According to a recent report released by the UK Automotive Council British cars are being made with more British sourced components as the UK automotive industry’s renaissance continues apace. The figures revealed that that domestic component makers sold 19% more products to UK vehicle producers last year than in 2013.
Business Secretary Vince Cable explained that the figures are an important step in the right direction for the UK automotive supply base. Currently around one third of the components in a UK-built car are domestically sourced, compared to more than 90% in the mid-1970s. However, vehicle manufacturing in the UK is undergoing a renaissance – British car production has increased by more than 50% since 2009 – and this is creating new opportunities for domestic suppliers.
“Our automotive industry has seen a resurgence in recent years and that success means work of some £1 billion has returned to the UK. This is testament to the strength and capability of our supply chain manufacturers and will no doubt lead to new jobs and further growth.” Mr Cable commented.
Mr Cable pointed out that Nifco – a plastics supplier to vehicles makers based in Stockton, North East England – was on the brink of closure in 2004. However, the business has since turned around with increased demand and funding support leading to the construction of 2 new factories in 2012 and 2014.
“There is a renewed optimism and confidence in the UK automotive industry and this is reflected in our future projected growth. Our order book is full for the next 5 years and we have a clear strategy to grow the business into a £75 million company by 2016 and £100 million by 2018. We are moving our offer on, working closer than ever with our customers to develop products that help them to innovate.” Managing Director of Nifco UK Ltd, Mike Matthews commented.
Mr Cable pointed out that the latest model of the Vauxhall Vivaro van, which started production last year, contains more than twice the number of British sourced components at 40% than its predecessor’s 16%. This means an extra £600 million will be spent with British suppliers, allowing local companies to expand – and in some cases it has saved whole factories.