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Government 'must show continued support for auto industry'

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Government 'must show continued support for auto industry'

Tuesday, 20/4/2010 01:01
The next government must continue to provide support for the UK automotive industry and supply chain for the good of the wider economy, it has been claimed.

According to the Society of Motor Manufacturers and Traders (SMMT), the winner of next month's election should back measures to improve skills and encourage investment in the sector.

Paul Everitt, chief executive of the organisation, said the industry has overcome the worst of the recession and now has a chance to exploit a strengthening economic recovery.

"The UK has a great opportunity to strengthen its automotive supply base and capitalise on the transition to ultra-low carbon vehicle technologies," he commented.

Mr Everitt added that the next government must continue to re-build business and consumer confidence, fund further automotive research and introduce policy measures that support growth and innovation within the industry.

According to the SMMT, the automotive sector is vital to the UK economy, supporting more than 800,000 jobs and creating an annual turnover of £52 billion.

The industry was among the worst hit during the recession last year, prompting ministers to introduce the vehicle scrappage scheme in an attempt to increase sales.

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