Auto Industry Development in the UK - Essay Example

Auto Industry in the United Kingdom This paper encompasses a discussion of the auto industry in the United Kingdom. More specifically the discussion includes three representative examples of the auto industry in the UK. One of the companies discussed originates in the UK and the other two are based elsewhere. The three representative examples that will be discussed are Bristol Cars, Ford Motor Company and Mercedes Benz. Car Industry in the United Kingdom: The car industry is a huge industry for the United States and many other countries of the world. "The world's leading vehicle and automotive component companies have long seen the UK as being an important location for manufacturing." (Auto Industry 2005) Following the setting up of a number of UK-based companies, US-owned Ford first established a plant here in 1911, since joined by other investors including General Motors, BMW, Honda, Nissan, Peugeot and Toyota. Bristol Motors originated and is still based in the UK and Mercedes Benz is a representative of the market of the auto industry in the UK as well. The auto industry is paramount and is significant in the UK as it is to the economies all over the world. According to Auto Industry "the automotive manufacturing sector contributes around 8.4bn added value to the economy, and accounts for 1.1% of GDP, 5.8% of manufacturing value-added and 9.5% of total UK exports of goods. Some 237,000 people are employed in the design and manufacture of vehicles and components. The West Midlands remains the heart of the industry in the UK with around 30% of the industry being based in the region. The UK is home to the world's most successful motorsport industry as well as a range of smaller producers serving specialist markets such as sports and luxury cars, and London taxis. 17 of the top tier one suppliers and around 20 leading independent automotive design firms also have a base in the UK. (2005) The automotive industry is an essential element of the UK manufacturing sector. The automotive companies are "leaders in global best practice in many areas of manufacturing and provide a key source of improvement for the UK manufacturing sector as a whole. The UK industry as a whole needs to make up ground in terms of productivity but the productivity record of the best firms here show that UK based operations can match and exceed the best of their rivals." (Auto Industry 2005) In addition, the automotive manufacturers that are based in the UK have a global effect. The UK has an internationally exclusive quality improvement initiative that is operated and operated by the Society of Motor Manufacturers and Traders' Industry Forum. The purpose of these types of programmes benefit the automotive manufacturers in several ways. An example of these benefits includes increasing h the competitiveness of the companies, which ultimately result in more profits for them. Auto Industry reports, "typical improvements have been in the region of 30% reduction in costs and corresponding improvements in quality and delivery." (2005) As well as the above discussed there are more than a thousand automotive component suppliers that manufacture their products in the UK. These companies include Visteon, Federal-Mogul, TRW Bosch and Delphi. d TRW. "UK-owned component manufacturers like GKN, Unipart and Pilkington are among the most renowned in the world. Top Japanese suppliers, including Ikeda, Yutaka Giken, Denso and Calsonic have been attracted to the country, mainly following in the wake of the Japanese-owned Vehicle Makers." (Auto Industry 2005) taking into consideration what has been discussed regarding the auto industry in the UK; three representative auto companies will be discussed. The companies Bristol, Ford and Mercedes Benz will be used as a discussion as representative companies of the auto industry in the UK. Bristol Cars: ' Bristol Cars is a manufacturer of luxury automobiles that is based in the UK. Bristol manufactures hand-build cards and they are based in Filton, which is near Bristol England, hence the name. Bristol is different from other manufacturers in the car industry in several ways. One is that the cars they manufacture are hand-built and the other factor that separates them from other car manufacturers in the industry is that they do not have dealerships. Rather they deal directly with the customers. However, Bristol Cars does have a showroom in Kensington in London. Bristol claims "to be the last wholly British-owned luxury car builder" (Bristol Cars.com 2005) . Bristol Cars is not a mass manufacturer of autos or auto parts. Since their autos are hand-built and quite expensive, they only manufacture a few cars each year. Historically, the number of cars that Bristol manufactures each year is very small for the reasons just discusses. According to Auto Industry, "his cars have only ever been made in very small numbers; about 150 per year, although the company have long refused to disclose production numbers and the current production (in 2004) is probably much less than this figure." (2005) Bristol Cars is the manufacturer of Rolls Royce automobiles. . Mercedes Benz: Although not originated in the UK, Mercedes Benz is very much part of the auto industry there. Their UK operations distribute passenger