Sustainability

12th Edition – 2010 data – click here to view data from other years.

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Report contents: Summary | Economic performance | Environmental performance | Social performance | Future vision

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

Foreword

SMMT’s 12th Sustainability Report is more focused, more efficient and has more of an eye on the future than ever before – reflecting perfectly the progressive, forward-thinking excellence that UK automotive is exploiting now and will hone as we move towards an even more sustainable future.

This report looks back at achievements in 2010, but scratch below the surface here and you’ll find a host of resources that highlight the economic, social and environmental credentials of automotive companies in the UK reinforced with up-to-date case studies of sustainability in action.

With an eye on the future, industry has collectively embraced the need to develop the next generation of automotive employees using training and apprenticeships to maintain the high levels of expertise the UK is famed for around the world. With over 14,500 apprentices starting automotive placements during 2009/2010, greater levels of government engagement and industry-wide schemes such as ‘See Inside Manufacturing’ taking off, the UK is well placed to capitalise on the manufacturing-led economic recovery.

Over the years, industry has intensified its efforts to increase efficiency, cut emissions and reduce waste at every stage in the life-cycle of a vehicle. From the introduction of renewable energy generation at its manufacturing sites and encouraging retailers to make efficient use of energy to ongoing leaps forward in reducing CO2 emissions and educating motorists, UK automotive is continually innovating to maintain its efficiency and environmental awareness, a point proved by the reductions in each of our ‘per vehicle’ environmental indicators.

New technologies and the ongoing refinement of conventional engines are the key to a low carbon future and importantly, a core strength of the UK, attracting international investment to the country and acting as a key driver in the UK’s export potential. Our expertise, engineering skills and R&D capabilities are world renowned and throughout the report you’ll see examples of global companies investing in UK automotive to drive their low carbon activities. The job creation, supply chain spend and international demand for the products produced here all contribute to our country’s economic stability and future prospects.

2010 was a year when UK manufacturing got back on track after the economic uncertainty of 2009. Now, with productivity increasing and a host of investment announcements bringing enhanced certainty to industry, 2011 can be seen as a fresh base from which to build the next generation of UK automotive.

Paul Everitt, SMMT Chief Executive

If you wish to read the report offline, click here to download the 2011 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 2011 report.

Performance indicators in summary

Please note: certain performance figures in the 2009 and 2010 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:

Economic performance

  • All economic indicators rose in 2010 compared to 2009: turnover (20%), R&D investment (8%),production (28%) and registrations (4%) were all up.

The indicators above cover 2010 data. Click through for the latest news about economic sustainability in UK automotive.

Environmental performance

  • Average new car CO2 emissions in the UK fell 3.5% to 144.2g/km, more than double the annual average reduction rate over the past decade.
  • Relative environmental production metrics improved: energy use (8%), CO2 emissions (11%), waste to landfill (19%) and water use (8%) per vehicle all improved.
  • Increased vehicle production (27% VMs) meant total CO2 emissions (22%), energy use (24%), water consumption (15%) and waste (8%) rose.
  • VOCs from manufacturing cars fell by nearly 6% and from vans increased slightly (3%), mainly due to production changes at one plant.

The indicators above cover 2010 data. Click through for the latest news about environmental sustainability in UK automotive.

Social performance

  • The combined number of employees for all signatories climbed by 4%. Jobs dependent on the sector saw a slight increase of 0.1%.
  • The significant drop in lost time incidents (30%) in 2010 reflects industry’s safe and progressive working environment.
  • The number of training days dropped by 14%, returning to pre-recession levels. Train to Gain supported higher training levels during the recession, while government funding cuts and the return to full production levels impacted in 2010.
  • The number of new apprentices in the automotive sector increased by 9%.

The indicators above cover 2010 data. Click through for the latest news about social sustainability in UK automotive.

