TISC PN31 0506



Telephone: 020 7219 5777/5779

PN 31 of Session 2005-06


Reasons for success and failure in the UK automotive sector

The Trade and Industry Committee is today announcing an inquiry into the automotive sector, and in particular the reasons why some companies have a thriving manufacturing base in the UK while others are closing their UK plants. It will build on aspects of the previously announced inquiry into MG Rover.

The Committee will be considering:

  • the principal reasons for the different records of success;

  • how companies arrive at investment and closure decisions in this country and abroad;

  • the role played by trade unions in the industry;

  • the appropriate response of Government to closure announcements or speculation;

  • and what the Government can do to help the workforce and the supply chain if plants close.

In relation to the last of these issues, the Committee intends to build on the evidence received for its inquiry into the effectiveness to date of the recovery package and taskforce for the MG Rover workforce and the West Midlands more generally after the company went into receivership.

The Chairman of the Committee, Mr Peter Luff, MP, said:

"The recent announcements of the closures of Peugeot's plant in Ryton and TVR's factory in Blackpool €” and the strong possibility of similar future announcements €” have led the Committee to broaden its inquiry into the Government and MG Rover into a more general examination of the state of the automotive industry in the UK and what, if anything, the Government could or should do to support it.

"We will be taking forward the evidence sessions that we had already planned on lessons to be learned from the experience of the MG Rover Taskforce. Given the urgency of these issues, we have postponed decisions on the other aspects of the MG Rover inquiry."

The Committee invites written evidence to this inquiry to be submitted, as a MS Word document, by e-mail to tradeindcom@parliament.uk with a single hard copy sent to the Clerk of the Committee at the address above by 5.00 pm on Friday 2 June 2006.

The Committee will begin its oral evidence hearings on Tuesday 23 May. Details of witnesses for this and subsequent dates will be announced shortly.

For further information please call the Committee Office on 020 7219 5777/5779.

9 May 2006