THE era of handouts from the State could well be over – but it seems the car makers are not seeking them, anyway.
Automotive Council co-chair Richard Parry-Jones says that, contrary to widespread belief, the UK car industry does not want (and is not dependent on) more Government aid.
Instead, it wants ‘consistent, aligned, positive messages. Rhetoric is far more important than people realise.’
He told all this to delegates at the SMMT International Automotive Summit on Wednesday – right before business secretary Vince Cable pronounced the era of Government aid was, well, over. Well timed, then, you could say…
Cable will be receptive to Parry-Jones’ thoughts; they sit alongside each other in chairing the Automotive Council, following the departure of Peter Mandelson. It’s actually meeting today, incidentally, where RPJ will force home his message at the Summit.
‘’We are not asking for more!’ said the ‘Ford-do-fun-cars legend’ at the SMMT Summit. ‘But we want the existing money (that’s been promised) well spent – with focus.
‘2010 is not about more funding, but about more intelligent use of it.’
Besides, the Automotive Council never actually demanded handouts anyway, despite what the mainstream impression may be. What about scrappage, then? That was ‘necessary action to bridge a gap.’ Emergency times need emergency measures.
‘We now have a much leaner, fitter industry. What we need now is a strategic approach to our sector.’
Cable ‘heavy hitter’
He hopes to have a receptive ear in Cable, he added. It is ‘promising’ that ‘another heavy hitter has been appointed as business secretary.
Mandelson was very influential, said Parry-Jones. ‘The initial signs from the new coalition administration is that it wants continuity.’
But the burning question on every delegate’s lips – what about the £5k green car grant? Surely this has already been promised? Is it right that this is now in doubt?
Well, none of the speakers really wanted to focus too much on it, not least Cable, who later said ‘no decision has yet been made.’
No, the UK car industry is not looking for any more handouts. But how much of what we’ve done so far in promoting the country’s ‘decisive global role’ in the fledgling low-carbon agenda has been based on the £5k grant arriving in 2011?
In the next few weeks, we’ll find out…
+ Is Parry-Jones right?
+ Is Cable right to be throwing car maker plans in doubt?
+ What are electric cars all about, anyway?
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Is that a totally convincing claim though? I wonder if Nissan or Mitsubishi share the view that state aid or intervention is not required – there may be a lot of unsold i-MiEVs and Leafs without the £5K grant.
On the topic of “not looking for handouts” – did the motor industry not look for one to save LDV?
As for the £5k grant, is it not true that Nissan “sold out” of Leaf cars shortly after they started taking orders? If it sold out that quickly, then maybe it was too cheap and it didn’t need the subsidy?
Personally, I think the prospect of the UK becoming a home for green cars is quite exciting and could be a great boost to the UK automotive industry. Toyota are building the hybrid Auris here now in a plant that has already received government grants in the past. Nissan will be building the Leaf in Sunderland that has also been guaranteed some government funding.
I personally think the government should perhaps go ahead with this “green grant” but not apply it to vehicles that are built outside the UK and certainly not outside the EU. Apply it to the Leaf, but only those cars that are actually built in Sunderland. Apply it to the Vauxhall Ampera, but only if it’s built in the UK.
This is tax-payers money and I’m quite happy for it to support the promotion of the UK automotive industry and increase employment in vehicle manufacturers and suppliers. Throwing £5k at a car built on the other side of the world to boost their economy? No thanks.
I think the UK becoming a world green car ‘IP hub’ is extremely exciting, too. We have the talent here – just need to shout about it a bit more. I’d love to think that Nissan, Toyota and others have given the idea some momentum, and the Government will acknowledge this with the £5k grant. It’s going to be such a tiny drop and, as you say Ben, will ultimately generate jobs and cash: I’d be baffled if they chose to U-turn here!
Mitsubishi i-MiEV will be very, very expensive without it…
R