A positive outlook for UK Car Manufacture?

Following Fords announcement that it will cut several hundred jobs in Europe and Vauxhall suspending production for one week at its Ellesmere Port and Luton Facilities, UK car manufacturers may well be wondering what all this means for the future. Especially as this news appears to run contrary to the positive signs identified in the recent report from SMMT and KPMG, which has emphasised that the UK is the ‘destination of choice’ for global car manufacturers.

So is car manufacture in the UK under threat or is it still a ray of sunshine in contrast to general manufacturing gloom?

Certainly, there are a number of good news stories from manufacturers such as Toyota, BMW, Nissan and Jaguar Land Rover. They have all invested large amounts of money into their UK facilities within the last 18 months, creating thousands of skilled jobs and sending a positive message to the world about UK’s manufacturing capability.

The strength of the supply chain structure in the UK continues to attract car manufacturers, with UK OEMs (Original Equipment Manufacturers) growing stronger because of continuing commitment by car companies to increase standards with long term goals.

Once you add to this the fact that corporation tax is lower than many other European countries, the UK government’s support of OEMs and R&D and the export focus to countries outside of the EU, the UK continues to be an attractive investment option for leading car manufacturers across the globe.

So despite the news of some cutbacks, the UK car industry is still looking strong and confident that it can remain the car manufacturers “destination of choice’ for the foreseeable future.