Signatories to this report and brands represented

Bentley Motors Limited Bentley
BMW Group including Rolls-Royce Motor Cars Limited BMW, MINI, Rolls-Royce
Caterpillar Caterpillar, Perkins
Chrysler UK Limited Chrysler
Ford Motor Company Limited Ford
General Motors UK Limited Vauxhall, Chevrolet
GKN Driveline Limited GKN
Honda of the UK Manufacturing Limited Honda
IBC Vehicles Limited Vauxhall, Renault, Nissan Commercial Vehicles
Jaguar Cars Jaguar
Land Rover Land Rover
Leyland Trucks DAF Trucks
Mercedes-Benz UK Limited Mercedes-Benz, smart
Nissan Motor Manufacturing (UK) Limited and Nissan Technology Centre Group Nissan
PSA Peugeot Citroën Automobiles UK Limited Peugeot, Citroën
Toyota (GB) plc and Toyota Motor Manufacturing (UK) Limited Toyota, Lexus
Volkswagen Group (UK) Limited Audi, SEAT, Škoda, Volkswagen Passenger Cars, Volkswagen Commercial Vehicles
Volvo Cars UK Limited Volvo

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 12th Edition of SMMT’s Sustainability Report covers 2010 data.

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

The following links take you to the most recent data:

If you wish to read the report offline, click here to download the 2011 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

12th Edition – 2010 data – click here to view data from other years

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Report contents: Summary | Economic performance | Environmental performance | Social performance | Future vision

Page contents: IntroductionSector profile | Production | Export | Investment | Vehicle registrations | Parc

The data outlined below covers 2010 activity. If you would like up-to-date information, click through here for the latest news about economic sustainability in UK automotive.

Attracting investment, promoting growth and stimulating an export-led recovery

  • £49bn annual turnover, up 20%
  • £10bn value added to economy
  • £29bn exports; vehicles exported up 31%

The automotive sector represents 6.7% of UK turnover and 2.6% of gross value added. The sector bounced back from recession in 2010 but still has some way to go to recover fully.

Tough competition, notably from the Far East, and much tighter environmental regulations pose significant challenges. The industry is working with government and other stakeholders in an effort to ensure the UK remains a competitive and attractive place to design, develop, build and use vehicles of all types.

The analysis above covers 2010 data. Click through for the latest facts and statistics on UK automotive economy and business environment.

The automotive sector in the UK

UK automotive turnover is estimated to have improved after the recession, recovering from £41 billion in 2009 to £49 billion in 2010 (pre-recession levels over £50 billion). The sector added some £10 billion to the UK economy in 2010, on par with pre-recession figures, as exports picked up sharply.

The value of UK exports rose to £29 billion in 2010, just ahead of the 2008 peak. The automotive sector represented almost 11% of all UK trade in goods in 2010.

Approximately four out of five vehicles produced in the UK are exported and increased sales of premium products to markets such as China and the US helped lift the UK automotive sector’s performance.

The number of automotive jobs stabilised in 2010 at just below 740,000. Jobs in manufacturing dipped below 150,000, but other direct jobs related to supply and in-use activities rose.

The UK has attracted significant automotive investment recently and the devaluation of sterling has supported the sector.

To attract and retain global players to the automotive industry in the UK there needs to be a flexible and skilled labour force and the UK’s tax regime has to be internationally competitive.

UK production

The UK is the fourth largest vehicle manufacturer in Europe. In 2007 the UK produced 1.75 million new cars and commercial vehicles (CVs). The global recession saw UK output drop to just 1.09 million units in 2009, before partially recovering to almost 1.4 million units in 2010, a rise of 27.8%. Output is forecast to continue to grow and move above pre-recession levels, although this is reliant upon sustained growth in the global marketplace, notably outside the EU.

The analysis above covers 2010 data. Click through for the latest monthly UK automotive manufacturing data for vehicles and engines.

Export focus to growth

In 2010, 77.9% of all vehicles produced in the UK were destined for export. Of the 1.27m cars produced in the UK almost one million units (78.7%) were exported.

The total number of vehicles produced for export rose by 30.9% in 2010, compared with growth for the home market of 18.0%.

Exports continued to rise in 2011.

New investment to support growth

The automotive industry is truly global and attracting inward investment to the UK remains a high priority for industry and government.

Development of a suitably skilled and flexible workforce is a top priority achieved through investment in training and apprenticeship schemes.

The past two years have seen a number of high-profile announcements regarding investment in the UK automotive sector. These have amounted to the creation of around 8,400 new jobs, the safeguarding of over 12,000 jobs and investments in production expansion and new models worth over £3.9 billion.

The UK must demonstrate that it is a competitive and attractive place to invest and as part of this, government should work to minimise the regulatory burden and reporting requirements.

 

The analysis above covers 2010 data. Click through for the latest facts and statistics on UK automotive economy and business environment.

