UK Auto Still Has A Long Road Ahead

David Bailey, Professor – Aston Business School
 
News that Nissan is to assembly three new battery electric vehicles (BEVs) at its Sunderland plant, with a need for more British-made batteries from its partner Envision has been welcomed as a much-needed shot in the arm for UK automotive.
It follows good news from JLR owner Tata that it will invest in a battery gigafactory in Somerset, Stellantis beginning electric van production at Ellesmere Port, and MINI’s announcement that BEV versions of the fourth generation MINI will be made at its Oxford plant.
All of this raises the hope that UK has finally turned the corner after years of bad news. Recall that after a wave of investment, back in 2016-17 UK auto was humming, producing some 1.7m cars a year and with output forecast to top 2m to 2.2m a year over time.
Investment then stalled in the wake of the Referendum, and the industry was slammed into reverse, hit by a ‘perfect storm’ of Brexit induced uncertainty, the shift away from d...