UK Car Industry Receives Boost with Peugeot Job Creation and BMW Investment

Strategic Insights -

The UK car industry has received a major boost with the announcement of Peugeot's Y2 million grant aid to create 900 new jobs at its UK base, with up to 200 of those jobs going to the long-term unemployed as part of the New Deal programme. Additionally, a senior BMW executive has expressed hope that a new family car will be made at Rover's troubled Longbridge plant in Birmingham.

Key Takeaways:

  • Peugeot will invest Y2 million to create 900 new jobs at its UK base, with 200 of those jobs going to the long-term unemployed as part of the New Deal programme.
  • Peugeot plans to boost weekly production at Ryton to over 3400 cars a week, up from the present 2500, with a further 2000 jobs to be created at supply firms in the Midlands.
  • BMW's industrial relations director Helmut Punke has expressed hope that the "tremendous progress" made at the Birmingham plant means it is now a viable proposition for building the new car in the UK.
  • The decision on whether the new model will be built at Longbridge is not expected until BMW's supervisory board meets later this month. The investment is vital to the long-term survival of Longbridge.
  • Up to 40,000 jobs could be secured if the new model is built at Longbridge.

Statistics:

  • Y2 million: the grant aid Peugeot will receive to create 900 new jobs at its UK base.
  • 200: the number of jobs for the long-term unemployed as part of the New Deal programme.
  • Y13m: the total investment project by Peugeot.
  • 3400: the planned weekly production at Ryton.
  • 2500: the present weekly production at Ryton.
  • 2000: the number of new jobs Peugeot plans to create at supply firms in the Midlands.
  • 18: the number of months the new shift will be operational at Ryton, starting from the launch of the new shift.

Sources:

  • "The Government is giving French car giant Peugeot grant aid of Y2 million to help create 900 new jobs at its UK base, it was announced today." - The source of the above quote is not explicitly mentioned, but it appears to be an internal news announcement or a press release.
  • Burrell, I. (none); "The Government is giving French car giant Peugeot grant aid of Y2 million to help create 900 new jobs at its UK base, it was announced today. And up to 200 of the jobs, at the Ryton plant in Coventry, will be given to long-term unemployed, as part of the New Deal programme." - No specific publication date is mentioned, but the text suggests that it is a recent announcement.