BRIEFING PAPER
Number 00611, 5 October 2015
The motor industry:
statistics and policy
By Chris Rhodes
Dominic Sear
Inside:
1. Contribution to the economy
2. Production, exports and
registrations
3. Future of car manufacturing
in the UK
4. Government assistance
5. Volkswagen and vehicle
emission testing
www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | papers@parliament.uk | @commonslibrary
Number 00611, 5 October 2015
Contents
Summary
3
1.
1.1
1.2
Contribution to the economy
Economic output
Employment
4
4
6
2.
2.1
2.2
2.3
2.4
Production, exports and registrations
Vehicle production
Overseas investment
Trade
UK demand for cars
7
7
8
9
11
3.
Future of car manufacturing in the UK
12
4.
4.1
4.2
4.3
4.4
Government assistance
Coalition Government policy
Automotive Council
Automotive Assistance Programme, closed December 2010
Vehicle scrappage scheme, closed March 2010
13
13
14
15
16
5.
Volkswagen and vehicle emission testing
18
Contributing Authors:
Cover page image copyright:
Chris Rhodes and Dominic Sear
Carpark new cars - No attribution required
2
3
The motor industry
Summary
Key statistics:
•
The UK motor vehicle manufacture industry contributed £12 billion to the economy in
2014, 0.8% of total output, but 8% of manufacturing output
•
The industry employed 142,000 people across Great Britain in 2013 – 1% of the total
•
There were 1.6 million vehicles produced in the UK in 2014, 78% of which were
exported
•
The value of exports totalled £26 billion in this industry in 2014 but imports totalled £28
billion, so a trade deficit of £2 billion was recorded
•
New car registrations reached the highest level in a decade, with over 2.4 million in
2014
This note sets out further statistics on the motor industry. It also sets out examples of recent
investments in the sector, and industry expectations for the future. It outlines some key of
Government policies that support the industry. There is a brief discussion of the allegations
regarding Volkswagen emissions testing.
Number 00611, 5 October 2015
1. Contribution to the economy
1.1 Economic output
The motor vehicle manufacturing industry is defined as including the
manufacture of parts, bodies and trailers for cars and commercial
vehicles.
The industry was worth £12 billion in 2014.
Economic output of the UK motor industry
£ billions, Real terms (2011 prices)
14
12
10
8
6
4
2
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Steady output from the early 1990s until the mid-2000s was followed
by a significant fall in output during the recession of 2008 and 2009.
Output has since picked up and in real terms, car manufacturing was
worth more in 2014 than in any year since at least 1990.
Due to this increase in output, the car industry’s importance to the
whole manufacturing industry has increased. In 2007, the
manufacturing of motor vehicles accounted for 5.4% of UK
manufacturing. In 2014 it accounted for 7.9%.
However, motor vehicle manufacturing as a percentage of total UK
output has declined, falling from 1.4% in 2007 to 0.8% in 2014.
4
5
The motor industry
Economic contribution of the motor vehicle manufacturing industry
UK
£ billions
Current
prices
Real terms
% of
manufacturing
% of UK total
1997
9.9
10.5
6.8%
1.3%
1998
9.0
11.0
6.2%
1.9%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
8.6
9.9
8.3
8.5
7.9
7.6
8.4
8.3
7.7
8.4
6.7
8.6
10.2
10.2
11.1
12.0
11.2
10.6
10.0
10.8
11.1
11.3
11.1
10.7
11.2
10.6
7.5
9.0
10.2
10.6
11.5
12.5
6.1%
6.9%
6.0%
6.2%
5.8%
5.6%
6.0%
5.8%
5.4%
5.7%
4.9%
6.0%
7.0%
6.9%
7.5%
7.9%
1.6%
1.3%
1.4%
1.4%
1.3%
1.3%
1.2%
1.2%
1.4%
1.1%
0.7%
1.1%
1.2%
1.1%
0.7%
0.8%
Source:
ONS, Quarterly National Accounts , Low level aggregates tables
Note:
Economic contribution is Gross Value Added (GVA)
Includes manufacture of motor vehicles, trailers and half trailers
Real terms data are in 2011 prices
Number 00611, 5 October 2015
1.2 Employment
There were 142,000 employees in the motor vehicle manufacturing
industry in Great Britain in 2014.