New vehicle registrations

The 2008 recession caused a sharp decline in new vehicle demand. The car market was supported by the general reduction in VAT, low interest rates and the Scrappage Incentive Scheme (SIS) but demand remained weak. The market is heavily reliant on a stable economic setting and is expected to recover once consumer confidence returns.

The CV market fell more sharply than the car market. However, with businesses and operators returning to more usual replacement cycles, the market is showing a strong and sustained recovery – albeit from a low base.

Registrations up 4%, but still 20% below pre-recession levels.

The analysis above covers 2010 data. Click through for the latest facts and statistics on UK automotive market and forecasts.

Parc

In 2010 SMMT’s Motorparc database (the total number of vehicles in use) showed there were 35.48 million vehicles on UK roads. This was 0.7% or a quarter of a million vehicles more than the 2009 level and almost on par with the 2008 record of 35.54 million units. The car parc in 2010 was 31.26 million units.

The net volume of parc and the age profile will be determined by the number of new vehicles entering the market place and the greater reliability and longevity of vehicles.

A growing and potentially older parc has important resource implications for the demands on the road infrastructure, but also emissions from the fleet of vehicles in use. Newer vehicles are typically more efficient, less polluting and safer than the vehicles they replace, so a speeding up of the replacement cycle could provide environmental and social benefits.

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

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2010 data.

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

The following links take you to the most recent data:

If you wish to read the report offline, click here to download the 2011 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.

12th Edition – 2010 data – click here to view data from other years

________________________________________________________________________________________________

Report contents: Summary | Economic performance | Environmental performance | Social performance | Future vision

Page contents: Introduction | Industry | Energy efficiency | RenewablesEnd-of-Life | Vehicles | Informing customers

The data outlined below covers 2010 activity. If you would like up-to-date information, click through here for the latest news about environmental sustainability in UK automotive.

Growing a sustainable, low carbon industry

  • Per vehicle manufacturing indicators improved: energy use (8%), CO2 output (11%), waste (fell 19%).
  • Automotive plants produced enough renewable energy to power up to 9,000 households, saving approximately 19,000t CO2 in the year.
  • Dealer Energy Efficiency Guide research showed how automotive retailers could reduce energy use and save up to £10,000 per year.
  • 3.5% reduction in new car tailpipe CO2 to 144g/km, twice the average rate of improvement in the last decade.
  • Over a third of a million environmental advice labels for used cars issued by the end of 2010.
  • 90,000 tonnes more end-of-life vehicles recovered in 2009.

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

Industry performance

Since SMMT sustainability reporting began in 1999, vehicle manufacturers have made great strides in reducing the environmental impact of manufacturing processes and making more efficient use of natural resources. Despite an inherent link between production volumes and resource consumption, the automotive industry has managed to improve energy efficiency considerably and apply a closed loop approach to materials management.

Energy use in production

In 2010 the adverse effects of lower production volumes faded away, allowing manufacturers to get back to the improving pre-recession trends. As a result, energy use per vehicle produced decreased by 8% in 2010.

Against a backdrop of a 27.8% increase in vehicle production, energy use for all vehicle manufacturers increased by 15.8% in absolute terms from 2009. Total energy use for all signatories (AS) increased in absolute terms by 23.7%.

Carbon dioxide emissions

Carbon dioxide emissions associated with manufacturing each vehicle fell by 10.5% in 2010 and has fallen 28% since 1999.  This is the result of investment in energy efficiency and increased production volumes, allowing the baseload of a site’s energy consumption to be spread over a larger number of vehicles.

Against a backdrop of a 27.8% increase in vehicle production, absolute CO2 emissions from all signatories are up on 2009 by 21.5%, and 12.7% up from vehicle manufacturers.

Waste to landfill

Signatories also reduced waste to landfill per vehicle by 69% since 1999 and by almost 20% in 2010. These improvements were achieved by increasing segregation at source and successful application of the waste hierarchy approach – prevent, reduce, reuse, recycle and recover.

In 2010 total waste to landfill increased by 8% for all signatories and 2.1% for vehicle manufacturers, against a backdrop of a 27.8% increase in vehicle production.

Waste recycled

In 2010, the amount of waste recycled by signatories rose by 15.8% due to increased production volumes.

Recycling per vehicle produced decreased by 7.7% to 152kg.

Since our records began, recycling per vehicle produced has almost doubled (up by 94.5%).

