Six motor industry supplier have received a total of £5.4 million government funding as part of efforts to strengthen the UK’s automotive supply chain.
And business secretary Vince Cable told a CBI event yesterday, that another £10m would be made available in another round of funding.
Cable said the money would help to lock in sustainable growth in the supply chain. “On average only a third of parts going into vehicles manufactured here are sourced from the UK. With a potential £3 billion in opportunities identified for UK based vehicle and engine manufacturers, we need to strengthen our supply chain to take advantage of this opportunity.”
The winners of the first round of funding are: Benteler; Corby, Brose, Coventry; Getrag, Halewood; Gestamp, Sedgefield; Nifco, Stockton-on-Tees; Unipres, Sunderland.
The government-industry investment includes £2.7 million from the Employer Ownership Fund automotive supply chain competition. The fund enables employers to design training projects that can address skills shortages holding back their business, providing 50 per cent match funding to the company.
SMMT chief executive, Mike Hawes said: “Strengthening the UK supply chain is essential for the future prosperity of the whole automotive industry. We have to secure skilled jobs for long-term growth so this funding will ensure that UK suppliers are well placed to take advantage of the potential £3 billion of new business opportunities available to them.”
The news comes on the same day that Ford announced a £190 million investment in its engine plant at Dagenham, which is supported by £8.9 million from the government’s regional growth fund, Ford is creating 318 new jobs connected with this investment.
Applications for the second round of the Employer Ownership Fund for the automotive supply chain – worth £10 million – will open from 3 November 2014.