AUSTRALIA’S automotive sector has gained momentum as global automakers increase investments in the UK.
The industry has grown by more than a quarter in the last year and a half, according to data compiled by Bloomberg.
The UK has already been home to some of the most aggressive investments by the global auto sector, with GM, Ford, Toyota and Volkswagen among the biggest.
Ford, which owns the iconic F-150 pickup truck brand, said in January it would spend $8 billion on UK manufacturing in 2020, with its biggest investment coming from the UK’s Jaguar Land Rover Group.
The move is part of a global push to diversify away from traditional markets in favour of emerging markets.GM, which last year announced plans to build an assembly plant in Britain, is the latest to add to its European footprint.
The auto giant will build its new $3.4 billion (€3.7 billion) new assembly plant at Woking, near the city of Leeds, and will spend $7.7 million to expand its plant in Wales, where it employs more than 500 people.
The investment follows GM’s recent acquisition of a factory in Romania, which will be used to produce its Cadillac CT6 luxury crossover.GM said it would also invest more than $2 billion to build a plant in India, where the company plans to produce the Cadillac XTS.
The latest expansion will help drive demand for the company’s new XTS sedan, which is set to debut in the U.S. market next year.GM’s investment will help it increase sales of the XTS and help it offset losses in its existing operations in the United States.