Speedy delivery of supply chain support needed
Following the cyber incident affecting the UK’s largest automotive employer, the focus is now on restarting full production in a safe and secure manner – while safeguarding the wider supply chain which has been severely impacted. We know JLR is working around the clock to return to full operations as quickly as possible and it was positive news this week that some IT systems have been brought back online, with production expected to resume shortly. Until full production is restored, however, SMEs and smaller firms lower down the chain will struggle, particularly with cashflow, and must be supported, else there is a risk of lasting damage to this highly valuable sector of the economy.
Indeed, these businesses underpin not one company but many UK manufacturers – building to order, at pace, and delivering diverse skilled and jobs right across the country. That’s why it is right that government intervened this week to provide short-term assurance in the form of a £1.5bn UK Export Finance loan guarantee for JLR. This will help with JLR’s liquidity – and that of their tier one suppliers – but the speed of deployment is crucial and consideration must be given by government to additional measures that will directly support the lower tier suppliers.
SMMT is actively engaged with JLR and government, as well as our members via our Automotive Components Section, to help assess the impact and identify the additional appropriate measures that would ensure suppliers can bridge cashflow gaps and are resilient in the longer term. A package of measures may well be necessary as well as an accelerated delivery of the Industrial Strategy and DRIVE35 programme, which positioned automotive as a key driver of UK economic growth. In the medium to long term, we must also look for a robust national response to cyber crime, one that addresses its risks to the industry and the economy but which is affordable and deliverable to all businesses.
A thriving automotive sector is also necessary for boosting investment and trade – key pillars of the country’s growth agenda – and SMMT is continuing to support members to grow overseas with a flurry of events this Autumn. Fresh from a joint SMMT and DBT visit to China this week, with our members meeting potential partners and attending the World New Energy Vehicle Congress, next week we are leading a supply chain trade mission to explore the competitive Southeastern US market in Alabama and Tennessee. That will soon be followed by delegations to Equip Auto Paris and Automechanika Johannesburg, before another visit to the Czech Republic, which has its own competitive network of European OEMs and tier one, two and three suppliers. Places are still available so get involved here.
In more light-hearted news this week, we were pleased to announce Perrier and Sony award-winning stand-up comedian Milton Jones will perform at this year’s SMMT Annual Dinner. A one-liner and pun specialist, Jones has endeared himself to British audiences on TV shows including Mock the Week and Live at the Apollo, and has written and starred in several of his own Radio 4 series. With this year’s event expected to welcome around 1,000 guests from industry, government and the media, there is still an opportunity to book your ticket here while they last.