Welsh Government has pulled support for 10,000 people and 130 companies who are members of the Welsh Automotive Forum, writes Robin Roberts.
The 27 year old trade cluster has published its intention to voluntarily dissolve at the end of this month when funding ceases through Industry Wales, which is also being closed down by Welsh Government.
WAF was established in 1999 to assist local suppliers and businesses threatened by the breakup of Rover Group in the Midlands which had itself been created out of the disintegration of British Leyland.
Welsh Government was then so concerned about the implications for local jobs and businesses that it created WAF to support, advise and lobby for help, both in the UK and abroad.
At the time about 30,000 people worked in the automotive sector in Wales and there were over 200 companies supplying parts either as main Tier1 operations or sub-assembly T2 and T3 businesses, often legacy businesses from former BL operations.
Under the chairmanship of internationally respected economist Prof Garel Rhys CBE, WAF became a major body for the automotive sector in the UK and its skills and abilities were recognised around the world.
WAF played a roll in helping the industry through the rebuilding of British car making in the first years of the 21st century and with Prof Rhys guidance the economic downturn from 2008.
WAF’s longest serving chief executive, Tim Williams, said dissolution of the trade body in Wales was sad indeed and the end of three decades of WAF and support to the automotive sector.
WAF promoted upskilling, investment and modernisation through Accelerate Wales, Pro-Act and helped secure Covid support, alongside general support and advice and supply chain networking over the years.
It held Autolink Network events and not only represented the Welsh cluster at international motor shows and trade events but also advised Welsh Government and incoming investors with introductions.
It helped secure millions of pound of investment in the Ford Bridgend Engine Plant and played a big part in bringing Aston Martin to St Athan in 2016 after the MoD pulled out of its plan for the South Wales RAF base.
In a statement on its website, WAF said, “The Board of the Welsh Automotive Forum has resolved to dissolve the organisation following the end of the current financial year.
“All options to secure a sustainable alternative operating model have been carefully considered. No viable solution has been identified.
“The Board has therefore concluded that an orderly, solvent wind-down is the most responsible course of action. The Forum will complete its remaining activities and administrative processes before entering formal dissolution. The company will close in a solvent position.”
The dissolution of the Forum does not reflect a weakening of the sector. Wales remains a highly manufacturing-intensive economy with a strong advanced manufacturing base.
UK Government Budget decisions and the US tariffs introduced last year have added to the sector’s problems.
“These announcements come at a time when manufacturers across the Wales are already facing immense challenges: transition to Net Zero, global supply chain pressures, energy prices, labour costs and persistent skills shortages.
“While we welcome continued commitments to R&D and innovation, it was disappointing to hear a Spring Statement that offered little direct support for manufacturers, and in fact confirmed fiscal measures that could reduce consumer demand for vehicles – right when we need to be encouraging uptake of new technologies to support the transition to net zero.”
The WAF statement went on, “The market transition is not keeping pace with political ambition. The automotive industry has the expertise, capability and drive to deliver growth – and green growth at that – but we urgently need the right policies to make that vision a reality.
“The US is a long-standing and critical export market for UK-built vehicles. Rather than escalating trade barriers, we must explore mutually beneficial ways to strengthen ties, support innovation, and grow transatlantic investment and employment.”
The Welsh Automotive Forum is calling on the UK and devolved governments to:
- Work collaboratively with Welsh Industry on policies that support manufacturers during these challenging times
- Engage in immediate, high-level discussions with US trade counterparts to avoid harmful tariffs
- Provide targeted support to protect supply chains, safeguard jobs and sustain investment.”
The Welsh Government has been asked to comment.