Motor manufacturing employees
Great Britain; 1000s
500
400
300
200
100
0
1971
1976
1981
1986
1991
1996
2001
2006
2011
Sources: 71-81: Census of employment (SIC68); 81-91: Census of employment; 91-98: Annual employment survey
98-08: Annual business inquiry; 09-14: Business register and employment survey
The different sources use different methodologies and industrial definitions. They should be compared with caution.
In common with many manufacturing sectors, increases in productivity
and the growth of other industrial bases (particularly in the Far East)
have led to significant falls in the number of people employed in the
manufacture of motor vehicles in Great Britain, from 502,000 in 1971
to the current total of 142,000.
Employment by region
The West Midlands dominates the industry in Great Britain.
Employment in the manufacture of motor vehicles
2014
West Midlands
North West
North East
South East
Yorkshire and The Humber
Wales
East Midlands
South West
East
London
Scotland
Great Britain
000s
% of
manufacturing
% of
employment
49.9
17.6
13.6
12.7
11.7
9.4
8.1
7.3
5.3
4.2
2.4
17%
6%
12%
5%
4%
6%
3%
3%
2%
4%
1%
2%
1%
1%
0.3%
1%
1%
0.4%
0.3%
0.2%
0.1%
0.1%
142.2
6%
1%
Source: ONS Nomis database, Business Register and Employment Survey
50,000 employees in the industry work in the West Midlands, 35% of
the total.
6
7
The motor industry
2. Production, exports and
registrations
2.1 Vehicle production
Vehicle production peaked in 1972 in the UK at 2.3 million and fell
through the 1970s before picking up again in the mid-1980s and
1990s, as a result of foreign investment. For example, Nissan opened
their first European plant in Sunderland in 1986.
UK vehicle production (cars and commerical vehicles)
(millions)
2.5
2.0
1.5
1.0
0.5
0.0
1971
1976
1981
1986
1991
1996
2001
2006
2011
Vehicle production fell by over 30% in 2009 following the global
recession. Production of vehicles has still not returned to its prerecession level. Production in 2014 did not surpass any year’s output
between 1994 and 2008.
The production of passenger cars increased in 2014 by 1% to 1.5
million. And, in the first 6 months of 2015, 3 cars were built every
minute in UK manufacturing plants. 1
However, the production of commercial vehicles fell by almost 20% to
just 71,000 the lowest since 1970.
See page 18 for historic car vehicle production numbers.
1
The Guardian, UK car industry reports best half-year output since financial crisis, 23
July 2015
Number 00611, 5 October 2015
UK Vehicle Production
Millions
2007
2008
2009
2010
2011
2012
2013
2014
Passenger cars
1.63
1.45
1.00
1.27
1.34
1.46
1.51
1.53
Commercial
vehicles
0.22
0.20
0.09
0.12
0.12
0.11
0.09
0.07
All vehicles
1.75
1.65
1.09
1.39
1.47
1.58
1.60
1.60
% change on
year
6.1%
-5.8%
-33.9%
27.8%
5.1%
7.6%
1.3%
0.1%
Source: SMMT: Vehicle production press releases
2.2 Overseas investment
There are now no British owned mass car manufacturers operating in
the UK. Yet, as in the 1980s, the UK has been successful in attracting
foreign investment in recent years.
The UK is home to seven foreign volume car manufacturers, with other
companies specialising in commercial or luxury brands. A number of
motor companies have made recent decisions which have favoured the
UK. For example:
•
•
•
•
•
Honda are almost doubled production at their Swindon plant in
2012; 2
Toyota added 1,500 jobs to its Burnaston plant in 2012 3
GM announced it would be manufacturing the next generation
Astra at Ellesmere Port from 2013 4
Jaguar Land Rover invested £400 million in a new engine plant,
equipment and the expansion of its design centre in 2015
China’s Zhejiang Geely Group is to spend £250m on a new
factory for the London Taxi Company, creating 1,000 jobs in
2015 5
However, Goodyear, a major international tyre producer announced the
closure of its only UK based tyre manufacturing plant, costing over 300
jobs, in 2015. 6
2
3
3
5
6
Financial Times, Honda aims to double production in Europe, 13 February 2012
BBC News, Toyota jobs offered at Burnaston factory open day, 14 January 2012
BBC News Vauxhall's Ellesmere Port plant to build new Astra, 17 May 2012
Telegraph Britain’s motor industry gets £650m boost, 25 March 2015
The Guardian, Goodyear to close UK manufacturing plant, putting 330 jobs at risk
25 June 2015
8
9
The motor industry
2.3 Trade
Value of car trade
The value of car exports from the UK in 2014 totalled £26 billion, up
from £25 billion in 2013. However, the value of imports was £28 billion
in 2014, meaning a trade surplus trade surplus was recorded.
