13th Edition – 2011 data – click here to view data from other years.

Page contents: Foreword | Performance indicators | Performance highlights | Signatories | Commitments | Latest data

What is sustainability?

Sustainability is achieving the right balance of economic progress, environmental care and social responsibility.

Another widely-cited definition from the 1987 Brundtland Report states, “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Video introduction

Foreword

SMMT’s 13th Sustainability Report reflects more clearly than ever the progress UK automotive is making towards its long-term environmental commitment, driven by sustained investment in resource efficiency and the development of low and ultra-low carbon products.

This report highlights key achievements in 2011, supported by detailed information within this website hub. The data, analysis and case studies provide a wealth of valuable information illustrating the economic, social and environmental credentials of automotive companies in the UK.

Besides the substantial 23% improvement in average new car CO₂ emissions since 2000, an efficient and globally competitive manufacturing base has contributed to driving down every single key environmental indicator. From substantially cutting the amount of waste going to landfill to significant reductions in total water usage, efficiencies at every level of manufacturing have produced outstanding environmental results for UK automotive.

Ensuring it remains at the forefront of global automotive innovation and manufacturing, companies in the UK have continued to invest in their workforce, which is why in 2011 the industry continued to provide training to more than 14,500 apprentices and employ nearly 720,000 people – 140,000 of who work directly in manufacturing. With UK automotive taking the lead on government initiatives like ‘See Inside Manufacturing’, as well as industry’s close relationship with academia, it fully recognises the need to attract generation after generation of bright young talent into a challenging and rewarding industry.

Generating over £50 billion turnover, the sector remains the largest in UK manufacturing and global demand for UK-built vehicles sustains healthy production volumes and export levels. As government, industry and academia work together, automotive continues to attract global investment, with over £1.3 billion spent on R&D each year ensuring the UK maintains effective long-term progress on the low carbon agenda.

2011 was a year when UK manufacturing maintained a good rate of growth as the sector continued its recovery from recession. Industry committed £4 billion investment in UK automotive, securing jobs, guaranteeing our substantial contribution to the economy, and directing huge resources into enhancing and developing manufacturing facilities. It is this commitment that will maintain our global competitiveness and the sustainability of our industry well into the future.

Paul Everitt, SMMT Chief Executive

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2012 report.

Performance indicators in summary

(* jobs data is compiled from several official sources using expert SMMT analysis)

(** due to changes with the way the data is collected, the 2010 and 2011 figures havebeen revised to include all engineering, rather than just automotive apprentices)

Please note: certain performance figures in the 2010 and 2011 columns are rounded from more detailed data available via the appendices below. Use the links to download the appendices to see the specific data behind each of the percentage changes outlined above:

• Appendix 1 – Sector Fact Sheet
• Appendix 2 – Economic indicators
• Appendix 3 – Employment indicators
• Appendix 4 – Production and distribution inputs
• Appendix 5 – Production and distribution material outputs

Economic performance

• Due to increased demand, especially for export, vehicle manufacturing rose by 5.1% in the UK and signatories’ turnover increased by 7% to £45.3billion. At the same time, UK domestic vehicle registrations dropped by 2.3%.
• Automotive sector turnover rose 12.2% whereas expenditure on R&D remained stable.

The indicators above cover 2011 data. Click through for the latest news about economic sustainability in UK automotive.

Environmental performance

• All absolute environmental key performance indicators for manufacturing improved in 2011, despite 5.1% more vehicles being produced. This demonstrates industry’s commitment to resource efficiency. Energy use dropped 6.0%, CO₂ equivalent 3.3%, water use 10.8% and waste to landfill 23.7%. All relative figures also improved.
• Volatile Organic Compounds (VOCs) from manufacturing cars and vans fell by 1% and 4% respectively.
• Average new car CO₂ fell to 138.1g/km, down 4.2% on 2010.

The indicators above cover 2011 data. Click through for the latest news about environmental sustainability in UK automotive.