cars, trucks and vans in the UK. Mercedes Benz are German car manufacturers of these classic automobiles. Although Mercedes does not rate as high as Bristol Cars in the terms of the cars they manufacture and hand build, Mercedes is known for being one of the finest autos manufactured and distributed in the auto industry and they are also the oldest. The origins of Mercedes Benz can be traced back as far as the 1880s in Stuttgart Germany. Mercedes Benz is very much a part of the auto industry in the UK and many other parts of the world. The company is known operated by Daimler Chrysler and they are part of the UK Mercedes Benz entity as well. The Mercedes Benz that is American manufactured is of the same high quality as those manufactured in Germany. The vehicles that are distributed in the UK auto industry are high quality premier automobiles just as they are known for anywhere else in the world. The focus of Mercedes Benz is on "high quality and state of the art engineering. As a result they have often been expensive and are made in lower volumes compared to cheaper cars." (Mercedes 2005) The company has taken great care over the years to cultivate an image. This image that Mercedes Benz has built is one that encompasses excellent engineering, quality. The superiority of Mercedes Benz also encompasses the service that is provided for owners of these autos. Many times the vehicles are the chosen auto for the rich and the famous and this adds to the allure and find reputation of the autos. Mercedes Benz also distributes a state of the art limousine, which is available in the UK as well. Ford Motor Company: Ford Motor Company has revenue of over $178 billion and employees over 300,000 people across the globe. The Ford World Headquarters is in Dearborn Michigan but Ford Motor Company has plants and dealerships across the globe, including in the UK. Although Ford Motor Company does not manufacture hand built cars like Bristol or have, the reputation that Mercedes Benz does Ford Motor Company is a major sector of the auto industry. In fact, they make up over one third of the auto industry in the world. Ford is known as one of "the big three" which refers to Ford, General Motors and Chrysler giants of the auto industry. Ford manufactures sports cars, passenger cars, economy cars and they have been very successful with their trucks. Ford introduced methods for large-scale manufacturing of cars. In addition to being the innovators for mass production of the automobile Ford Motor Company is also responsible for large-scale management of an industrial workforce. It was the combination of these two factors implemented by Ford that is responsible for what is now commonplace in the auto industry-the assembly line. In the beginning when Ford manufactured and distributed vehicles in Germany and the United Kingdom, they build different models. Different in the respect that the models were literally different from one another. Ford did this until the Ford Capri and Escort models became available then they changed their strategy. The highly successful Ford Taurus and Cortida is an example of cars manufactured by Ford that are so similar they are almost identical to one another. Ford has had s series of models that they converted from right to left side steering for the UK and other markets. These models have been highly successful in both the United States and the United Kingdom. "In 2001, Ford ended car production in the UK. It was the first time in more than eighty years that Ford cars had not been made in Britain, although production of the Ford Transit| van continues at the company's Southampton facility, engines at Bridgend and Dagenham, and transmissions at Halewood." (Wikipedia 2005) Conclusion: In conclusion, it can be said that the auto industry is alive and well in the United Kingdom and always has had its place there. The industry is part of the UK in every aspect from the hand built one of a kind Rolls Royce made by Bristol Cars, originated, and making its home in Bristol England, to the premier luxury car that the Mercedes Benz offers to the mass-produced Ford cars, trucks and vans. The auto industry is a huge one that has an Impace on the economy in a global sense. The United Kingdom has been a part of that spirit for many years and will be a significant part of the auto industry for years to come. In addition to the three rep[preventative examples of the auto industry that have been presented in this discussion there are plenty of other auto manufactures and distributors that are involved in the auto industry of the United Kingdom. The auto industry has historically been successful in the United Kingdom and based upon its past track record in the auto industry, will be for many more years to come. References Auto Industry. (2005) "UK Profile" As viewed on the Worldwide web at URL http://www.autoindustry.co.uk/ukprofile Bristol Cars.Com (2005) "Bristol Cars" As viewed on the Worldwide web at URL http://www2.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc.html Ford Motor Company. (2005) "Company" As viewed on the Worldwide web at URL http://www.ford.com/en/default.htm Mercedes Benz UK (2004) "Products and services" As viewed on the Worldwide web at URL http://www2.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc.html Read More