Balance of trade in cars (exports minus imports)
Annual data, £ billions
0
-1
-2
-3
-4
-5
-6
-7
-8
-9
-10
1997
1999
2001
2003
2005
2007
2009
2011
2013
Car exports have grown strongly since the recession ending in 2009,
and despite falling in 2014, exports increased by 117% between 2009
and 2014.
In Q1 2012, the first quarterly trade surplus in cars was recorded since
1976. 7
Number of cars traded
In total 1.3 million vehicles were exported from the UK in 2014,
equivalent to 78% of all vehicles produced here.
53% of vehicles exported were to the EU. 12% of exports were to
China. 8
7
8
“Car trade in first surplus since 1976”, City AM, 16 May 2012
SMMT, Motor industry facts 2015, 2015
Number 00611, 5 October 2015 10
UK trade in passenger motor cars
Annual data, £ billion
Exports
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
8.6
8.9
8.8
9.7
9.3
8.1
10.5
11.4
12.2
13.3
12.8
14.4
15.3
11.8
17.1
20.1
21.5
24.4
25.7
Imports
11.3
13.6
14.1
14.9
13.9
17.1
18.4
18.9
19.2
19.4
19.7
22.0
19.7
16.6
20.2
21.5
21.8
24.7
28.1
Source: UKTradeInfo database
Note: Balance is exports minus imports
Balance
-2.7
-4.7
-5.3
-5.2
-4.6
-8.9
-7.9
-7.6
-7.0
-6.2
-6.9
-7.6
-4.4
-4.7
-3.1
-1.3
-0.3
-0.3
-2.4
11 The motor industry
2.4 UK demand for cars
New vehicle registrations in the UK declined between 2003 and 2011
from 2.6 million to 1.9 million. 9
Since then numbers have slowly risen and in 2013, 2.3 million cars were
registered in the UK, up 11% on the 2012 figure, but still around 12%
below the figure in 2003.
New car registrations reached a 10 year high in 2014 at 2.5 million. This
is a 24% increase on the low recorded in 2009.
New car registrations in the UK
Millions
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2002
9
2004
2006
2008
2010
2012
SMMT, First registration of new vehicles, Press releases (annual data)
2014
Number 00611, 5 October 2015 12
3. Future of car manufacturing in
the UK
There have been concerns raised for the motor industry across Europe,
with a potentially big impact on the UK motor manufacturing sector.
As The Economist reported: 10
Sales in Europe tumbled in the 2008 financial crisis, and have
fallen every year since. Only 12.4m cars were sold in 2013, nearly
4m fewer than in 2007. But early this year a rebound began, and
sales so far this year are up 6%.
Unfortunately, it already seems to be fading. Gloomier analysts
predict that after an increase of just 2% for this year as a whole,
there may be no growth in 2015. Even if the recovery is stronger,
IHS, a research firm, expects that demand will remain well below
pre-crisis levels in 2020.
This is grim for the firms which lean most heavily on Europe. PSA
Peugeot-Citroën of France relies on the continent for almost
three-quarters of revenues, though it hopes a recent tie-up with
Dongfeng of China will boost sales there. Fiat’s merger with
Chrysler has provided insulation, but as with Ford and General
Motors, Europe is still an open wound. All the mass-market firms
lost money in the region last year, with the exception of VW.
The implications for the UK automotive manufacturing industry will
depend on how attractive it remains to foreign investment compared
with other European countries. In turn, this will depend on the
productivity at UK plants, exchange rates, and the sustainability of
demand.
Despite fears about the future of vehicle manufacture throughout
Europe, there have been many positive reports and announcements
concerning the future of the UK motor industry. Mike Hawes, the CEO
of SMMT (the Society of Motor Manufacturers and Traders) commented
that
Vehicle production is expected to grow strongly over the next few
years to record levels, as investment spending is realised. The
vehicles that are being produced are being done so with less
energy, water and waste. 11
10
11
Economist, Polishing up, October 2014
SMMT, 2015 sustainability report, 2015, p2
13 The motor industry
4. Government assistance
4.1 Coalition Government policy
The previous Government’s key measures to support the motor industry
were outlined in their strategy for the industry – Driving success: UK
automotive strategy for growth and sustainability. 12
The automotive sector has also benefited from wider initiatives which
aim to support manufacturing and promote business growth in general,
such as the Regional Growth Fund.