Social performance

• The number of jobs dependent on the sector saw a 2.4% drop.
• Signatories’ employment rose 9.4% and the number of lost time incidents at signatories fell a further 5.1% on 2010. The number of training days remains stable at 2.9 per employee. The number of new apprentices in the sector rose by 11.7%.

The indicators above cover 2011 data. Click through for the latest news about social sustainability in UK automotive.

Signatories to this report and brands represented

Our commitments

The 15 points below represent the commitments made by the signatories of the SMMT Sustainability Report.

Sustainability reporting

1. Improve and enhance sustainability reporting and respond to stakeholder feedback.

Production and distribution

2. Control and reduce the environmental impact of company operations.

3. Affirm economic growth, turnover and investment toward securing competitiveness in the global economy.

4. Add value to employment capital through development, skills and training.

5. Improve the working environment, health and safety of employees.

6. Improve our understanding of the impact of pre and post production logistics on the environment.

7. Support development of a high quality and strong environmental supply and reverse supply chain network.

Use

8. Improve fuel efficiency of newly designed products.

9. Research, develop and bring cleaner technologies to the market to improve tailpipe emission standards and, where practical, to introduce vehicles with higher emission standards in advance of legislation.

10. Improve the safety of new vehicles.

End of life

11. Provide facilities for consumers to return vehicles for disposal at the end of their life.

12. Design and build vehicles to ensure that at least 95% of the weight of materials used can be recovered at the end of their life.

Engagement and information

13. Engage proactively with external stakeholders.

14. Provide information to consumers to enhance awareness and understanding of the vehicle’s environmental and safety features.

15. Support strategies to reduce the environmental impact of road transport through fuel, driver and infrastructure development and an overall integrated approach.

Further information

The 13th Edition of SMMT’s Sustainability Report covers 2011 data.

Archived reports are available in the Environment section of Reports and publications.

The following links take you to the most recent data:

• Most recent UK automotive sector facts and statistics.
• Latest news about sustainability in UK automotive.
• Up-to-date case studies of sustainability in UK automotive companies.

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF.

If you wish to continue reading online, use the ‘Report contents‘ menu at the top of this page to jump to another tab and find out more about sustainability in UK automotive.

Related publications

• Drive Green, Drive Safely
• Biofuels and Road Vehicles
• Right Van Man
• The Evolution of the Car

13th Edition – 2011 data – click here to view data from other years

Page contents: Manufacturing | Export | European focus on UK | Registrations | Parc | Developing the UK supply chain

The data outlined below covers 2011 activity. If you would like up-to-date information, click through here for the latest news about economic sustainability in UK automotive.

Business performance, R&D and investment

The UK automotive sector experienced a major, sharp and deep recession from 2008 to 2009, as did the whole UK economy. Partial recovery has been aided by macroeconomic policy measures, but for the UK economy as a whole, the nature and duration of recovery is more complex, slower and more variable than with other major recessions.

However, the recovery in activity to pre-recession levels has been much quicker and firmer for the automotive manufacturing sector and has become overwhelmingly export focused. Recovery in the retail and services sectors is taking longer and is more incomplete.

Across the sector, Scrappage Incentive Schemes (ending in 2010) gave a strong, but shortterm boost to output and demand in the UK, other EC states and in other key global markets like China and the US. The short-term outlook is for a period of stability after the firm bounce-back in activity in the sector.

From 2013 the expectation is that the automotive manufacturing sector in the UK will continue with robust growth in activity and output and that domestic demand for new vehicles will start to recover. With vehicle manufacturers announcing investments of over £4bn in 2011, the future for UK automotive is bright with the prospect of more jobs and higher output.

For the longer term, to 2015, the outlook is for sustained growth, especially in the car sector. Some forecasts see total output exceeding 2 million.

The analysis above covers 2011 data. Click through for the latest facts and statistics on UK automotive economy and business environment.

UK automotive manufacturing

The UK retained its position as the fourth largest vehicle manufacturer in Europe in 2011 after combined car and commercial vehicle output grew by 5.1% to 1.46 million units. This was up from a low of 1.09 million units in 2009 when the global recession caused output to fall sharply and several factories temporarily to reduce output volumes.

