally announced as one of several sector deals comprising a part of the UK’s new Industrial Strategy late last year, sets out a vision for the public and private sector to work together to create a clean mobility sector. It presents a strategic vision for how both sides can continue to work together and is the first step towards establishing the UK’s leadership in meeting the 'Future of Mobility' and 'Clean Growth Grand Challenges', identified in the Industrial Strategy.
The deal secures joint investment and long-term commitments between government and industry in areas including the design and development of connected and autonomous vehicles (CAV), the research and development of battery technology and accelerating the manufacture of ultra-low and zero emission vehicles.
It includes up to £32 million of new joint funding for an industry-led supply chain competitiveness programme to help grow the UK supply chain and make it internationally competitive. The Government has also confirmed the latest £26.4 million investment, match-funded by industry, in three cutting-edge low carbon vehicle projects involving Ford, GKN and Jaguar Land Rover
Announcing the deal, Business and Energy Secretary Greg Clark said: "For decades, the UK’s automotive industry has powered our economy forward. Today, automotive firms from around the world choose to set up shop here, citing our history of excellence, skilled workforce and world-leading supply chains.
"In the next 10 years, the sector will see more change than in the previous hundred. From the engines that power our cars, to the way we control them and our attitudes to owning them, technology is changing what the industry looks like and where money can be made."
Mike Hawes, Chief Executive, SMMT said: "We welcome today’s automotive sector deal which will help this vital UK industry meet some of the many global challenges it faces."
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