For example, DTR VMS Ltd., a components manufacturer, has, secured
more than £3 million from the Regional Growth Fund (RGF) which has
helped to raise private funding as part of a £12.7 million investment in
plant facilities.
A parliamentary answer from April 2012 gives further examples of
support given to the automotive industry:
On 23 March, the Secretary of State for Business, Innovation and
Skills, the right hon. Member for Twickenham (Vince Cable),
announced that the £125 million Advanced Manufacturing Supply
Chain Initiative will open for applications from across advanced
manufacturing sectors—including automotive. This opened on 29
March. This initiative will provide grants and loans to successful
projects demonstrating real ambition to create globally
competitive supply chains. There will be briefing for interested
businesses and more information on the criteria of the fund, time
scales, eligibility and how to bid will be available at:
www.innovateuk.org
A number of automotive companies have received a conditional
allocation of funding under the first two rounds of the Regional
Growth Fund; including Getrag-Ford Transmissions, JCB, Nissan,
Zytek Automotive, Bentley, Cummins and BMW.
There are also a range of other initiatives that will benefit UKbased suppliers to the automotive industry and other sectors. For
instance, the Department is providing an additional £7 million
funding for the Manufacturing Advisory Service to deliver supply
chain activities over the next three years.
We are also providing support for research, development and
demonstration projects. Government have made provision of over
£400 million through the Office for Low Emission Vehicles (OLEV)
to promote the uptake of ultra-low emission vehicles. The latest
competitions supported by the Technology Strategy Board to
accelerate the commercialisation of low carbon vehicles includes
up to £25 million for collaborative research and development
(with OLEV) and £9.5 million for a low carbon truck
demonstration trial (with the Department for Transport). 13
BIS, Driving success: UK automotive strategy for growth and sustainability, 12 July
2013
13
16 Apr 2012 : Column 287W
12
Number 00611, 5 October 2015 14
The Coalition Government also announced the following key policies to
help the industry:
•
•
•
•
£1bn co-funded Advanced Propulsion Centre to develop new
technologies
A target of 7,600 apprentices and 1,700 graduates to be recruited
over the next five years
Automotive Investment Organisation set up to support inward
investment. 14
£30 million investment on motor industry skills development 15
Further information on policies to help manufacturing in general can be
found in the House of Commons Briefing Paper, Manufacturing:
Statistics and Policy and in Industrial policy, 2010 to 2015.
4.2 Automotive Council
The United Kingdom Automotive Council was established in December
2009. Its aims are listed as follows:
•
•
•
•
•
Create a transformed business environment for the automotive
industry in the UK to provide a more compelling investment
proposition for related industries;
Develop further the technology roadmaps for low carbon vehicles
and fuels, and exploit opportunities to promote the UK as a
strong candidate to develop these and other technologies;
Develop a stronger and more competitive automotive supply
chain;
Provide a stronger public voice for the industry to support the
value of the industry to the UK and to global partners;
Ensure a strategic, continuous conversation between Government
and the automotive industry in the UK. 16
Two sub-groups have been formed: a supply chain group and a
technology group.
In a June 2012 speech to the SMMT the Vince Cable stated that in his
view the Automotive Council provided “exactly the right kind of
relationship between companies within the industry and the
Government”:
It’s not intervening, trying to tell you what to do as part of a
central plan but it’s a mechanism to get a high level conversation
about how you develop the supply chains, how you develop the
new technologies which are unlikely to develop spontaneously,
how to develop future low carbon products, addressing the issue
of skills and having a good commercial environment. So it is a
good collaborative approach, it isn’t a cartel, it’s sensible and
collaborative and that’s exactly what we need to have. 17
BIS, Industrial strategy explained, 16 September 2013
“Government and automotive industry start the motor on £30 million skills
investment”, www.gov.uk, 20 January 2015
16
For more information see the Automotive Council pages on the BIS website
17
Speech given by Rt Hon Vince Cable MP to the SMMT International Automotive
Summit, June 2012
14
15
15 The motor industry
In June 2013, the Automotive Investment Organisation (AIO) was
created. The AIO:
•
•
•
•
Takes ‘strategic direction from the Automotive Council’
Aims to ‘increase foreign investment in the automotive supply
chain’ and to promote research and development
Strengthens links between ‘global automotive HQs’ and the
government
Helps investors by tailoring investment propositions for individual
investors and working with investors to develop their
understanding of the UK’s motor industry
4.3 Automotive Assistance Programme,
closed December 2010
On 27 January 2009 Lord Mandelson, then Secretary of State for
Business Innovation and Skills, announced a new loan facility to support
the automotive industry. The scheme operated until December 2010.