Further growth was constrained by natural disasters in Asia, which caused some disruption of component supply to some UK-based plants. As investment plans are realised, output is forecast to grow to some two million units by 2015 and surpass the 1.75 million units produced in 2007, pre-recession.

With exports accounting for the majority of UK manufacturing, demand across the EU and beyond will be key to realising growth plans.

The analysis above covers 2011 data. Click through for the latest monthly UK automotive manufacturing data for vehicles and engines.

Export focus to growth

In 2011 a record 81.6% of all vehicles manufactured in the UK were destined for export, up 10.1%, whilst output for the home market fell 12.5%.

Export destinations for their products vary by manufacturer, but on the whole the EU remains key – see Table 2.

Emerging markets, such as China and Russia, have taken an increased share of UK exports, reflecting recent economic growth trends. Demand in these recently emerged markets is often for higher-end products from the UK.

UK as a focus for the European industry

The ACEA Board of Directors held its annual meeting at SMMT in June 2011.

SMMT arranged a series of high level engagements with Ministers and senior officials, the highlight of which was a direct meeting with the Prime Minister.

SMMT also managed a news conference led by Dr Dieter Zetsche the ACEA President and Chairman, Daimler AG, as well as Ivan Hodac, ACEA Secretary-General and Paul Everitt, SMMT Chief Executive. It was attended by 20 national and international journalists.

New vehicle registrations

In a historical context, new vehicle markets remain restrained following the recession. Subdued household and business confidence is constraining their expenditure on new cars. The 2011 market also suffered as the first quarter of 2010 was boosted by the Scrappage Incentive Scheme (SIS) that ended in March 2010.

New car registrations fell by 4.4% in 2011 to 1.94 million units, averaging 1.99 million units over the past three years, compared with 2.4 million units between 2005 and 2007. The private market was especially weak in 2011, although fleet volumes showed modest growth. Diesels took a record 50.6% of the market, outselling petrol cars for the first time.

The commercial vehicle (CV) market recovered further in 2011 to 306,488 units, but remained 21.9% below the 2007 peak of 392,476 units. Light commercial vehicles to 3.5t (vans) account for some 85% of the total CV market and recorded a further 16.7% rise in registrations in 2011. Truck registrations rose by 25% and bus and coach registrations rose by 5% in the year.

The markets are expected to show little change in 2012, given the subdued economic setting, but as consumer confidence returns, the market is forecast to grow more strongly in 2013 towards two million units and the CV market to some 330,000 units.

The analysis above covers 2011 data. Click through for the latest facts and statistics on UK automotive market and forecasts.

Vehicles in use

The total number of vehicles in use (parc) in the UK rose 0.4% to a record 35.63 million (SMMT Motorparc database).

The car parc rose 0.3% to 31.36 million units and the CV parc rose 1.2% to 4.27 million. The net volume of parc and the age profile is determined by the number of new vehicles entering the market place and the greater reliability and longevity of vehicles. The slowdown in new vehicle demand will have adversely impacted the replacement cycle.

Given the technological improvements in new vehicles, improving the rate of vehicle replacement would ensure a more efficient, lower emitting and safer vehicle fleet.

Click through for more information about Motorparc Vehicles in Use data from SMMT.

Developing the UK supply chain

The industry is committed to supporting growth across the UK automotive supply chain, working to identify key opportunities to build the sector’s supply chain capabilities. In 2011, more than £4 billion was invested by UK-based vehicle manufacturers into projects ranging from low carbon technology development to the introduction of all-new vehicle models.

The current purchasing spend of UK-based vehicle manufacturers is valued at £7.4 billion, representing approximately 36% of their global purchasing spend.

It is estimated that 80% of component production required for vehicle assembly can be sourced from UK-based companies and, by supporting the long-term growth of the supply chain sector, industry can grow its contribution to the UK economy, secure higher gross value export value and employment within the automotive sector.

The SMMT’s regular ‘Meet the Buyer’ events seek to increase local UK sourcing by matching OEM demand with companies in the automotive supply chain. In 2011, SMMT staged four ‘Meet the Buyer’ events and organised more than 400 one-to-one meetings between buyers and suppliers covering over 80 different automotive commodities.

