UK Auto Suppliers Urge Government to Pivot to Aerospace and Defense

Major suppliers to Jaguar Land Rover (JLR) have urged the UK government to facilitate a transition into the aerospace and defense industries, citing concerns about the long-term viability of large-scale automotive manufacturing in the country. The call comes as JLR recently announced plans to cut approximately 4,000 jobs.

In an open letter addressed to the prime minister, chancellor, and West Midlands Mayor Richard Parker, industry leaders argued that the UK's automotive supply chain is not inherently declining but is instead "in the wrong market." The signatories, representing businesses that employ over 8,600 people directly and including the Confederation of British Metal Forming, which covers about 75,000 workers, believe that high-volume car production in the UK is facing a decade of decline.

David Roberts, chairman of Evtec, one of the signatories, stated on BBC Politics Midlands that manufacturers are looking to "take action today rather than wait for that to happen." He highlighted a "very big opportunity" to redirect existing skills, factories, and investments into the UK's growing aerospace and defense sectors. The letter posits that automotive suppliers already possess many of the necessary capabilities for supporting aircraft, defense equipment, and military vehicles.

Suppliers point to several challenges facing the sector, including rising energy costs, increasing competition from overseas manufacturers, and vehicle makers sourcing components internationally. According to the Society of Motor Manufacturers and Traders, Chinese-owned brands captured about 15% of new car registrations in the UK in 2025 and 2026, illustrating the competitive landscape. Competitors abroad, the suppliers argue, benefit from lower energy costs, greater automation, and sometimes government subsidies.

The open letter specifically calls for government support in the form of lower industrial energy costs, assistance for firms to qualify for aerospace and defense contracts, and a dedicated program within the West Midlands to accelerate this sectoral shift.

A Treasury spokesperson acknowledged the uncertainty for workers and stated that the government is supporting the automotive sector through grants, reduced energy costs, and investment in electric vehicle production. The government indicated that manufacturers are expected to benefit from measures aimed at lowering industrial electricity costs and supporting sector investment. Business Secretary Jonathan Reynolds has reportedly met with JLR and trade union representatives following the redundancy announcements.