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Rising electricity prices cost car brands £90m by 2022


British carmakers are facing £90m in losses this year – as soaring energy prices have wreaked havoc on households.

According to the Society of Motor Manufacturers and Traders (SMMT), with electricity 59% more expensive than the EU average, rising industry electricity bills are putting the UK’s car sector at a disadvantage in the region. compete. It claims that the UK car industry could save almost £50m if it bought electricity in the EU and not here.

The irony of the cost issue is that it comes at a time when UK manufacturers are investing billions of dollars in electrical technology to meet the government’s 2030 deadline for phasing out pollution. cars run on gasoline and diesel.

SMMT chief executive Mike Hawes said help with the UK’s rising energy costs was now the industry’s “number one request”.

“Helping with energy costs now will help keep us competitive and become a boon for the sector, stimulating investment in innovation, R&D, training – all reinvested. invest in the UK economy.

“With the right support, the sector can accelerate the transition to net zero, supporting jobs and growth across the UK and exports globally.”

An SMMT report, “From Full Savings to Full Charge”, lays out five priorities including short-term assistance with energy costs, boosting the Automotive Transformation Fund, boosting tax credits, and implementing Full cooperation and trade EU-UK agreement. It also wants to see a reform to apprenticeship money.

At stake in the transition to automotive net zero are 123,500 jobs, 5,000 companies, total sales of £21.2 billion a year and exports worth £7 billion, the report said. The SMMT estimates that up to 22,000 jobs and £11 billion in revenue currently rely on internal combustion engine (ICE) technology at risk of being left behind.

Now read Latest UK fuel prices here



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