UK car industry seeks government help on energy costs as trading ‘gets worse’
The British car industry has called for help from the government with spiralling energy costs as one automotive boss said the sector was facing the most difficult operating environment he had seen.
Rising energy costs, persistent shortages of computer chips, and delays in parts caused by Covid lockdowns in important supply markets such as China and Russia’s invasion of Ukraine have combined to hit manufacturers.
Energy price increases will cost the UK car industry £90m this year, according to an estimate by the Society of Motor Manufacturers and Traders (SMMT), a lobby group. Carmakers do not count as an energy-intensive industry, so do not qualify for any help from government under existing programmes, although battery production does qualify.
Mike Hawes, the SMMT chief executive, said: “Energy costs are hitting consumers, but they are also hitting manufacturers, and we have no price cap.
“Addressing the UK’s high energy costs is the industry’s number one ask.”
Matt Windle, the managing director of Lotus, the British sports car maker owned by China’s Geely, contrasted strong demand with supply chain difficulties. Both Windle and Lawrence Drake, managing director of the lorrymaker DAF Trucks, said they have been forced to hold daily meetings to keep track of which parts have been delayed.
“The trading conditions are as [bad] as I’ve ever known, and they’re getting worse as well,” Windle said. “We are seeing pressure across the board, particularly in the bill of materials.”
The SMMT also warned the government against moves that would imperil the relative stability in the trading relationship with the EU, as it seeks to push through unilateral changes to the so-called Northern Ireland protocol, the post-Brexit rules governing
Read more on theguardian.com
