GM invests £100 million in UK auto industry

The UK’s automotive industry has received a £100 million vote of confidence from US giant General Motors.

The announcement is positive news for the UK’s small and medium-sized businesses (SMEs) involved in parts manufacture for larger marques such as GM subsidiary Vauxhall. Only 12 months ago, the brand was facing the prospect of becoming a high profile victim of the economic downturn.

Speaking ahead of his first meeting as chair of the Automotive Council, recently established to maintain and promote the innovation and engineering expertise of the UK’s auto industry, Business Secretary Vince Cable said he was “delighted” at the investment.

Mr Cable said the investment shows that small parts manufacturers “can compete and win business from big corporate companies that trade all over the world”.

The investment has been particularly well received in the North West of England: historically the UK’s manufacturing heartland and, with key sector players such as Vauxhall and BAE Systems, still a hub for the automotive and aerospace industries.

The investment complements efforts by the North West Regional Development Agency (NWDA) to enhance supply chain performance and manufacturing innovation in automotive sector. North West manufacturing at large contributes £20.3 billion to the regional economy.

Bill Parfitt, Chairman and Chief Executive of Vauxhall Motors and GM UK, said: "The creation of the Automotive Council and the renewed focus on manufacturing has re-emphasised that the UK is a key sourcing location. We were able to award these contracts because of the excellent quality and lower transportation costs and because each contract showed a beneficial business case."

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