Global vehicle manufacturers are placing greater focus on building stronger UK-based supply chains, according to new research.
A study commissioned by the Society of Motor Manufacturers and Traders (SMMT) found that most car makers with UK plants are interested in sourcing locally-built components.
Firms cited reduced logistics costs, favourable exchange rates and greater reliability as the main reasons behind their desire to develop UK-based supply chains.
The attraction of the UK's labour flexibility also featured highly among the reasons given, as did the availability of new technology for ultra-low carbon vehicles.
Commenting on the findings, SMMT chief executive Paul Everitt said there is "genuine interest and commitment" from manufacturers in building a stronger UK-based supply chain.
"The challenge is to convert this interest into firm orders. This will require a more collaborative approach between industry and government," he added.
Earlier this month, the SMMT revealed that new truck registrations fell to their lowest monthly total since July 1991 in January as logistics firms continue to put off new investment in the current financial climate.
