Major Jaguar Land Rover suppliers have urged the government to help automotive manufacturers move into aerospace and defence, warning that large-scale car production in the UK faces long-term decline, and setting out a practical route forward for an industry supporting thousands of jobs.
In an open letter to the prime minister, chancellor and West Midlands mayor Richard Parker, industry leaders argued Britain's automotive supply chain was "not in decline" but "in the wrong market".
JLR to Cut 4000 Jobs as Sales Fall and Tariffs Hit
The intervention comes nearly a fortnight after JLR announced plans to cut 4,000 jobs, which signatories called "the first visible crack" in a supply chain supporting about 183,000 manufacturing jobs.
For workers and firms in the sector, the letter sets out a clear alternative. Evtec chairman David Roberts, speaking on BBC Politics Midlands, said manufacturers already possessed a "very big opportunity" to redirect existing skills, factories and investment into the UK's expanding aerospace and defence sectors, rather than waiting for a predicted "decade of decline" in car production to take hold. "We want to take action today rather than wait for that to happen," he said.
JLR Looks to NATO Countries for New Defender Demand
The letter, signed by firms representing more than 8,600 direct employees and the Confederation of British Metal Forming, which represents about 75,000 workers, made three specific asks: lower industrial energy costs, support to help firms qualify for aerospace and defence contracts, and a dedicated West Midlands programme to accelerate the transition.
"The capacity exists. The people exist. What is missing is the bridge," it said.
Suppliers also pointed to growing competition from abroad. According to the Society of Motor Manufacturers and Traders, Chinese-owned brands accounted for about 15 per cent of new car registrations in the UK in 2025 and 2026, with overseas rivals benefiting from lower energy costs, greater automation and, in some cases, government subsidies.
JLR Profits Fall as Tata's Jaguar Bet Reaches Crucial Stage
The Treasury said it recognised the uncertainty facing workers, noting that business secretary Jonathan Reynolds had met JLR and trade union representatives following the redundancy announcement, first reported by the BBC.
It pointed to existing support, including the £2.5 billion DRIVE35 programme for electric vehicle production and planned reductions in industrial electricity costs.