Water use in production

Increased production volumes combined with continued use of water-saving technologies resulted in an 8% drop in water use per vehicle produced in 2010.

Total water used in 2010 by all our signatories fell by 14.9% in absolute terms.

Emissions of volatile organic compounds

Industry continues to minimise emissions of Volatile Organic Compounds (VOCs), which arise from vehicle painting. VOCs are potentially one of the most significant environmental issues in automotive manufacturing. They can be a precursor of summer smog and minimising them can be energy intensive.

VOC emissions from building cars and vans varied slightly over the year, they were, respectively, 40% and 29% below the legal limit in 2010.

Car paint shops have reduced their VOC emissions by 35% since 1999 and 5.6% on 2009. At 36g/m2 this is well below the European VOC limit of 60g/m2 for cars.

VOC emissions from vans increased by 3.2% in 2010 to 64g/m2, comfortably below the 90g/m2 legal limit for vans.

Improving energy efficiency in dealerships

The industry has also been looking at the broader footprint of its operations and in 2010, focused on dealerships as the next step in the sustainability agenda. As a result SMMT, in association with the RMI and Carbon Trust, published a Dealer Energy Efficiency Guide, which explains how best to reduce energy use and improve business profits.

Audits of a sample of dealerships across England and Scotland identified that an average dealership could save up to £10,000 a year by cutting its energy use – £4,000 of which could be saved from zero cost actions. This initiative illustrates the ongoing support that the automotive industry provides dealers to improve efficiency and reduce their environmental impact.

Renewable energy

Vehicle manufacturers have explored various sources of renewable energy from wind and solar power to biomass. Positive outcomes have encouraged manufacturers to explore renewables further, although the lack of government support (eg recent cuts to Feed-in Tariffs) and insufficient funds risk slowing the progress in this area.

In 2010 signatories to the sustainability report produced 36,636MWh of renewable energy, enough to power up to 9,000 households and saving around 19,000t CO2 each year.

End-of-Life Vehicles (ELVs)

The UK automotive industry is not only committed to sustainable production, but also sustainability at the end of the product’s life. Since 2006, manufacturers’ networks have met their annual target of 85% reuse, recycling or recovery by weight of end-of-life vehicles. The amount of material recovered rose by more than 90,000t in 2009 as the number of ELVs captured in the UK rose by 117,000 against previous year, not least due to the Scrappage Incentive Scheme (SIS).

Vehicle performance

Car and van CO2 emissions fell by 3% and HGV emissions fell by around 9%. Preliminary assessments of 2010 data suggest that car emissions have fallen further, as distance travelled fell by 2%, uptake of biofuels hit 3.1% and average new car CO2 improved by 3.5%.

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)

New Car CO2

Average new car CO2 emissions have fallen every year since records began. In 2010, average new car CO2 emissions fell by 3.5% and have declined by 20.3% since 2000. In 2010, over half of the new car market was below 140g/km and the sub-100g/km market doubled. This progress has been made thanks to significant investments in low carbon technologies and consumer preference shifting towards such vehicles, aided by government policies.

In 2010 there was also a record market share for alternatively fuelled vehicles and diesel cars (which are more fuel-efficient than their petrol equivalents). In the coming years, the marketplace will see the introduction of highly innovative products with significant growth expected in electric, hybrid and other alternatively fuelled vehicles.

Despite some concern that a shift in the market mix after the Scrappage Incentive Scheme might slow, or even reverse, progress made on reducing average new car CO2 emissions, monthly data shows that this did not happen and that emissions continue to fall. However, the pace did moderate marginally in the second half of 2010, when the SIS ended.

Surface transport CO2 emissions fell by almost 4% in 2009 as a result of the efficiency of new cars and CVs, a reduction in distance travelled.

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 (NOx) 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 NOx emissions for diesel engines and particulate number limits for gasoline engines.

Informing customers

Building on the successful introduction of the new car fuel economy label, the used car fuel economy label was launched in November 2009. By the end of 2010, over a third of a million used car labels had been displayed at the 1,300 dealers actively engaged in the scheme. An average of 17,000 labels were downloaded per month during 2010.

The colour coded new car CO2 label has been almost universally adopted. 94% of dealers were displaying it at the last count in 2009.

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.

DownloadBest Practice Principles for environmental claims

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2010 data.

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

The following links take you to the most recent data:

If you wish to read the report offline, click here to download the 2011 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.