Lord Mandelson told the House of Lords that loan guarantees would be
provided to Britain’s auto manufacturers and large suppliers:
… First, we will offer guarantees to unlock loans of up to £1.3
billion from the European Investment Bank. Secondly, we will
offer guarantees to support up to a further £1 billion of lending,
or loans, where appropriate, to cover worthwhile investments not
eligible for EIB support or which will bring special value to
Britain. 18
Applications would be assessed on a case-by case basis. To be eligible,
companies needed to have a turnover of at least £25 million per year,
and, at least at the start of the scheme, should be proposing an
investment of at least £5 million. Further criteria were that:
•
Investment proposals should be consistent, deliver new
activity or investment that would not happen without the
provision of Government support and be consistent with
the Government’s objectives for the low carbon economy;
•
Proposals should be in need of a Government guarantee in
respect of lending from the EIB or another bank; as a
general rule, it is not intended that guarantees would
exceed 75% of any loans, although the Temporary State
Aid Framework provides flexibility to consider guarantees
up to 90%. In addition, the Government is also prepared
to consider direct loans in exceptional circumstances.
•
Companies should be viable as at 1 July 2008. 19
Further details are available on the Automotive Assistance Programme
archived pages of the Department for Business, Innovation and Skills
(BIS) website.
18
19
HL Deb 27 Jan 2009 c178
As described by the Business and Enterprise Committee in their report on The
Automotive Industry in the UK, HC 550 2009-10
Number 00611, 5 October 2015 16
The Business and Enterprise Committee considered the scheme in their
2009 report on The Automotive Industry in the UK. The Committee
found that the scheme had been “slow to produce results”. At the
time of their report, not “a single penny” had been advanced through
the scheme. 20 The Committee noted that a particular difficulty of a loan
guarantee scheme was it depended “on the existence of loans to
guarantee”. 21
Only one loan appears to have been made under the scheme. In their
February 2011 report on Government Assistance to Industry, the
Business and Innovation Select Committee explained that three other
formal offers of support had been made but turned down by the
companies who had been able to access finance elsewhere:
93. The Department told us that the AAP had provided a £360
million loan guarantee to Ford Motor Company Ltd, in support of
a £450 million loan from the European Investment Bank (EIB) to
fund six projects in the UK worth a total of £1.5 billion. The
projects included R&D and production investment relating to new
generation, environmentally friendlier, vehicle and engine
technologies.
94. In addition, the Department stated that an additional three
formal offers of support were made to General Motors Europe,
Jaguar Land Rover, and Tata Motors European Technical Centre
(TMETC). However, these were not taken up due to the
applicants’ success in accessing financial support elsewhere. 22
4.4 Vehicle scrappage scheme, closed
March 2010
The then Chancellor, Alistair Darling, announced the introduction of a
car scrappage scheme in the Budget on 22 April 2009. It was intended
to “give a boost to the car industry during the current downturn”. 23
The scheme was officially launched on 18 May 2009 and closed in
March 2010. The Government originally put £300 million towards
funding the scheme. This was increased by £100 million, to a total of
£400 million
A car that was first registered in the UK before 29 February 2000 (28
February 2002 for vans) could be traded in for a £2,000 discount on the
purchase of a new vehicle, as long as certain conditions were met. The
manufacturer of the new vehicle had to be signed up to the scheme.
Of the £2,000 discount, the Government provided £1,000 and the
manufacturer provided the other £1,000. A total of 39 manufacturers
signed up to the scheme.
