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business environment

Some good news for the UK

A resurgent car industry

Amid the economic gloom, BMW/Mini and Jaguar Land Rover (JLR) have announced major investments in UK car production. BUSINESS REVIEW asked Russell Wareing to investigate further

Jaguar

UK vehicle manufacturers are predicted to produce 2.2 million cars and commercial vehicles by 2016. There has been a strong rebound in output since the credit squeeze of 2009 (Figure 1), with production expected to surpass pre-recession levels by 2014. The automotive sector generates over £50 billion in annual turnover, employing over 145,000 people directly in production and approximately 730,000 in total.

The UK is home to seven volume car manufacturers (Nissan, JLR, BMW/Mini, GM/Vauxhall, Toyota, Ford and Honda), eight commercial vehicle manufacturers, 11 bus and coach producers and many more niche and specialist vehicle manufacturers (Table 1). Eight Formula 1 teams also operate from the UK. The supply chain has more than 2,350 component manufacturers.

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