The 2012 ‘Meet the Buyer’ event will build on the successes of previous years and with the support of initiatives, including the recently launched £125 million Supply Chain Fund, the supply chain sector is poised to grow and attract greater inward investment.

Further information

The 13th Edition of SMMT’s Sustainability Report covers 2011 data.

Archived reports are available in the Environment section of Reports and publications.

The following links take you to the most recent data:

• Most recent UK automotive sector facts and statistics.
• Latest news about sustainability in UK automotive.
• Up-to-date case studies of sustainability in UK automotive companies.

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF.

If you wish to continue reading online, use the ‘Report contents‘ menu at the top of this page to jump to another tab and find out more about sustainability in UK automotive.

13th Edition – 2011 data – click here to view data from other years

Page contents: Water use and waste | Renewables | End-of-Life | Vehicles | Informing customers

The data outlined below covers 2011 activity. If you would like up-to-date information, click through here for the latest news about environmental sustainability in UK automotive.

Energy and resource efficiency

Total energy consumption in automotive manufacturing (AS) fell by 6.0% in 2011 despite a 6% rise in production volumes due to further optimisation of manufacturing processes, greater engagement with staff and greater utilisation of renewable energy. That is a 14.0% reduction in energy per vehicle produced.

Resulting CO₂ emissions show a similar trend, down 3.3% in absolute terms and 13.3% per vehicle.

Since 2000, energy consumption per vehicle is down 42.8% and CO₂ emissions down 37.9%.

Regulatory background
To find out more about the regulatory background to the Sustainability Report, click through to our dedicated Environment section.

Water use, waste and VOCs

Water use followed a similar positive trend to energy, falling 10.8% (absolute) and 14.9% per vehicle.

Signatories also reduced per vehicle waste to landfill by 19.8% on 2010 and 83% since 2000.

The waste absolute figure also dropped by 23.7% on 2010 despite an increase in manufacturing volume.

Optimisation of vehicle painting processes resulted in a further drop in Volatile Organic Compounds (VOC) emissions. In 2011, VOC emissions from cars and van manufacturing were 41% and 32% below the legal requirements.

SMMT developed further guidance and tips for saving water and waste management in 2011, which follow on from the successful launch of the Dealer Energy Efficiency Guide in 2010. These follow many of the same basic principles of how to become energy efficient and suggest adopting a seven step action plan for change.

Renewable energy

Overall, renewable energy installations at automotive facilities generated 16,178 MWh renewable energy, enough to power 3,900 homes. Signatories also purchased 143,302 MWh of green energy produced from renewable energy sources.

In 2011, the automotive industry was proud to unveil some new solar installations, in addition to those featured in last year’s report, but the sharp reduction the Feed-In-Tariff (FIT) rates is likely severely to impact the prospect for future projects.

End-of-Life Vehicles (ELVs)

Vehicle manufacturers’ recycling networks have achieved the 85% (by weight) recycling/recovery target imposed by the End-of-Life-Vehicle Directive since its introduction in 2006 and the automotive industry supports the recycling industry’s moves to develop new processes to meet the challenging 95% target by 2015. 10% of this target needs to be met through energy recovery from 2015, but cannot happen until UK Government approves planned processes.

• Briefing document – End-of-Life Vehicle (ELV) processing
• Consumer information – Consortium for Automotive Recycling (CARE)
• CASE STUDY – Toyota announces sustainable battery recycling agreement in Europe

Vehicle performance

The industry’s experience in driving down CO₂ emissions from vehicles has shown the EU strategy cannot rely solely on vehicle technology improvements in the longer term.

An integrated approach represents the most cost-effective way to achieve CO₂ reduction through better road infrastructure, congestion reduction measures, better infrastructure for alternative fuels and energy sources, as well as taxation based on use, consumer information and eco-driving.

In its last progress report, the European Commission focused specifically on taxation, consumer information and ecodriving as having made limited progress.

