The Automotive Council says cars built in the UK are made from more British parts than ever before
According to the Automotive Council, cars built here in the UK are now made from more British parts than ever before.
In 2011, just 36% of parts for cars built in the UK were sourced here at home, however that figure is much healthier today – 44% of parts for British made cars are now sourced in the UK.
The sharp increase forms part of a concerted ‘re-shoring’ effort to help inflate the value of the automotive industry in the UK to British companies.
This does help increase productivity thanks to a bigger supply of parts being readily available in the UK and may lessen the effect of currency variations that arise when making cars here in Britain.
The increase of British sourced parts may also go a long way in helping the car industry manage with any Brexit linked trade implications.
The ‘re-shoring’ push has been hailed a success by the Automotive Council. Since they were formed back in 2009, car production in the UK has grown by 72%, whilst the turnover for car part manufacturers here in Britain has shot up by £3.7billion in six years.
Greg Clark, Secretary of State for Business, Energy and Industrial Strategy said although progress achieved so far was encouraging, “there are many more opportunities for us to exploit”.
He indicated that government support would be anticipated in “maintaining the international competitiveness of the UK automotive sector”.
Chief executive from the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, explained how ‘re-shoring’ takes considerable time but will continue to help improve the automotive sector here in the UK.
Mr Hawes believes the domestic supply chain is the moral fibre of the automotive industry here in Britain, adding that “its health is crucial to the success of the whole sector”.
However, the fact that cars made in the UK are becoming more British is great news for the UK automotive industry, it will hopefully encourage car manufacturers to build motors here in the UK thanks to our growth in home-sourced parts.
Who knows? Britain could reach 50% of locally sourced parts for British made cars in the not too distant future!
For more information regarding our car leasing services and special offers please click here, or give us a call on 0844 846 4007.