Rising electricity prices to cost car brands £90m in 2022
UK car-makers are facing a £90m hit this year – from the surging energy prices that are already causing havoc with households.
With electricity 59 per cent more expensive than the EU average, the hike in the industry’s electricity bill is putting the UK automotive sector at a competitive disadvantage, says the Society of Motor Manufacturers and Traders (SMMT). It claims that the UK car industry could save almost £50m if it bought its electricity in the EU rather than here.
The irony of the cost whammy is that it comes at a time when UK manufacturers are investing billions in electric technology to meet the government’s deadline of 2030 for the phasing out of new petrol and diesel cars.
SMMT chief executive Mike Hawes said help with the UK’s spiralling energy costs was now the industry’s “number one ask”.
“Help with energy costs now will help keep us competitive and be a windfall for the sector, stimulating investment in innovation, R&D, training – all reinvested in the UK economy.
“With the right backing this sector can drive the transition to net zero, supporting jobs and growth across the UK and exports across the globe.”
An SMMT report, “From Full Throttle to Full Charge”, sets out five priorities including short-term support with energy costs, a boost to the Automotive Transformation Fund, enhanced tax credits and full implementation of the EU-UK trade and co-operation agreement. It also wants to see a reform to the apprenticeship levy.
The report says that at stake in the transition to automotive net zero are 123,500 jobs, 5,000 firms, a collective £21.2 billion in turnover every year and exports worth £7 billion. The SMMT estimates that as many as 22,000 jobs and £11 billion of turnover are currently reliant on internal combustion engine (ICE) technology are at risk of being left behind.
Now read the latest on the UK’s fuel prices here…
New Mercedes-AMG One hypercar will be built in Coventry
Production of the Mercedes-AMG One – Merc’s hugely complex F1 engine-powered car [..]
New 2022 Alfa Romeo Tonale SUV: UK prices and specs revealed
The new Alfa Romeo Tonale is now on sale in the UK, [..]
New Kia XCeed facelift gets £22,995 price tag
The Kia’s XCeed crossover has been facelifted for 2022 bringing a fresher [..]
‘Rodin and Moke are set to shake up the car industry’
Car company bosses come in all shapes and sizes. Elon Musk is [..]
Porsche Taycan sets new Nurburgring electric production car record
Porsche has won countless races around the Nurburgring in its history, and [..]
Sporty Hyundai Ioniq 5 N spotted testing
The Ioniq 5, our Car of the Year in 2021, is set [..]
All-electric Mercedes A-Class replacement could still be on
The A-Class was the fourth best-selling vehicle in Britain last year and [..]
New 2022 Porsche GT4 RS Spyder spotted again
Porsche’s track-honed GT4 RS is set to receive a drop-top Spyder variant [..]