Birmingham City Council has called on the Government to provide targeted support for Jaguar Land Rover (JLR) and the wider automotive supply chain, following the announcement of 4,000 potential job losses.
Council leaders have warned that a failure to act could have significant consequences across communities in the West Midlands and hamper future economic growth within the city.
Councillor Roger Harmer, Leader of Birmingham City Council, said the potential job losses will impact households and communities across the city and region at a time when families are already struggling financially. He described the announcement as a setback as Birmingham looks to tackle high rates of adult and youth unemployment.
Economic Importance of JLR
Jaguar Land Rover contributes £8.7 billion to the West Midlands economy. The company directly employs over 20,000 people across the West Midlands. Through its supply chain, JLR is estimated to support almost 80,000 jobs across the West Midlands, and up to 200,000 jobs nationally.
Competitive Pressures in the Automotive Sector
Councillor Harmer highlighted the competitive pressure facing the automotive industry, pointing to the rapid growth of Chinese vehicle imports. Chinese imports have increased by 121% year on year and now account for around 21% of the UK car market. He noted that China provides substantial state backing to its automotive industry as part of a deliberate industrial strategy.
Harmer called on the UK Government to decide whether it is prepared to see strategically important domestic manufacturers compete on an uneven playing field, or whether it will take proportionate action to support investment, innovation and fair competition.
Council's Call for Government Action
Councillor Harmer pointed to previous Government intervention when strategically important industries faced danger, citing the safeguarding of steel production in Scunthorpe last year. He argued that the challenges facing JLR, the supply chain and the automotive industry are of equivalent strategic importance and require an equivalent response.
Birmingham City Council has written to the Secretary of State for Business and Trade, highlighting the strategic importance of JLR and calling for targeted intervention to protect jobs, preserve critical skills and strengthen supply chains.
