Part of the debate – in the Senedd at 2:20 pm on 7 March 2017.
Can I thank the Member for his question, and say that he is absolutely right? There is a role for the UK Government—a very significant role for the UK Government—to play in securing the future, not just of the Ellesmere Port Vauxhall site, but the whole of the automotive sector in the UK. Tomorrow, the UK Government, and the Chancellor in particular, could make a very warm statement regarding the investment in research, development and innovation in the automotive sector. We know that the business Secretary has already announced that significant resource will be made available for the development of new electric-motor-driven cars, and I believe that this poses a great opportunity for the Welsh automotive sector and the automotive sector that feeds the Welsh supply chain. I also believe that additional resource could be offered to the Ellesmere Port Vauxhall site if it is in a position to be able to identify a new product, or develop jointly a product with other parts of the combined company.
The Astra product at the moment only has approximately 24 per cent of local content. This presents a great opportunity as Vauxhall exits GM—and GM, in the past, have traditionally bought from within the EU. There’s an opportunity for a greater proportion of the supply chain to be captured by Welsh companies. For that reason, my officials were already in touch with Vauxhall prior to the announcement this week to discuss how companies in Wales can prepare themselves better to capture a greater degree of the supply chain work. This co-operation will continue with Vauxhall.
There are also opportunities in terms of exports, in particular to China, with Vauxhall being severed from GM. It’s the hope that the combined company may be able to explore additional export opportunities in the far east, which could drive up volume and demand in the Ellesmere Port site. We are willing to look at any levers available at our disposal, and any additional levers that would better secure the automotive and manufacturing sector in the UK. And it’s fair to say that there is a very strong cluster of automotive activity in the north-west and north-east of Wales that actually benefits many companies right across the north Wales strip, and through into mid Wales. We wish to work with colleagues across the border, with local authorities, and with Members of Parliament as well, with whom I spoke yesterday, to develop that cluster even stronger and to ensure that it has a very bright future as we leave the European Union.