New Car CO₂

The automotive sector has invested huge resources to develop and bring to market lower CO₂ emitting technologies.

This sustained progress in new car efficiency has helped to deliver a 10.2% reduction in CO₂ emissions from all cars in use between 2000 and 2010 as the new technology infiltrates the vehicle parc.

Further progress on reducing emissions will be achieved by manufacturers delivering more efficient products, continued support from government and policy makers to facilitate the take-up of these vehicles and consumers purchasing them.

A new car bought in the UK is now 18.0% more efficient than the average car in use in the UK.

If the rate of vehicle replacement could be increased, the rate of emissions reduction would bring greater environmental and efficiency improvements.

Through investment in R&D, the sector consistently delivers lower CO₂ emitting technologies and provides more choice to motorists across all vehicle markets. SMMT’s 11^th annual CO₂ report highlights the progress that has been made during the past 15 years since first collating data on tailpipe CO₂ emissions from cars.

In 2011 sales weighted average new car CO₂ emissions in the UK fell below 140g/km for the first time, to 138.1g/km. In 2011, a new car emitted 27.2% less CO₂ than one did 15 years ago, 23.7% below the 2000 average and was 4.2% below the 2010 figure.

• Download – New Car CO₂ Report 2012

Alternatively-fuelled vehicles

Registrations of alternatively-fuelled vehicles (AFVs) passed 25,000 units for the first time, boosted by a rise in electric vehicle volumes as mainstream models entered the market place and consumers took advantage of government’s Plug-In Car Grant. Petrol-electric hybrids, which accounted for 92% of all 2011 AFVs volumes, had average CO₂ emissions of 103g/km, 25% lower than the UK average.

Carbon footprint through the life cycle

The use phase is one of the most significant environmental, social and economic impacts in a vehicle’s life cycle. The chart shown here gives a breakdown of CO₂ emissions throughout the life cycle of a typical vehicle.

It is based on SMMT data and various academic reports. These proportions are expected to change as alternative fuels and propulsion technologies, such as hybrids and full electric vehicles, penetrate the market further.

Production:

• Manufacturing
• Logistics
• Energy for sales and support functions

Use:

• CO₂ from distance driven
• CO₂ from servicing and after market functions

Recycling:

• CO₂ from managing end-of-life vehicles (ELV)

Informing customers

The colour coded new car CO₂ label has been almost universally adopted with 94% of dealers displaying it.

The Department for Business Innovation and Skills (BIS) and the Cabinet Office published Better Choices, Better Deals: Consumers Powering Growth in April 2011, aiming to help consumers get the best deal possible, and make business more dynamic in response.

This led to a project to look again at the car label design potentially to include running costs over a longer period than the 12 months currently on the label and consider whether the effectiveness of the label would be enhanced by providing information on how the model compares with others in that model range. There is also interest in developing the label for plug-in hybrids and pure electric vehicles.

The label design was last reviewed for the 2009 change from seven to 13 VED bands (A-M). The Low Carbon Vehicle Partnership (LowCVP) is leading the project with Department for Transport (DfT), SMMT and the Energy Saving Trust, among other stakeholders, to develop and test designs with consumer focus groups and an online survey of 1,000 car buyers.

Nissan LEAF earns top safety rating from Euro NCAP

Nissan LEAF has been awarded the highest Euro NCAP five star car safety rating. It achieved 89% rating for adult safety, an 83% rating for child protection and an 84% rating for its on-board safety assist systems (which include Electronic Stability Control (ESC) and a speed limiter as standard).

HPI and Experian to provide free used car labels

The used car label was developed in 2009 and adopted on a voluntary basis to continue the messaging and consumer information available to new car buyers.

More than half a million used car labels have been generated through the VCA system and a similar number through HPI. Nearly 1,500 dealers actively use the VCA service.

The DfT and industry still consider that the initiative is valuable. In 2011, DfT developed agreements with HPI and Experian to provide the used car label free of charge after DfT funding to the project ended in April 2012. SMMT has been closely involved in ensuring a smooth handover from VCA to HPI and Experian and in raising awareness in the industry.

