JLR suppliers warn Britain’s car industry is in the wrong market

JLR suppliers warn Britain’s declining car industry is in the wrong market

Automotive firms want help switching from cars to aircraft and defence

Britain's automotive industry is warning that the country's huge car-making supply chain could face a long-term decline unless manufacturers are helped to move into aerospace and defence.

The warning comes less than two weeks after Jaguar Land Rover announced plans to cut 4,000 jobs, with major suppliers now urging the government to help redirect factories, skills and investment towards industries where demand is expected to grow.

In an open letter to the prime minister, chancellor and West Midlands Mayor Richard Parker, industry leaders argued that Britain's automotive supply chain was “not in decline” but “in the wrong market”.

‘The first visible crack’

The signatories described the JLR redundancies as “the first visible crack” in a UK automotive supply chain supporting around 183,000 manufacturing jobs.

Companies including Coventry-based Evtec, Solihull-based Artifex and the Confederation of British Metal Forming say suppliers are being squeezed by high energy costs, overseas competition and car manufacturers increasingly sourcing components abroad.

David Roberts, chairman of Evtec, said high-volume car production in Britain could be entering a decade of decline.

His argument is that waiting for factories to disappear would be the wrong strategy.

“We want to take action today rather than wait for that to happen,” he told BBC Politics Midlands.

From car parts to aircraft and weapons

The suppliers believe many of the skills already inside Britain's automotive industry can be transferred to aerospace and defence manufacturing.

Precision engineering, metal forming, advanced manufacturing and complex supply chains are common to all three sectors.

But the companies say they cannot simply switch overnight. They need help qualifying for aerospace and defence contracts, investment support and lower industrial energy costs.

Their message to government is blunt: “The capacity exists. The people exist. What is missing is the bridge.”

The group wants a dedicated West Midlands programme to accelerate the transition, potentially turning the region's existing automotive manufacturing base into part of a much broader industrial strategy.

China adds to the pressure

The warning comes as Chinese-owned car brands continue to increase their presence in Britain.

According to the Society of Motor Manufacturers and Traders, Chinese-owned brands accounted for about 15% of new car registrations in the UK across 2025 and 2026.

British suppliers argue that overseas competitors can benefit from lower energy costs, higher levels of automation and, in some cases, government support.

That creates a difficult environment for UK manufacturers already facing the enormous cost of shifting from traditional engines to electric vehicles.

Government points to EV investment

The Treasury says it recognises the uncertainty facing workers and has already announced support for the automotive sector, including grants, measures to reduce industrial electricity costs and investment in electric vehicle production.

Business Secretary Jonathan Reynolds has also met JLR and trade union representatives following the redundancy announcement.

The government points to the £2.5bn DRIVE35 programme as evidence that it is backing the future of British car manufacturing.

But the suppliers are proposing something broader.

Rather than simply trying to preserve Britain's existing car industry, they want the government to help repurpose it.

That could mean a painful transformation for the West Midlands — but the manufacturers argue that keeping factories, skilled workers and industrial expertise alive may be more important than keeping every factory producing cars.

Britain's automotive industry may not be disappearing. It may be changing direction.

SOURCE