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Gloucestershire Business News

UK car makers drive up use of British parts

Cars manufactured in Britain are becoming more British, according to a new study released today.

The report, Growing the Automotive Supply Chain - Local Vehicle Content Analysis by Automotive Council, shows that 44 per cent of all components used by UK car makers now come from domestic suppliers.

Compared with 41 per cent in 2015 when the study was last carried out and 36 per cent in 2011, the figures are a significant move in the right direction following years of decline in the UK automotive manufacturing.

British car manufacturing hit a 17-year high in 2016 with more than 1.7million vehicles made and since 2009, when the Automotive Council was formed, production has risen more than 72 per cent.

Another measure of success is the amount of locally sourced parts and components used in vehicle manufacturing, because much of the sector's value added is created at the start of the production process.

In regard to output of the UK automotive parts sector, turnover has increased from £9million at the start of 2011 to £12.7billion today, this makes it a 41 per cent rise.

Exhausts, large pressings, small pressings and plastics have all enjoyed growth, though opportunities to increase production capacity in these commodities, and others, remain.

When combined with the increase in the proportion of parts sourced locally, it means domestic suppliers have increased their output by 60 per cent since 2011.

Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes said: "The domestic supply chain is the backbone of UK Automotive and its health is crucial to the success of the whole sector.

"While it is good news that British cars are becoming more British and re-shoring efforts are enjoying success, the process takes considerable time.

"To grow our supply chain further, the long term competitiveness of the UK must be maintained.

"Collaboration with government has been an undoubted factor in the recent success and we hope to continue this approach to ensure the economic and trading conditions we currently enjoy are maintained."

What do you think? Email: mark@moosemarketingandpr.co.uk 

Picture credit: Chief executive SMMT Mike Hawes

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