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Investment Opportunities For Automobile Manufacturing in UK

July 25th, 2011

The UK is the center of diverse automobile manufacturing base in Europe. The automotive sector in the UK is vibrant and world class. Many global automotive companies have set up their base in the UK for its supportive business environment, workforce skills and engineering excellence available.

More than 40 well known automobile manufacturing companies such as Ford, BMW, Nissan, Honda, and Toyota have manufacturing units set up in the UK. The automobile industry is supported by a strong supply chain ranging from world class design, high precision and high performance engineering companies. There are over 10,000 active businesses in the UK automotive sector ranging from small and medium sized manufacturers to large plants controlled by multinational manufacturers. The focus of these businesses is on innovation in technology and component design.

The businesses operating in the automotive sector can be differentiated into five categories
• Component design and manufacture
• Vehicle manufacture
• Construction vehicle manufacture
• High performance motorsport design and manufacture

Key Strengths of the Automotive sector

The UK has an established infrastructure for automotive manufacturing companies. International automotive manufacturing companies have presence in the UK. Component manufacturing companies can sell their products to these multinational companies or overseas. Engineering and design excellence make the UK the front runner in the global automotive industry. There are more than 2,000 small and medium sized businesses involved in motor manufacturing alone.

Preferential Duty rates for importing

The generalized system of preferences (GSP) allows automotive manufacturers to import components from a range of countries at a reduced or zero duty rate. The EU also has trade agreements with third world countries because goods imported from these countries are eligible for preferential rates of duty. Preferential rates are also applicable while exporting to the least developed countries mentioned in GSP. EU goods attract a reduced rate when goods are exported to such countries. It is also easy to trade with EU countries as the UK is part of the EU. The EU market is one single market and there are no trade restrictions for companies based within EU countries. The automotive industry in the UK has a bright future based on demand for sophisticated vehicles that deliver cleaner and more fuel-efficient vehicles. The creativity and inventive nature of the UK automotive industry will play a vital role in the UK’s prosperity.

Advanced Manufacturing

The UK is also known as the European hub for its advanced engineering capabilities in the fields of aerospace, energy, food and drink, automotive, environmental technology, medical and pharmaceutical. The growth in this sector is fueled by advanced materials industry that is forefront in development of new products that gives improved performance and functionality. The UK has high volume of exports when it comes to automotive, construction equipment. The space and aeronautics industry is also a great revenue earner and adds up to 7 billion pounds to the UK’s economy.

To help advanced engineering explore it full potential, the UK offers
• Internationally famed expertise in high quality manufacturing, high precision engineering and metals production
• Over 170,000 qualified people and 1,400 specialist companies
• Availability of large number of precision forgers
• World class science and technology based incubation infrastructure
• Easy access to rapidly growing UK and EU markets
• Manufacturing facilities to produce quality titanium castings
• Unique Advance Manufacturing Park focused on innovation materials research and technology for advanced manufacturing businesses.
• Pioneering R&D

UK businesses enjoy a world class academic and science expertise and link to wide network of leaders in similar businesses throughout the world. The unique multicultural and entrepreneurial economy of the UK brings the world to your company’s door.

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Posted in Auto, Automobile, Cars, Consolidation, Global, Graphs, new, technology, Trends

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What Has Happened to the US Auto Industry and Who is Poised to Succeed?

July 23rd, 2011

Today the global automotive industry faces a brand new set of challenges as well as opportunities. Recent demand for cars, SUV’s and light trucks dropped significantly during the past year as a result of several significant factors including:

o Higher prices at the gas pump
o Deteriorating consumer confidence
o Deterioration in the global economy
o Higher unemployment levels
o Tightening credit requirements
o Lack of availability of credit

These factors have only recently exacerbated the decline of the US-owned automotive companies. For the past twenty five years or so, increased competition, pricing pressures, higher fuel economy requirements, improved quality level from some foreign automotive manufacturer have hurt the US companies’ standings in the global market place. Ford’s US market share has declined from about 25 per cent to about 15 per cent. Since 1982, GM’s market share has deteriorated from about one half of the US market to roughly 25 per cent.

To put this drop into perspective, based on unit sales, Ford used to be the number two automotive manufacturer in the world. By 2007, Ford ranked fourth behind GM, Toyota and Volkswagen. In 2008, Gm slipped into the number two position behind Toyota. Finally, the domestic US market used to be the largest in the world. Today, that position has been taken over by China.

Ford, however, is financially in better shape than the other US automotive manufacturers in today’s environment. By structuring to “spin off” some of its parts businesses and starting to refocus on its core business of manufacturing vehicles, Ford began laying the groundwork to solidify its business base. Eventually, by selling off some of its parts manufacturing operations as well as some of the brands (i.e. Aston Martin, Jaguar and Land Rover) it had acquired earlier, Ford gained cash to be used for other purposes such as funding the development of new vehicles and new technologies required for them to become more competitive and to meet customer needs.

It appears that these actions have generated the cash to help them bring out a stream of new vehicles with enhanced product content, and with product quality equal to or better than its competitors. In addition, Ford remains the only US-owned automotive company that did not have to go begging to the government for “bailout money”. And that’s good for Ford, its shareholders and us, the taxpayers.

Mr. Newman has roughly 40 years of industry experience – 28 years as part of the Ford Motor Company management team, and more recently, as President and COO of the Strategic Alliances Consulting Group, Inc. His business background encompasses a broad spectrum of experience in various disciplines including purchasing, finance, product planning, export planning, business planning and international business development.

During his last 10 years at Ford Motor Company, Mr. Newman successfully negotiated 46 licensing agreements in 12 countries, 9 joint ventures in 4 countries, 6 acquisitions and 2 divestitures. In his capacity as President and COO of Strategic Alliances, in addition to continuing to assist clients with their acquisition and divestiture efforts, Mr. Newman developed a strategic and business planning process which was implemented successfully at many automotive supplier operations in North America and in Europe. This process also was successfully implemented at a charitable organization and several small entrepreneurial business enterprises.

Article Source: http://EzineArticles.com/2570619

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Posted in Auto, Automotive, Cars, Global, Industry, inovasion, new, Sales

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