Bus manufacturer begins consultation on Scottish bus manufacturing jobs and accuses various government policies of favouring lower-cost imports

 
ADL claimed it had invested significantly in its UK facilities

 
Bus manufacturer Alexander Dennis Limited has announced a consultation process that could put 160 jobs at risk in Scotland, citing concerns over how government zero-emission bus funding has favoured foreign competitors in recent years.

The move comes despite record levels of funding from both the UK and Scottish governments aimed at promoting zero-emission buses. ADL argues that some of these policies have disproportionately benefitted competitors from “lower-cost” and “lower-security economies”. Chinese manufacturer Yutong has made inroads into the UK market in recent years, winning major zero-emission bus orders from operators such as McGill’s in Scotland as well as First Bus and Go-Ahead subsidiaries.

Paul Davies, ADL’s president and managing director commented: “We are proud to be headquartered in the UK with much of our workforce based here … We are deeply disappointed that the ongoing effect of various government policies is now threatening some of these jobs.”

Bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field

“Competition in itself is healthy, but when taxpayer money is spent with little domestic industrial, economic or employment benefit and bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field.”

ADL claimed it had invested significantly in its UK facilities, supported by its parent company NFI Group since 2019. These investments have bolstered local economies and strengthened domestic manufacturing.

However, the manufacturer claims that current policies and tariffs do not adequately support these efforts.

It added the 10% tariff applied to electric buses in the UK is lower than the 16% tariff for diesel vehicles, a disparity that Alexander Dennis argues undermines the competitiveness of British-made buses.

Additionally, ADL added, the UK’s Subsidy Control Act 2022 restricts the ability of authorities to grant subsidies that favour domestic manufacturers over international competitors.

In Scotland, UK-based manufacturers face further challenges due to the Fair Work First standards, which mandate higher employee welfare and safety requirements for companies receiving Scottish Government funding. Foreign suppliers are not bound by these standards, placing UK manufacturers at an additional disadvantage.

The company said these policies had led it to consider reducing its production capacity to align with its order book. The company has now initiated a statutory consultation process, placing 160 roles in Scotland at risk of redundancy.

We will continue our dialogue with governments to identify potential solutions to level the playing field, strengthen our industry and drive investments in local jobs and domestic supply

Paul Davies added: “While our statutory consultation has commenced, we will continue to do everything we can to save and protect as many jobs as possible. We will continue our dialogue with governments to identify potential solutions to level the playing field, strengthen our industry and drive investments in local jobs and domestic supply.”

 
This article appears in the latest issue of Passenger Transport.

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