12th Edition – 2010 data – click here to view data from other years

________________________________________________________________________________________________

Report contents: Summary | Economic performance | Environmental performance | Social performance | Future vision

Page contents: Introduction | Employment and retention | Training and skills | See Inside Manufacturing | Road safety

The data outlined below covers 2010 activity. If you would like up-to-date information, click through here for the latest news about social sustainability in UK automotive.

Investing in skills, a dynamic workforce and communities

  • Investing in people to support future growth, build expertise and strengthen competitiveness.
  • 14,500 of the best apprenticeships in manufacturing, including 6,000 advanced apprenticeships.
  • Encouraging young people to make careers in engineering and manufacturing.

Employment and retention

Although employment in the sector is still below prerecession levels, the number of automotive jobs stabilised in 2010 at just below 740,000.

Jobs in manufacturing dipped below 150,000, but other jobs related to supply and in-use activities rose.

The number of employees reported for 2010 by signatories increased by 4.3% on the 2009 level, demonstrating that industry is recruiting again.


In 2009-10, relatively steady employment levels were coupled with a low turnover rate, 4.1% in 2010, the lowest level since SMMT records began. High staff retention levels are a testimony to the safe and attractive work environment created by vehicle manufacturers for their employees.

In 2010 the number of lost time incidents dropped by 30.3% to 3.4 lost time incidents per 1,000 employees. This illustrates the high priority given to health and safety by signatories and the sector as a whole.

Training and skills

While the number of training days per employee in 2010 dropped 13.8% on 2009, reaching 2.9 days per employee, it is still broadly in line with pre-2008 levels. In 2009, when vehicle production was low, the time was used to train employees.

Apprenticeships are a key channel for the automotive industry to recruit and train its workforce. In year 2009/2010 14,530 apprentices started their placements in the automotive sector, of which over 6,000 were Advanced apprenticeships (NVQ Level 3).

The Sector Skills Council for Science, Engineering and Manufacturing Technologies (Semta) has supported large and small automotive companies to train in excess of 25,000 employees on recognised qualifications.

National data for 2008 showed that GVA per employee for automotive in the Semta footprint was very high at £61,100 per employee, compared to an average of only £35,000 across the whole economy.

To aid vehicle manufacturing’s already significant investments in its workforce, industry looks to government to create the right environment to support further investment in training and skills. A good example of flexible government support was the ‘Train to Gain’ scheme, which helped businesses of all sizes throughout the supply chain to up-skill their workforce during the recession.

To continue the targeted support to the industry as it recovers and plays an active role in economic growth and job creation, continued support for up-skilling in the supply chain is essential and provisions need to be made in consultation with employers.

 

See Inside Manufacturing

In late 2010, the automotive industry started discussions with government on opening up sites across the UK to young people and their influencers to encourage more of them to join the sector and better understand the opportunities available. The automotive industry was the first sector to pioneer the ‘See Inside Manufacturing’ initiative. For more information, visit the Automotive Council website.

Road and vehicle safety

Britain’s roads are among the safest in the world. A steady fall in casualties over 10 years continues; the number of people killed in road accidents fell from 2,222 in 2009 to 1,857 in 2010.

Although economic and social factors played a part it is notable that the number of car occupants killed was 842, a 20% reduction on the previous year. The total number of casualties among car users was 133,212, a 7% fall on the previous year. Car and taxi traffic fell by 2% over the same period.

New vehicles, with their ever higher levels of passive and active safety features, have played a major role.

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2010 data.

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

The following links take you to the most recent data:

If you wish to read the report offline, click here to download the 2011 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.

12th Edition – 2010 data – click here to view data from other years

________________________________________________________________________________________________

Report contents: Summary | Economic performance | Environmental performance | Social performance | Future vision

Page contents: Introduction | Supply chain | EU Van CO2 | Plug-In Car Grant | Plug-In Van GrantSustainable innovation

Growing the UK motor industry

  • The Automotive Council sets out the future vision of the UK industry.
  • Government and industry work collaboratively to grow the technology capabilities and readiness levels, and create a technology roadmap for commercial and off-highway vehicles.
  • EU van CO2 targets are coming and a truck CO2 strategy is being developed.
  • Government has introduced a consumer incentive to encourage the purchase of electric cars.

