Car industry changes put jobs at risk says senior Nissan executive

May 7 2009 by William Green, The Journal

THE Government must make Britain more competitive to help the North East win the race to build electric cars, according to a senior Nissan executive.

Vice-president Jerry Hardcastle, who has responsibility for vehicle development, also said Nissan was looking to build electric vehicles in Europe but that no location decisions have been taken yet.

He spoke as a Government report into the car industry – which he helped draw up – yesterday warned 330,000 out of 384,000 direct automotive jobs could go abroad unless Britain takes the lead in low-carbon technology.

The report by industry experts and chiefs demanded an end to Government “ambivalence” towards the sector and lack of a long-term strategy compared to competitors like Germany, France and Japan.

It warned this lack of support and historic failures in sections of the industry had created a “negative image” for the UK as a place to do business among global automotive companies.

The British car sector was “vital but fragile” and needed short-term support – potentially in temporary wage support – to stop permanent job losses with other countries “swiftly and loudly” backing their home industries, according to the report.

But it found a “tremendous” future for the UK car sector if the Government and industry join forces through a high-level automotive council to ensure the country leads the world in low-carbon technology.

“Without a strategic, planned and coordinated approach, the industry in the UK will be hollowed out further, the low carbon agenda will bypass many players, and the industry will be irreparably weakened,” said the report.

The Government is being urged to provide cash incentives to boost research and development rather than just tax breaks, establish a new energy fund to provide cash for carbon reduction projects, protect the UK’s flexible labour market and buy British products.