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My Lords, we understand the anxiety that this announcement causes among workers, families and communities in the area where JLR is based. We are determined that Britain will remain a world-leading automotive nation. Our industrial strategy reduces electricity costs, commits £4 billion to DRIVE35 to advance manufacturing and research, and allocates £2 billion to boost electric vehicle demand. We are strengthening supplies through the DRIVE35 transformation programme and securing better access to markets in the EU and the United States, thereby protecting investment and jobs.
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I thank my noble friend the Minister for that Answer. He obviously recognises the importance of our auto components industry, which underpins our car assembly plants and is also a significant part of our exports and regional economies. He and the House will be aware of the significant impact of the hack at Jaguar Land Rover last year, which led to an overall drop in GDP but also had a much more significant effect on the West Midlands economy. So, with those current problems at JLR, which the Minister has identified, what are the Government doing to support the supply chains and the British car plants, and would not one measure be for public bodies to prioritise buying British vehicles built by British workers?
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My Lords, my noble friend rightly reminds us that cyber attacks affect companies of all sizes, and this is a stark reminder that JLR is not only the manufacturer but also the anchor of the supply chain. We are working with JLR, lenders, local partners and suppliers to safeguard viable businesses, improve access to finance and strengthen cyber resilience. On procurement, we will use government purchasing power strategically to ensure that British manufacturers can compete fairly and that social value, resilient supply chains and UK capability are recognised in purchasing decisions.
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My Lords, the Minister will be aware that the Chinese Government and their motor manufacturers are eyeing up the European car market, flooding it with millions of good-quality cars which are undercutting our own domestic market—an issue the noble Lord, Lord Spellar, addressed in his excellent Question. What assessment has the Minister made of the Chinese Government’s strategy of flooding the European car market, and is he aware that Volkswagen has closed down its state-of-the-art plant in Dresden?
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My Lords, we are closely monitoring the growing presence of Chinese electric and hybrid vehicles and are engaging directly with UK manufacturers. My loyalty lies with Range Rover: mine is almost five years old now, so I am waiting for the electric version to come on to the market. We have strengthened our trade remedies to respond more swiftly to evidence of harm, and the Trade Remedies Authority can investigate when industry brings forward credible evidence of what these Chinese cars are doing to the sector.
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My Lords, the best support the Government could give to the car industry is to end the uncertainty in the European car market, which is hindering investment and could decimate our industry in the near future. Should we not be rejoining the single market and the customs union to provide a strong, countervailing force, with Canada, against Trump tariffs and unfair Chinese competition?
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My Lords, our position is very clear: we are where we are and we are not joining the customs union. The Government will defend the interests of British manufacturers and our deeply integrated UK-EU automotive supply chains. Where the proposed IAA “Made in Europe” risks disadvantaging them, the Secretary of State and Trade Minister have raised our concerns directly with EU member states, their commissioners and MEPs. The proposal is not final, and we continue to work with the industry to assess its impact. Now is the time for like-minded partners to strengthen growth, resilience and economic stability.
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My Lords, Jaguar partly blames the ZEV mandate for these job cuts, a situation that I am glad to say the Government acknowledge with their current consultation aimed at reducing this mandate to protect up to 200,000 automotive jobs. However, do the Government regret the recent announcement that Jaguar is going to build the new Freelander—originally built in Halewood—in China, where Chery, whose sister company, Jaecoo, the top-selling Chinese brand in Britain, is making and selling Range Rover lookalikes for less than a third of the Range Rover price? Stealing the family silver is one thing; giving it away is another. How is that good for British jobs?
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My Lords, the Government have no intention of intervening in individual business decisions. What Jaguar Land Rover decides and who its partners are is entirely the responsibility of Jaguar Land Rover. Having said that, we work very closely with JLR, the trade unions and local partners to ensure that no affected worker is left without support. We will continue working with unions, community leaders and the company itself to ensure that all workers will be treated fairly when the consultation happens, and that no worker will be left without support.
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My Lords, these job losses at Jaguar Land Rover are deeply concerning, and our thoughts are with the employees affected and their families. We on these Benches have repeatedly been warning the Government over the past two years that higher energy costs, damaging steel tariffs, the increase in employers’ national insurance contributions, and the Employment Rights Act are making it harder and more expensive to do business in Britain. With one of our most important manufacturers now cutting thousands of jobs, will our new Prime Minister start to overcome the damaging policies of his predecessor and restore Britain’s competitiveness? Otherwise, we will have more jobs and investment being driven overseas.
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My Lords, with due respect to the noble Lord, I think that is a really simplistic point. The scale and speed of global transformation in this sector is being faced by every automotive manufacturer, not only in this country but elsewhere in the world. Manufacturers everywhere, and I mean everywhere globally, are responding to fierce competition now that new technologies and changing international trading conditions are in place. That is precisely why this Government have committed £2.5 billion to DRIVE35, providing long-term support for research, development, manufacturing and the transition to zero-emission vehicles. Our objective is to secure investment and high-value production here in Britain. I point out for the benefit of noble Lords that JLR has said it will seek voluntary departures wherever possible and still plans to invest £15 billion to £18 billion in this country. It has faith in this country, and I hope noble Lords across the aisle will also have faith in this country.
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My Lords, we would all wish Jaguar Land Rover to succeed, but does the Minister recognise that more than that of any other country in the G7, the UK economy is now overwhelmingly focused on high-value services, which give the economy nine times what the manufacturing sector currently does?
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My Lords, the United Kingdom is a trading nation—we trade with every country across the world. We are doing free trade deals right across the globe, the recent one, obviously, being with India and with the Gulf countries. We are a trading nation, and we have to support our manufacturers and companies to trade seamlessly and easily throughout the world.
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My Lords, I begin by declaring an interest in that, like the Minister, I own a Jaguar Land Rover car. The Minister said that government procurement should be competitive, but in France or Germany, for example, no government Minister would get in a foreign-made car. What more can the Government do centrally on procurement, but also in insisting, for example, that local authorities and police forces buy British?
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I assure my noble friend that in the Department for Business, Innovation, Science and Trade, all our ministerial cars are manufactured in the United Kingdom. I am sure that I speak for other departments as well.