UK automotive industry targeting manufacturing records

UK automotive manufacturers have set their sights on breaking all-time manufacturing records by the end of 2015. The confidence is fuelled by multi-billion pound investments committed to the country over the past 18 months that will see production expanded, new models introduced and thousands more people employed.

According to figures announced ahead of the SMMT International Automotive Summit, the UK could surpass the 1972 record of 1.92 million cars produced, with over 2 million units rolling off domestic manufacturing lines in 2015. This landmark relies on eurozone stability and ongoing government support and collaboration. Achieving annual car manufacturing volumes in excess of 2 million units would equate to an increase in manufacturing output of more than 50 per cent over 2011’s level of 1.3 million units.

“The UK automotive industry is leading economic recovery with increased manufacturing output, growing export volumes and new jobs being created on the back of major international investment in the sector. Our engineering expertise, workforce flexibility and renowned motoring heritage, combined with top level collaboration between industry and government, makes the UK an important location for the global automotive industry,” said Paul Everitt, SMMT’s Chief Executive.

Economic uncertainty across the eurozone is a factor that all businesses are watching closely. To a certain extent, the UK is insulated from the worst of demand fluctuations as it exports 40 per cent of its products to countries outside Europe. However, it is clear that the ongoing stability and success of UK automotive is linked closely to demand from the continent.

The SMMT International Automotive Summit was held in Canary Wharf. The 300-strong delegation will heard keynote speeches from Dr Ian Robertson (HonDSc), Member of the Board of Management of BMW AG, Sales and Marketing BMW and Peter Tyroller, Member, Board of Management, Robert Bosch GmbH. In addition, the day will close as Business Secretary Vince Cable describes how government is committed to supporting the sector and ensuring growth is sustained.

UK automotive manufacturing facts:

• Previous UK highest manufacturing volume: 1972 – 1.92 million cars. 
• 2015 UK manufacturing potential volume: over two million cars. 
• Over the first four months of 2012, car manufacturing was up 11.8% versus 2011. 
• More than £5.5 billion has been invested in UK automotive in the last 18 months. 
• On average, the UK manufactures 1.5 million cars and commercial vehicles and over 2.5 million engines annually, 80% of total vehicles and 70% of engines are exported. 
• UK automotive is a vital part of the UK economy and typically generates around £50 billion in annual turnover, delivering around £10 billion in net value-added. 
• Automotive is the UK’s largest sector in terms of exports and generates around £30 billion of annual export revenue. In a typical year, the sector exports to over 100 markets worldwide and accounts for around 11% of total UK exports. 
• The automotive industry employs more than 700,000 people across manufacturing, retail and aftermarket sectors with approximately 145,000 people directly employed in manufacturing.    
• UK automotive is at the forefront of the low carbon agenda, investing in R&D and new technologies that will deliver ever cleaner, safer and more fuel-efficient cars. 

The UK is home to:

• Seven volume car manufacturers. 
• Three volume commercial vehicle manufacturers. 
• Eleven bus and coach manufacturers. 
• More than 25 niche and specialist vehicle manufacturers. 
• Eight Formula One teams and a large concentration of motorsport firms – found in Motorsport Valley.