Raising Finance

Published

Cable announces funding boost for auto industry

2 Mins

Speaking about industrial strategy at a CBI event in London yesterday, Business Secretary Vince Cable revealed that six businesses will receive £5.4m of government industry investment to help them win and keep work with big automotive manufacturers.

A further £10m of government money will be made available in a future funding round, too, Cable announced.

“Through our industrial strategy we are working in partnership with the automotive sector as it goes from strength to strength, with today’s investment by Ford and the government in Dagenham the latest positive outcome,” he explained.

“Our new funding will build on this progress and help to lock in sustainable growth in the supply chain. On average only a third of parts going into vehicles manufactured here are sourced from the UK. With a potential £3bn in opportunities identified for UK based vehicle and engine manufacturers, we need to strengthen our supply chain to take advantage of this opportunity.”

The £5.4 million includes a £2.7 million government investment from the Employer Ownership Fund automotive supply chain competition which is then matched by the firms. The winners from the first round are

  • Benteler in Corby
  • Brose in Coventry
  • Getrag in Halewood
  • Gestamp in Sedgefield
  • Nifco in Stockton-on-Tees
  • Unipres in Sunderland

The news comes on the same day that Ford announced a new £190m investment in their engine plant at Dagenham. Supported by £8.9m from the government’s Regional Growth Fund, Ford will create 318 new jobs connected to the investment.

“Industrial strategy has been at the heart of the recovery over the past two years,” continued Cable.  We have made long-term commitments across a raft of areas from aerospace to automotive and international education.

“Over £10bn of long-term public-private investment is making Britain more capable and more competitive. Industrial policy isn’t a short-term fix and the enduring partnerships we have established with businesses will lock in sustainable growth.”

Applications for the second round of the Employer Ownership Fund for the automotive supply chain – worth £10m – will open from November 3, 2014.

Share this story

Hot 100 2014 – 68: Foundation Developments
Hot 100 2014 – 69: Focusrite Audio Engineering
Send this to a friend