IssuesFacingtheUKAutomotiveIndustry.pptVIP

Issues Facing the UK Automotive Industry Professor Neil Barlow Chief Executive, Northwest Automotive Alliance Background Northwest Automotive Alliance (NAA) was established in 2004 to support the automotive manufacturing industry in the Northwest of England NAA is a cluster organisation based on an alliance of major companies in the Northwest including Leyland Trucks (Paccar), Vauxhall Motors (General Motors), Jaguar/Land Rover (Ford) and Bentley Motors (Volkswagen) Strategy focussed on a number of areas: Supply chain development Workforce development Innovation Internationalisation Overview of Presentation The Global Market Challenges Facing the Industry UK Response The Future World Passenger Car Production Proportion of World Market Car Production (2005) Net Profit/Loss 2005 UK Sector The UK has the most diverse range of car producers of any country in the world – General Motors, Ford, Nissan, Toyota, BMW, Volkswagen, Honda and Peugeot. UK has a wide range of specialist producers serving niche markets such as sports and track day cars, classic replicas and even an amphibious car manufacturer Over a thousand?automotive component suppliers are manufacturing in the UK The automotive manufacturing sector contributes around ￡8.4bn added value to the economy which accounts for 1.1% of UK GDP The industry in the UK employs some 237,000 people and has an annual turnover of some ￡46bn It accounts for 9.5% of total UK exports (72% of total UK car production is exported). Global Issues Over capacity Legislation Competition UK Issues The majority of UK based vehicle manufacturers including those with outstanding productivity records are making losses There is a major switch by VMs and tier one suppliers to source parts and materials from low cost countries Many UK suppliers are falling short in key respects: inadequate investment in both plant and equipment and product development poor customer focus shortage of skills UK Employment Law make