Growth of 3% compared with 2015 correlates with £3.7 billion more turnover in the last six years

The percentage of parts in UK cars from domestic suppliers has grown to a new peak, at 44% compared with 41% in 2015. 

The Automotive Council has uncovered the new figures, which equate to a growth in the segment’s turnover of £3.7 billion since 2011, an increase of 41%.

The Council pegs the increase as the outcome of a long-term trend in the car industry, figureheads of which have expressed profound concern since the UK’s vote to leave the European Union (EU). 

This growth is broken down into four parts, with exhausts, large and small pressings and plastics growing since the study’s last dip into the industry two years ago. A 60% increase in local production output is mooted.

The council also claims that a domestic parts industry boosts profitability and productivity in UK-based car plants, and will help to safeguard the UK’s car industry from strangled investment from manufacturers as Brexit negotiations take hold. 

Boss of the Society of Motor Manufacturers & Traders (SMMT), Mike Hawes, said: “The domestic supply chain is the backbone of UK Automotive and its health is crucial to the success of the whole sector. While it is good news that British cars are becoming more British and re-shoring efforts are enjoying success, the process takes considerable time. To grow our supply chain further, the long-term competitiveness of the UK must be maintained.”

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Comments
8

20 June 2017
This is good news? Imported components are still more than half of cars made in the UK. Measured what way? By weight? By value?(using who's figures?)By time spent building?

It is a positive trend, but how likely is the trend to continue when the largest UK OWNED company is Morgan. Unless of course Sterling keeps collapsing in value to it's true level with the miasmic Brexit mess.

20 June 2017
concinnity wrote:

... Unless of course Sterling keeps collapsing in value to it's true level with the miasmic Brexit mess.

Since when is sterling still collapsing?? Election was a blip after a steady sterling recovery!

 

Hydrogen cars just went POP

20 June 2017
xxxx wrote:
concinnity wrote:

... Unless of course Sterling keeps collapsing in value to it's true level with the miasmic Brexit mess.

Since when is sterling still collapsing?? Election was a blip after a steady sterling recovery!

Sterling has been steadily falling since 2015 and most notably since mid last year. The long term trend is downward if you look back over the last 5 years

20 June 2017
Bolida wrote:
xxxx wrote:
concinnity wrote:

... Unless of course Sterling keeps collapsing in value to it's true level with the miasmic Brexit mess.

Since when is sterling still collapsing?? Election was a blip after a steady sterling recovery!

Sterling has been steadily falling since 2015 and most notably since mid last year. The long term trend is downward if you look back over the last 5 years

Which is my point regarding the initial statement " sterling still collapsing" which was linked to " with the miasmic Brexit mess".
Also, I looked back 5 years the Sterling Euro rate was 1.17 it's now 1.14 hardly a collapse!

 

Hydrogen cars just went POP

20 June 2017
Meant 4 years ago it was exactly was it is now, 5 years ago it was 1.25, hardly a collapse

 

Hydrogen cars just went POP

20 June 2017
This figures can be misleading. It makes sense to do final assembly close to plants to ensure JIT late configuration supply but the subcomponents often come from overseas, eg I once worked for an American owned trim manufacturer using seat covers made in South Africa and the Czech Republic, plastic mouldings from Portugal, electrics from Germany, etc, etc. It would also be interesting to find out how much of this domestic supply is from British owned manufacturers.

As regards exchange rates, look at graphs of how the £ has tanked against the US$.

20 June 2017
Chris C wrote:

..
As regards exchange rates, look at graphs of how the £ has tanked against the US$.

Or how the Euro has tanked against the US$. Apr 14 was 1.38 to 1.05 in Dec 16

 

Hydrogen cars just went POP

21 June 2017
xxxx wrote:
Chris C wrote:

..
As regards exchange rates, look at graphs of how the £ has tanked against the US$.

Or how the Euro has tanked against the US$. Apr 14 was 1.38 to 1.05 in Dec 16

Exactly. If Juncker and his fellow gangsters continue to treat our leaving as racketeers seeking reprisals against a business which has ceased to pay their protection money, the acrimonious split which will ensue shall hurt the EU far more than it would hurt the UK.

I don't need to put my name here, it's on the left

 

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