Issues Confronting the UK Car Industry.


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Issues Confronting the UK Car Industry Educator Neil Barlow CEO, Northwest Car Organization together Foundation Northwest Car Partnership (NAA) was set up in 2004 to bolster the car producing industry in the Northwest of Britain
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Issues Facing the UK Automotive Industry Professor Neil Barlow Chief Executive, Northwest Automotive Alliance

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Background Northwest Automotive Alliance (NAA) was set up in 2004 to bolster the car fabricating industry in the Northwest of England NAA is a bunch association taking into account a partnership of significant organizations in the Northwest including Leyland Trucks (Paccar), Vauxhall Motors (General Motors), Jaguar/Land Rover (Ford) and Bentley Motors (Volkswagen) Strategy focussed on various regions: Supply chain advancement Workforce improvement Innovation Internationalization

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Overview of Presentation The Global Market Challenges Facing the Industry UK Response The Future

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World Passenger Car Production

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Proportion of World Market

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Car Production (2005)

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Net Profit/Loss 2005

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UK Sector The UK has the most different scope of auto makers of any nation on the planet – General Motors, Ford, Nissan, Toyota, BMW, Volkswagen, Honda and Peugeot. UK has an extensive variety of master makers serving corner markets, for example, games and track day autos, excellent imitations and even a land and/or water capable auto producer Over a thousandâ automotive part suppliers are fabricating in the UK The car fabricating division contributes around £8.4bn enhanced the economy which represents 1.1% of UK GDP The business in the UK utilizes about 237,000 individuals and has a yearly turnover of some £46bn It represents 9.5% of aggregate UK sends out (72% of aggregate UK auto generation is sent out).

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Global Issues Over limit Legislation Competition

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UK Issues The larger part of UK based vehicle makers incorporating those with extraordinary profitability records are making misfortunes There is a noteworthy switch by VMs and level one suppliers to source parts and materials from minimal effort nations Many UK suppliers are missing the mark in key regards: lacking interest in both plant and gear and item advancement poor client center deficiency of abilities UK Employment Law makes it less demanding to close UK assembling plants ??? Vitality expenses expanding considerably Location re rest of Europe – we are still an island !

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UK Response AIGT Report 2002: National Supply Chain Groups Automotive Academy Centers of Excellence Foresight Vehicle Program

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Supply Chain Groups £15m support from DTI coordinated by £15m organization money/in-kind Support for a host organization to work with it’s UK based suppliers to enhance the entire\'s intensity store network (least of 8 suppliers) Main yield – enhanced worth included and QCD changes 50 Supply chain gathering projects set up with somewhere in the range of 400 + organizations partaking Averaging an eight fold degree of profitability per production network venture

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Automotive Academy Industry drove Set up to advance comprehensively aggressive measures of preparing and expertise improvement for the UK car industry Developed particular projects for the business: Lean Manufacturing Business Improvement Techniques Team Leader Training Graduate Development Automotive Leaders Executive Program ISO/TS16949 Working with suppliers to fabricate their ability and capacity to convey these projects in UK areas

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Centers of Excellence Low Carbon and Fuel Cell Technologies, Transport Telematics and Technologies for Sustainable Mobility.

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Foresight Vehicle Program Engine/Powertrain Hybrid, Electric, Alternatively Fuelled Vehicles Software, Sensors, Electronics and Telematics Advanced Structures and Materials Design and Manufacturing Processes

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The Future More mind boggling autos, fabricated quicker and less expensive: Restructuring of the store network - more mix, mergers and organizations together More outsourcing of sub-gathering Continued improvement of flex plants More separated item More utilization of regular stages Shorter lead times Diversification into account, protection, auto contract, adjusting and renting

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Future Hybrid Vehicle ????

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Any Questions ? .:tsl

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