John Roberts, Head of Automotive and Roadside at Colliers International comments on today’s UK Government announcement to boost green economic recovery in the automotive sector:
“Today’s UK Government announcement regarding its £73.5 million Advanced Propulsion Centre funding to boost green economic recovery in the automotive sector is welcome news for the future of the industry. It will certainly help to develop the technology required to enable cars to be more efficient, having a greater range, and will ultimately contribute to keeping the UK on the path to net zero emissions by 2050.
“However, from a motor retailer and manufacturer perspective , this funding doesn’t help them now because this money is set for forthcoming projects in years to come. The funding announcement should have also addressed the here and now – which is all about getting the economy going and ensuring that people are mobile and in essence, enabling manufacturers and dealerships to sell an attractive proposition to their customers at this point in time . The sustainable automotive industry agenda is vital, and we do need a strategy that encourages the public and stakeholders to move away from more polluting vehicles to greener cars. A solution could be for the Government to consider introducing a new scrappage scheme, similar to what was announced in the 2009 UK Budget, and/or offer assistance with VAT in relation to electric or hybrid vehicles, to encourage British motorists to purchase a new more efficient or an alternative fuel vehicle to drive the more polluting ones off the road – this is will generate sales now.”