Many dealers already use HPI or Experian to check for outstanding finance etc as part of the standard pre-sale checks for marketing a used car, so printing the label can become integral to standard practice.

Industry agrees Best Practice Principles for environmental claims

The Best Practice Principles were created and launched by SMMT with the LowCVP and ISBA (Incorporated Society of British Advertisers) in July 2010. The principles are used by marketers and consumers to ensure that marketing claims are legal, decent, honest and truthful; that consumers can access information to make good purchasing decisions; and that environmental claims are:

• specific
• not misleading
• capable of substantiation.

Download – Best Practice Principles for environmental claims

Noise

In December 2011, the European Commission made a new proposal for further limiting noise from all categories of vehicle. The objective of the proposal is to ensure a high level of health and environmental protection.

The proposal includes reviewing test methodology and noise limits. The UK automotive industry is continually working to improve the environmental impact of its products and recognises the need to ensure stringent maximum and minimum noise limits, while ensuring safety and industry competitiveness are a priority.

Industry has four key areas of concern: the test speed used, lead times, vehicle categorisation and noise limits needing to be achievable for the diverse range of vehicles produced in the UK. The European institutions will be considering the Commission proposal through 2012.

Further information on vehicle environmental performance (alternative fuels, petrol, diesel, alternative powertrains) can be found in SMMT’s New Car CO₂ report 2012.

New SMMT headquarters awarded Bronze Ska Rating

SMMT is committed to the continuous improvement of environmental best practice in the workplace. Through the introduction of a series of eco-innovations and measures, its new office in the heart of Westminster was awarded an acclaimed Bronze Ska Certificate. Ska Rating was developed by the Royal Institute of Chartered Surveyors (RICS) to assess the environmental performance of office fit-out projects.

SMMT positioned sustainability at the core of the new office design, using low-global warming potential insulation, lighting and water usage controls, as well as the use of sustainable hardwoods and timbers. SMMT’s new office retrofit saw the refurbishment of a 1970s building to meet 2011 UK regulatory standards.

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2011 data.

Archived reports are available in the Environment section of Reports and publications.

The following links take you to the most recent data:

• Most recent UK automotive sector facts and statistics.
• Latest news about sustainability in UK automotive.
• Up-to-date case studies of sustainability in UK automotive companies.

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF.

If you wish to continue reading online, use the ‘Report contents‘ menu at the top of this page to jump to another tab and find out more about sustainability in UK automotive.

13th Edition – 2011 data – click here to view data from other years

Page contents: Employment and retention | Key facts and figures | Apprenticeships, skills and training

The data outlined below covers 2011 activity. If you would like up-to-date information, click through here for the latest news about social sustainability in UK automotive.

Overall automotive employment

2011 saw a 9.4% growth in the number of employees reported by signatories. Signatories not only increased the employment level, but also raised the staff retention, resulting in turnover reaching new record low of 2.9%.

In 2011 the number of lost time accidents dropped by 9.1% on the 2010 level and reached 2.7 per 1,000 employees.

The number of training days per employee remained stable in 2011, reaching 2.94 training days per employee. This performance is in line with the pre-recession levels.

After pioneering the initiative in 2010, over 40 automotive companies across the UK participated in ‘See Inside Manufacturing’ in June and October 2011. The campaign gives young people across the UK a glimpse of what it might be like to work in one of the most innovative and vibrant advanced manufacturing sectors. It was successful in attracting young talent with over half of those of school age who attended an event saying they would now consider a career in the industry, and more than 80% of teachers and careers advisors likely to advise a career in UK automotive manufacturing.

From design to manufacturing, the automotive sector presents a fantastic range of career opportunities for young people at all levels. The UK is home to some of the world’s most productive manufacturing facilities and exciting technological innovations.

Initiatives like ‘See Inside Manufacturing’ give young people contemplating their future a real chance to experience firsthand the diversity of our industry and the potential jobs and rewards it can offer. Attracting the brightest talent to our sector will be crucial to maintaining and improving the UK’s role in a fast moving global industry.

For more information, visit the Automotive Council website.

