The Boss of Vauxhall has warned that the car making future in the UK could be in serious danger unless the industry develops a supply chain based in Britain. The Chairman of GM in Europe, Nick Reilly, says the major problem facing the industry is the lack of a UK based parts manufacturer. This means that car makers in Britain are having to import parts and components.
Mr. Reilly told the BBC that this is causing car manufacturers to really struggle in a highly competitive market. The shipping costs and fluctuating currency rates further add to the problem, as well as there being a lengthy supply chain. He added that although the current Government understood the present crisis, it was due to bad decisions made years ago that Britain has lost most of its firms that made small components.
He also said that the industry had given up lots of businesses between the 1970’s and the 1990’s. This meant that at the Vauxhall factory in Luton they imported many components. As there is a major shortage of local suppliers. He also said that he thought this was the most critical of the issues facing the car industry in the UK.
He concluded by saying that it wasn’t enough having Vauxhall, Nissan and Toyota producing car in Britain, as they would never be able to compete against those countries who’s car plants are surrounded by components suppliers. After being forced into bankruptcy in 2009, General Motors is now in the majority control of the Canadian and US Governments.
