GM chief warns UK over parts scarcity

The head of Vauxhall has warned that the UK car industry faces serious problems because of a scarcity of parts manufacturers in Britain.

Nick Reilly, the chief executive of General Motors in Europe, said the lack of components being made in the UK has made it "more difficult [for companies] to be competitive".

"Frankly, I think it's the most critical issue facing the automotive industry in the UK," he told the BBC. "It's not enough to have Nissan, Toyota, Vauxhall manufacturing the products because we'll never be able to compete with another country where the suppliers are surrounding the car plants."

Mr Reilly's comments came as it emerged that Jaguar Land Rover is considering building a new engine plant in the UK, which could result in the creation of at least 1,000 jobs.

Elsewhere in the automotive industry, Saab admitted over the weekend it was unsure about when it would be able to restart its output following its deal with the European Investment Bank (EIB).

The Swedish company's production has been halted for more than a fortnight after it was unable to pay a number of suppliers. Although an agreement has been reached with the EIB, a spokesman for Saab said the "tough conditions" meant it was a "a little uncertain" when the car manufacturer would be able to resume production.