Employment in the UK automotive industry: key facts

• New engineering and technology graduates have a starting salary more than 10% higher than other new UK graduates.
• From manufacturing and engineering to sales, maintenance and repair, there is a role in industry which suits every skill set.
• 719,000* jobs are directly dependent on the industry, of which 139,000 are in automotive manufacturing.
• Approximately 50,000 people are employed in UK motorsport and more than 7,500 jobs are within automotive R&D.

Apprenticeships, skills and training in industry
The UK automotive industry is a dynamic and evolving sector which demands a highly-skilled and flexible workforce.

Apprentices are vital for the automotive industry to develop and maintain a world-class skills base.

• In 2011, 64% of UK automotive companies provided training with 58% of companies recruiting 16-year-olds, direct from school and 11% directly from university/higher education institutions.
• There are approximately 18,000 apprentices working in automotive retail.
• The Gross Value Added per employee is £61,100 within the UK automotive sector, compared with £35,000 across the whole UK economy.

Click through to download the SMMT fact sheet on skills, apprentices and employment in UK automotive.

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2011 data.

Archived reports are available in the Environment section of Reports and publications.

The following links take you to the most recent data:

• UK automotive sector facts and statistics.
• Latest news about sustainability in UK automotive.
• Up-to-date case studies of sustainability in UK automotive companies.

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF.

If you wish to continue reading online, use the ‘Report contents‘ menu at the top of this page to jump to another tab and find out more about sustainability in UK automotive.

13th Edition – 2011 data – click here to view data from other years

Page contents: Low carbon agenda |  Air quality | Biofuels | HGV CO₂ | Carbon plan | Car and van CO₂ | Tyre labelling

A low carbon industrial agenda for the UK:

Automotive Council roadmaps and sticky technologies

The preceding pages show the progress made and the £4 billion committed by industry to investment in UK automotive, securing jobs and guaranteeing our substantial contribution to the economy.

In the Automotive Council, industry and government have been working to set a strategic agenda for the UK industry, securing maximum benefit from the global shift to low and ultra-low carbon technologies and developing the supply chain. This agenda is about investment, capability building, competitive advantage, growth and jobs in UK automotive manufacturing, R&D and the supply chain.

If this is a shared agenda across Whitehall, it can become a central part of the UK industrial policy, which will rebalance the economy, deliver export-led growth and a low carbon economy.

The Automotive Council has developed a common view of the five priority R&D areas in which the UK has a competitive advantage and will get a good return on private and public investment. These strategic areas are known as the five ‘sticky technologies’ for UK automotive.

The Automotive Council has also sketched out its vision for technology development over the coming decades in its consensus roadmaps for cars and for commercial and offhighway vehicles (see above).

The transition to ultra-low carbon vehicles and fuels will continue to be a high priority in 2012. SMMT will focus its attention on developing the early market for ultra-low carbon vehicles and infrastructure development, continuing the downward trend of average new car CO₂ emissions and retaining challenging, but achievable car and van CO₂ targets that support a diverse and dynamic market.

The introduction of the Euro VI emission standard for heavy commercial vehicles, the development of the worldwide harmonised light vehicles test procedure, the European drive for greater resource efficiency and new EU noise limits and test procedures will create significant new challenges for industry.

SMMT is mapping-out the progress made by industry and next steps on air quality. A Ministerial Strategic Task Force will also see SMMT working closely with transport operators and other stakeholders to ensure policy makers effectively address the barriers to uptake of low emission trucks in the UK.

Air quality update – other tailpipe emissions

On 1 September 2009, the Euro 5 emissions standard for cars came into force for new type approvals. It was mandatory for all new passenger vehicles from 1 January 2011. This standard reduces oxides of nitrogen (NO_x) emissions by nearly 40% and particulate matter emissions by 80% for diesel vehicles compared to the Euro 4 standard and continues the trend of substantial emissions reductions over the last 17 years.

The next Euro standard (Euro 6) has also already been agreed and is to be implemented from 2014, with a further 55% reduction in NO_x emissions for diesel engines and particulate number limits for gasoline engines.

