MIRA boss: UK car industry is ‘up for the fight’ to survive

“So what that presents is a chance for new entrants to move quickly. They've got no baggage, they can pick and choose what they do; they're typically bringing good innovation. And really, what we're seeing is that the combination of that global innovation [plus] our heritage of engineering and testing in the Midlands – primarily at MIRA – is a great combination, because the innovators don't have that full vehicle knowledge.”

Addressing the challenges currently facing the UK automotive industry, Allen said: “Yes, there's lots of concerns about cost-effectiveness long term and energy plans in the UK, but actually getting products to market quickly is the most important thing – and if we can accelerate their development and give them a path to production in the UK. Clearly, there's a lot of support needed to do that.

“But we stand a chance. We're up for the fight. We're seeing a great trend and [the companies are] all here for the same reason. They're here for the engineering heritage, the full vehicle knowledge and the access to talent.

“The talent in the UK is second to none. We've certainly got major global competition, but I think really the strength and depth and quality of engineering and technical skills in the UK is right up there globally. So I'm optimistic: we produce something like 80,000 graduates within a 100-mile radius in the Midlands. That's amazing.”

Allen’s comments come amid a wave of pessimism from prominent industry figures.

Mike Hawes, chief executive of lobby organisation the Society of Motor Manufacturers and Traders (SMMT), recently warned that government inaction is making the UK an undesirable location for investment.

Andy Palmer, former Aston Martin CEO and Nissan COO before that, is firmer. He recently told BBC Radio 4’s Today programme that the collapse of UK automotive is “not only possible, it’s probable”. 

“You're into a period of either you compete – and enter into something like the British [Inflation Reduction Act] – or you manage the decline of the British industry,” said Palmer.

Using hydrogen as an example for the UK’s shortfall in government investment, Allen said: “The French government is investing €30bn (£26.4bn) in nitrogen, which is three or four times more than Germany announced [€7bn or £6.2bn]. We say, well, there's a path towards £400m or £500m. So we're already orders of magnitude lower than Europe.”

Allen added that “if we're serious about automotive, we’ve got to up our game in terms of investment” and that “we really need help with the big things that make a difference, which is infrastructure, energy infrastructure and a path to stability”.

Energy infrastructure is a particular concern for the UK’s manufacturers. A survey published by the SMMT in June 2022 found that car makers’ bills had increased by 50% over the previous year – due in part to a pause in purchasing Russian gas following the country’s invasion of Ukraine. The survey also noted that UK-based manufacturers spend £50m more on energy annually than their counterparts in the EU.

Unable to rely on government support alone, Allen also called for more collaboration across the industry, saying: “We need to be far more pragmatic on how we do this. And I think it's just a scaled version of MIRA in that it only works as a community; it doesn't work individually for anybody.