MANAGING TECHNOLOGY
In the driving seat
The UK motor industry is thriving, but to remain a key global player we must build on
our achievements by developing a more strategic approach, says Paul Everitt
THE UK is the most diverse and productive
manufacturing location in Europe, as well as
as a global centre of excellence for engine
development and production. The industry
employs 180,000 directly in manufacturing,
and eight global vehicle makers have plants
here — more than anywhere else in Europe.
Ranging from major volume car makers,
van, truck and bus builders, to specialist niche
manufacturers, the industry is supported by a
sophisticated supply chain which includes
many of the world’s major component
producers, technology providers and design
and engineering specialists.
Last year the UK motor industry made over
1.7 million vehicles — with a record volume of
over 1.3 million sent for export. Nissan in
Sunderland, for example, had a very successful
2007, with the Qashqai model (designed,
developed and manufactured in the UK)
helping the plant achieve record production of
over 350,000 cars — making it the UK’s largest
car producer and exporter. But that is just one
example.
There are around 4,000 firms involved in
the UK automotive supply chain, ranging from
global players to small and medium-sized
businesses. This sector exports over £5bn
worth of goods each year, 75 per cent of that
destined for mainland Europe.
The world’s major automotive companies
are attracted to the UK by an unrivalled
combination of engineering excellence, a
skilled and flexible workforce and a
government that strives to create an excellent
business environment for companies to
prosper. One of the strengths of our motor
industry is its ability to continuously adapt,
evolve and create new opportunities in the
face of change.
A combination of heritage, diversity and
agility places the UK motor industry in good
shape to face the unremitting pressures of
change needed to survive into the 21st century.
A major challenge faced by all manufacturing,
not just the auto trade, is that of aligning
its technologies, products and business
performance to deliver customer value in a
global setting subject to relentless cost-cutting
pressures.
Regulation poses yet further challenges.
Environmental protection and safety legisla-
40
FutuRe
of automotive technology
The UK-designed Qashqai helped Nissan’s Sunderland plant achieve record production last year
tion already influence the number and type of
vehicles being manufactured, marketed and
purchased. Currently in Europe, the focus is
on harnessing the environmental benefits
while still retaining competitive advantage.
Each vehicle made in this country requires
half the energy to produce than it did five
years ago, saving an estimated 700,000 tonnes
of CO 2 a year. Total combined waste to landfill
is down by more than half, from 80,399 tonnes
in 2000 to 39,862 in 2006.
Technological innovation has helped car
and commercial vehicle manufacturers slash
CO 2 and air quality emissions from vehicles.
New diesel cars, for example, emit 95 per cent
less soot from the exhaust than those made
15 years ago and average new-car CO 2 has been
cut by 13 per cent since 1997.
The Society of Motor Manufacturers and
Traders (SMMT) welcomed the recent
announcement that business minister Shriti
Vadera has launched an initiative to support
and develop the UK motor sector, and is
delighted that Richard Parry-Jones has been
appointed leader of the New Automotive
Innovation and Growth Team (NAIGT).
SMMT will work closely with Vadera and
the Department for Business Enterprise and
Regulatory Reform (BERR) to create a plan
that builds upon the strengths of the sector
and addresses the challenges facing the
industry. The automotive industry is at the
forefront of process improvement, delivering
economies of scale and low unit costs, despite
the increasing complexity of its products.
In the past 20 years, there has been almost a
revolution in the way vehicles are manufac-
tured in the UK. Production processes have
been streamlined and methods put in place to
try and eliminate waste. There is a focus on
quality, cost and delivery which has made the
UK a worthy manufacturing rival of any
country in the world — based on efficiency,
quality and unit cost.
By developing a more strategic approach to
the future of our automotive sector over the
next 15 years, government, industry and
others can safeguard and grow investment
in this important manufacturing area. The
UK motor industry is thriving and is
committed to remaining a key player in global
manufacturing.
Paul Everitt is the chief executive of
The Society of Motor Manufacturers and
Traders
the EnGIneeR 21 APRIL–4 MAY 2008