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UK Automotive - the global enterprise in the UK
The automotive sector is a highly flexible, dynamic and global enterprise. It needs to be as it must adapt and respond to the global challenges of our time, rapid GDP and trade growth, deep structural shifts in economic patterns and strong environmental aims. The business responses vary from firm to firm and county to country, but the overall impact is positive, has to be innovative and is reworking how, where and what vehicles we will use vehicles to support our everyday lives.
People will always need mobility, businesses too must have timely access to markets, and we all seek more choice, freedom and a better quality of life. It is automobiles that help to enable and deliver these connections. Through their manufacture and use automobiles generate substantial wealth, investment and jobs.
From research and manufacturing, through refuelling and maintenance in use, to recycling at the end of a vehicle's life, the automotive enterprise and its extended supply chain generate a diverse array of wealth and jobs. The core manufacturing, distribution and servicing business in the UK directly generate a turnover value of £200 billion, supports 200,000 manufacturing jobs and 580,000 more jobs in sales, servicing, refuelling, maintenance activities and other service related activities. As a share of economy-wide turnover and jobs the direct totals for the automotive sector account for about eight per cent of turnover and three per cent of jobs.
In 2006 there were 1.65mn cars and commercial vehicles (CVs) produced in the UK. In the same year there were 2.73mn vehicles newly registered. In 2005 there were 34.59mn cars and CVs in use. It is estimated that over 2mn vehicles are currently scrapped each year.
Over the past decade the UK has seen some marked shifts in the composition of vehicle production in the UK. Ford blue oval badged cars, MG Rover and most recently Peugeot have ceased production in the UK. Whilst the Japanese manufacturers have seen major growth and the MINI brand has emerged. The UK is also home to a number of CV manufacturers and low volume specialist sports cars. High value products like Aston Martin, Bentley and Rolls Royce have seen output rise, whilst the UK also has a strong supply of engine manufacturers, with growing output.
The automotive sector in the UK, as globally, is constantly changing and adapting to challenging commercial, regulatory and technological trends. The importance of sustainable development and increasingly of climate change and the need to reduce CO2 emissions, at a time when the industry is already under significant cost pressures, will continue to ensure the sector evolves and adapts.
SMMT's Economics team are here to provide guidance and raise awareness so that businesses and all those with an interest in our sector can be informed and prepared for the challenges of today and tomorrow.
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