Sustaining the supply chain

The strength and capability of the automotive supply chain is a crucial factor in driving growth and attracting inward investment – a point reinforced by the publication of the Automotive Council study Growing the Automotive Supply Chain. There is genuine interest and commitment from global vehicle manufacturers (OEMs) to source more components in the UK which would stimulate employment levels and reduce carbon footprint. At the same time, the global transition to low and ultra-low carbon technologies and fuels provides the UK supply chain with new opportunities.

In responding to these needs, SMMT hosted a number of ‘Meet the Buyer’ events. These events are designed to match OEM sourcing demand to local suppliers and help to retain and build supply chain relationships in the UK. Other Automotive Council reports are available via the website, including:

  • Automotive Technology and Manufacturer Readiness Levels.
  • Automotive Technologies: The UK’s current capability (including sticky technologies).
  • Commercial Vehicle and Off-highway Vehicle roadmap.

EU Van CO2

In 2010, EU Van CO2 targets were agreed and industry then began working with UK and EU regulators to consider the way forward for a truck CO2 strategy.

The Van (Light Commercial Vehicle) CO2 Regulation (EU) No. 510/2011 mirrors the New Car CO2 Regulation No. (EC) 443/2009 with each manufacturer having its own overall European fleet average CO2 target.

Plug-In Car Grant

Government’s Plug-In Car Grant began in January 2011, offering 25% off the list-price of new plug-in cars, up to a maximum £5,000.

Visit the Office for Low Emission Vehicles’ website to find out more about the Plug-In Car Grant.

From September 2011, SMMT will publish Electric and Alternatively-Fuelled Vehicle registration figures on a monthly basis, including data for the year-to-date.

Plug-In Van Grant

Government’s Plug-In Van Grant was announced in January 2012, offering 20% off the list-price of qualifying ultra-low emission vans, up to a maximum £8,000.

The Government is adopting a ‘technology neutral’ approach to reducing emissions from transport. This means that any van which meets the criteria below will be eligible for the subsidy.

Both private consumers and businesses can benefit from the Plug-In Van Grant when purchasing a qualifying ultra-low emission van and registering it in the UK. The vans eligible for the Plug-In Van Grant will be announced shortly.

Van eligibility

Vehicles must have been confirmed by Government as eligible under the rules of the scheme in order to receive subsidy:

Vehicle type Only new vans are eligible (vehicle category ‘N1’ with a gross weight of 3.5 tonnes or less). This includes pre-registration conversions (normal, internal combustion engine vans that were converted to battery or hybrid versions by specialist convertors before the car’s first registration).
Carbon dioxide exhaust emissions Vehicles must emit less than 75 grams of carbon dioxide (CO2) per kilometre driven.
Range Eligible fully electric vans must be able to travel a minimum of 60 miles between charges. Plug-in hybrid electric vehicles (PHEVs) must have a minimum electric range of 10 miles.
Minimum top speed Vehicles must be able to reach a speed of 50 miles per hour or more.
Warranty Vehicles must have: 

  • a 3-year or 60,000-miles vehicle warranty (guarantee)
  • a 3-year battery and electric drive train warranty, with the option of extending the battery warranty for an extra 2 years

‘Drive train’ means the parts that send power from the engine to the wheels. These include the clutch, transmission (gear box), drive shafts, U-joints and differential.

Battery performance Vehicles must have: 

  • either a minimum 5-year warranty on the battery and electric drive train as standard
  • or extra evidence of battery performance to show reasonable performance after 3 years of use
Electrical safety Vehicles must comply with certain regulations (UN-ECE Reg 100.00) that show that they are electrically safe.
Crash safety To make sure cars will be safe in a crash, they must either have: 

  • EC whole vehicle type approval (EC WVTA, not small series)
  • or evidence that the car has appropriate levels of safety as judged by international standards

Visit the Office for Low Emission Vehicles’ website to find out more about the Plug-In Van Grant.

TSB drives sustainable innovation

The Technology Strategy Board (TSB) is a public body that brings together businesses to drive innovation with an emphasis on sustainability. TSB has created Integrated Delivery Programme to coordinate the UK’s low carbon vehicle activity from initial strategic research through collaborative research and development, leading to the production of demonstration vehicles.

Click through for more detailed information about the TSB ultra-low carbon vehicle demonstrator programme.

Further information

The 12th Edition of SMMT’s Sustainability Report covers 2010 data.

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

The following links take you to the most recent data:

If you wish to read the report offline, click here to download the 2011 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.

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