Government has committed to create an Automotive Council to strengthen engagement with industry and set a long-term plan for its development. This follows its endorsements of the New Automotive Innovation and Growth Team’s (NAIGT) recommendations on the development of the sector over the next 20 years.

NAIGT, consisting of a cross-industry group of senior executives, produced the report earlier this year setting out a framework for industry development to ensure it maximises the opportunities presented by the transition to a low carbon agenda, and to promote the UK as a key player in a global industry.

Government has today announced its support for the report including:

• Automotive Council – a senior level council with representation from government and industry to oversee the development of a co-ordinated strategic approach to the sector.

• Test Bed UK – active support for a major demonstrator programme for ultra-low carbon vehicles.

• Supply Chain Council – feeding into the Automotive Council and focused on the development of a strong automotive supply base in the UK.

• Strategic support for automotive research and development, through the NAIGT’s technology roadmap.

“Government support for the NAIGT’s key recommendations signals a fundamental shift in the relationship between industry and government. It is an explicit recognition of the strategic national importance of the UK motor industry and its role in generating jobs and prosperity for the long term. I am delighted that Richard Parry-Jones has agreed to co-chair the Automotive Council,” said Paul Everitt, SMMT chief executive. “Industry is operating in a challenging environment but I am confident that as global growth returns we are well placed to exploit new and exciting opportunities.”

The report states that the Automotive Council will meet for the first time before the year’s end and will be tasked with transforming the UK business environment for automotive – attracting inward investment for the research and development of new technology, funding for collaborative testing and research facilities, and maximising incentives for the upgrading and development of existing research and manufacturing facilities.

Under the leadership of the Automotive Council, the Supply Chain Council will focus on the development of tier one companies in the UK, to identify any gaps in the supply chain and look for occasions to develop opportunities to supply components for emerging technologies.

This announcement recognises the strength and contribution the industry makes to the UK economy and the importance of committing to a long-term strategic plan for future growth and development in the sector.

In May 2009, the New Automotive Innovation and Growth Team released its report on the future of the UK motor industry. The report, compiled with input from a cross-section of senior industry executives considered the challenges and opportunities presented by the sector and set out a number of key recommendations to develop a strategic framework for future growth and development within the UK automotive industry.

The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.

The automotive industry is a vital part of the UK economy with £51 billion turnover and £10 billion value added. With over 800,000 jobs dependent on the industry, it accounts for 65% of total manufacturing turnover and invests £1 billion each year in R&D. In the last ten years, huge strides have been made to reduce the environmental impact of its products throughout the life cycle. Improvements in production processes mean energy used to produce each vehicle is down 24%, water use is down 45% and 57% less waste enters landfill sites. Average tailpipe CO2 emissions have also been slashed and are down 20% compared to 1999 levels. For more details, download SMMT’s tenth annual Sustainability Report or annual facts booklet from the SMMT website www.smmt.co.uk/publications.