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The UK Automobile Industry - Essay Example

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The UK Automobile Industry

Research and development along the years led to the opening and closing of many plants in the UK.
The world's leading vehicle and automotive component companies have long seen the United Kingdom as being an important location for manufacturing. The industry is one that is a strong combination of heritage and change.
The automotive industry in UK contributes around 10 billion GBP annually toward the economy, with 210,000 people employed in the design and manufacturing of vehicles and components and a further of 570,000 in the supply, service and repair segment in the Automotive Industry making the UK automobile industry a major contributor to the economy.
In 2006, 1,442,085 cars were produced, 77 percent of which were for export. U.K. automotive reports indicate a revenue of 20 billion GBP as generated by exports including cars, commercial vehicles and a wide range of components, thus establishing the Automotive Industry in the U.K. as the biggest contributor in the manufacturing export sector (Source - SMMT).
The current market scenario of the UK Automotive Industry is in stark contrast with that which was 40 years ago when most of the manufactured cars were meant for local markets. In today's scenario, most of the produced cars are meant for exports catering to a variety of car markets in Europe, North America and Asia and the specialist marques sold around the globe. There are more than 2600 car component manufacturers in the UK contributing over 4.8 billion GBP and employing over 132,000 people. Thirteen of the world's largest manufacturers from around the globe have some presence in the UK, be it in the manufacturing division or the retail segment.
The Automotive Industry in the UK has the presence of 2 distinct automotive businesses, Japanese and non Japanese. The Japanese vehicle manufacturers who have a base in the UK have improved productivity of the UK automotive industry whilst driving down costs thus displaying exemplary management and contributing to the UK Industry as a whole.
The UK has the most diverse range of car producers in any country in the world. The volume car producers that manufacture in the UK are BMW (Mini, Rolls Royce), Volkswagen (Bentley), Ford (Jaguar, Land Rover), Honda, Nissan, Toyota and GM (Vauxhall / Opel). The total UK manufacturing ...Show more


The beginning of the UK Automotive Industry took place in 1896, when Fredrick Simms collaborated with Gottlieb Daimler who had a manufacturing plant for engines used in boats. The idea came upon Harry J. Lawson to use these engines in motor vehicles who took over the plant from Simms and produced the first automobile in UK.
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