• Briefing document – Euro emissions standards for Passenger cars, Heavy duty trucks and Off highway vehicles

Biofuels

Biofuels offer a way to reduce CO₂ emissions from transport. At present biofuels account for around 3% by volume of blend in petrol and diesel fuel. New petrol cars are generally capable of running with a blend of up to 5% biofuel, while for diesels it is 7%, but concerns about the sustainability of biofuels have so far limited their reach.

The Renewable Energy Directive requires the transport share by energy to rise to 10% by 2020. The Committee on Climate Change supports a rise to 8%, as in the Gallagher report. Industry is developing cars to run on higher blends of fuel, but at present not all cars can do so.

HGV CO₂

SMMT will continue to engage with the European Commission process to develop an HGV CO₂ reduction strategy.

In the UK, the government’s 2011 Logistics Growth Review led to the establishment of a Ministerial Strategic Task Force to look at the barriers to the widespread uptake of low carbon trucks and opportunities for interventions to overcome them. This will see SMMT working closely with DfT, transport operators (Freight Transport Association, Road Haulage Association), and stakeholders like the Low Carbon Vehicle Partnership and the Transport Knowledge Transfer Network (KTN).

A £9.5m Technology Strategy Board (TSB) competition for low carbon truck demonstration and refuelling infrastructure will also provide a welcome opportunity to showcase to a wider UK audience the capabilities of the truck technologies that are already available and to develop alternative fuel infrastructures across the country.

Carbon plan

In December 2011, SMMT welcomed government’s Carbon Plan(8) as a policy framework to deliver the ambitious CO₂ reduction targets set out in the legally binding Carbon Budgets. It sets out a number of CO₂ reduction pathways for each sector of the economy through the 2020s, all of which are consistent with the UK’s carbon budgets to 2027 and the statutory 80% CO₂ reduction target for 2050.

SMMT seeks a plan that reflects the UK government desire for a strong, growing and globally competitive manufacturing sector. The plan needs to deliver greater incentivisation of private sector R&D investment and technology development in line with the joint industry and government Automotive Council work and its technology roadmaps.

Car and van CO₂

The Commission is expected to publish conclusions on the review of the 2020 targets for cars and vans before the summer of 2012 and an indicative Commission Communication on post-2020 strategy later in 2012. There is sound logic in focusing efforts on the development of a post-2020 strategy.

The Van CO₂ Regulation was only published May 2011 and the technologies available and their costs are unchanged since the targets were agreed in co-decision between the European Institutions shortly before that.

In January 2012, SMMT welcomed the news that the Plug-In Car Grant will be retained and a new Plug-In Van Grant created – reducing the cost of eligible vans by 20%, up to the value of £8,000(5). This sends a strong signal to the global automotive industry about the UK’s determination to be a leading market for ultra-low carbon vehicles.

The UK will reap significant industrial and environmental benefits from establishing an early and flourishing ultra-low carbon vehicle market, attracting high value investment in R&D, innovation and automotive manufacturing.

Tyre labelling

Where end-users are offered a choice at the point of sale between different tyres to be fitted on a new vehicle, the EU Tyre Labelling Regulation 1222/2009 requires information to be provided on the fuel efficiency class, wet grip class and external noise from 1 November 2012.

If all cars were fitted with low rolling resistance tyres, direct emissions of eight million tonnes CO₂ per year would be saved.

The Regulation is also expected to improve road safety, emissions and tyre life through increased consumer awareness of tyre-related issues (eg correct inflation).

Further information

The 13th Edition of SMMT’s Sustainability Report covers 2011 data.

Archived reports are available in the Environment section of Reports and publications.

The following links take you to the most recent data:

• Most recent UK automotive sector facts and statistics.
• Latest news about sustainability in UK automotive.
• Up-to-date case studies of sustainability in UK automotive companies.

If you wish to read the report offline, click here to download the 2012 Sustainability Report as a PDF.

If you wish to continue reading online, use the ‘Report contents‘ menu at the top of this page to jump to another tab and find out more about sustainability in UK automotive.