The boss of Unipart has told the BBC he is considering moving investment away from Britain, as UK companies could not “compete on a level playing field”.
Oxford-based Unipart employs more than 8000 people and makes vehicle parts and components, as well as managing supply chain logistics.
Unipart Group executive chairman, John Neill, said he is being drawn to new subsidies in Europe and the US. “I’ve asked our team to think very carefully about our investment strategy in the US and our US operations and whether we should be pivoting more into those markets and possibly also into our European companies,” he told the BBC.
He said America’s Inflation Reduction Act (IRA), passed in 2022, offered companies “a completely game changing set of incentives and fiscal support”.
The IRA offers hundreds of billions of dollars in grants, loans, tax incentives and subsidies to support the production of goods and services such as electric vehicles, semiconductors and green energy. In return, the company must manufacture in the US.
Britain’s investment strategy ‘not clear’
“No one envisaged that the Americans would change the rules to the extent they have, it just seemed kind of un-American in a way. But they have,” Mr Neill told the BBC.
“For us to invest we need to understand what Britain’s strategy is and what our regulatory framework is going to be. And we’re not clear about any of that.”
Today (27 April), Unipart announced its financial results for the year ended 31 December 2022, which showed an 11.6 percent increase in turnover to £917.3m. Profit before interest and tax increased by 27.1 percent to £12.2m.
This follows contract wins with JCB and Airbus, which will see nearly 1000 people join the company in 2023. Meanwhile, its electric vehicle battery production facility has begun making battery packs for the Lotus Evija hypercar.
Darren Leigh, who was appointed Unipart Group CEO in 2022, said: ”We continue to be a proud British company and we continue to invest in the UK.
”We have a long history of partnering with our customers, and we are delighted to have been awarded a number of contracts in 2022 with both new and existing customers, particularly in the UK.
”New business wins with JCB and Airbus, and the new Mercia Park aftermarket logistics operation we are opening for Jaguar Land Rover, will see around 2000 people joining Unipart’s highly engaged workforce this year.”
Britain ’out in the cold’
Mr Leigh’s comments about pride and investment will do little to allay fears that Britain’s lack of strategy will result in investment going overseas.
Writing for The New European, Jonty Bloom said: ”Let’s face it, the UK is a bit-part player in many of these industries and now it is a bit-part player caught between two giants.
”The car industry in the UK seems to be in terminal decline. While the EU right on our doorstep is rapidly expanding its vehicle battery capacity, the UK let BritishVolt go to the wall with hardly a whimper.
”The UK does not have the money or even the political will to respond and seems intent on making things worse for industry not better. It is out in the cold and it is getting colder.”
Sources: BBC and The New European
graham+cox
do not blame them
this country is falling apart and running a business has become almost impossible
lazy workforce tax etc etc