20
21
22
23
Ibid, para 31
Business and Enterprise Committee, The Automotive Industry in the UK, 17 July
2009, HC 550 2009-10, para 26
Business, Innovation and Skills Committee, Government Assistance to Industry, 18
February 2011, HC 561 2010-12
HM Treasury, Budget 2009, April 2009, HC 407, para 4.16
17 The motor industry
Vehicle registration statistics published by the Department for Transport
show that 395,500 new cars and vans were bought under the scheme
between May 2009 and April 2010. They comment that “This would
have helped increase the overall 2010 volume but the number of new
registrations later in the year fell below the 2009 levels again”. 24
The Department assessed the potential economic impact and forecast
that, in the longer term, the costs of the scheme would exceed benefits
and would not, therefore, provide value for money. The Minister
decided to proceed with the scheme for several reasons including that
sales made during a recession were worth more than those made in the
future, when the sector had recovered and the risk of doing nothing
outweighed the possible scheme costs. As a result of the Minister’s
decision, the Department requested an Accounting Officer Direction.
In March 2010 the NAO published a report which considered the
success of the scheme to date. They commented that:
Before launch, officials estimated the economic costs and benefits
of the scheme. As precise impacts and outcomes were, and still
are uncertain, this work involved making a number of
assumptions. Based on this work, the Department estimated that
the scheme could lead to a short-term gain to the UK of £349
million, but a long-term loss of £55 million. These estimates were
revisited before the scheme was extended in September 2009 and
included information from a survey of those who had purchased a
vehicle recently, including through the scheme; this led to
predicted benefits of £116 million in the short‑term and a lower
than expected loss of £18 million in the long‑term. The estimated
long‑term loss is principally due to two factors:
A prediction that most sales through the scheme would have
happened anyway (this is referred to as deadweight and the
Department estimates that in the short-term some 54 per cent of
sales would occur anyway, rising to 92 per cent in the long-term);
and
Some 85 per cent of vehicles sold in the UK are imported,
although the UK is likely to have benefited from exports to other
countries running similar schemes, and many components are
made here.
Since the inception of the scheme, dealers report an increased
demand for cars, and there has been a modest environmental
benefit as more carbon-efficient cars replace old ones. 25
24
25
Department for Transport
, Vehicle Licensing
Statistics 2010
National Audit Office, Support to Business during a recession, March 2010, HC90
2009-10
Number 00611, 5 October 2015 18
5. Volkswagen and vehicle
emission testing
On the 18th September 2015, the US Environment Protection Agency
alleged that Volkswagen had distorted the results of emission tests on
diesel cars. 26
This caused the Volkswagen share price to drop by almost 20% on two
successive days, and the resignation of the Chief Executive, Martin
Winterkorn. The company announced that 1.2 million cars in the UK
were affected by the relevant engine software. 27
More broadly, the allegations have led to concern about the veracity of
emissions testing and the accuracy of claims from other motor
manufacturers. Mike Hawes, Chief Executive of SMMT commented
that: 28
As the impact of the actions of one manufacturer becomes
clearer, it is the industry that is under intense scrutiny with
consumer confidence in the sector as a whole seriously dented.
The scandal has particularly affected Europe and the UK, partly because
of the popularity of Volkswagen cars but also because of the rise in the
popularity of diesel engines in recent years.
Diesel cars produce less carbon dioxide per kilometre than petrol cars,
and as they sought to meet strict carbon dioxide targets, European
governments introduced a range of different polices to encourage the
production and purchase of diesel powered cars rather than petrol
powered alternatives. These included lower tax on the fuel itself, lower
parking charges and lower rates of road tax for diesel cars.
If the allegations against
Volkswagen do result in a fall in
50%
popularity of diesel cars, then
40%
the automotive industry would
30%
be forced to expend significant
20%
10%
amounts on R&D developing
0%
engines capable of passing
1990
1995
2000
2005
2010
Source: European Automobile Manufacturers Association
emission test that do not use
diesel, and refitting plants currently equipped to produce diesel cars.
Diesel cars as a % of new cars
UK
Further information can be found in the following briefings from the
House of Commons Library:
•
•
VW and vehicle emissions testing
Will the wheels fall off the diesel car boom in the UK?
EPA press notice, “EPA, California Notify Volkswagen of Clean Air Act Violations”, 18
September 2015
27
The Guardian, “VW scandal: 1.2m UK cars affected by emissions device”, 30
September 2015
28
SMMT, Update 388, 5 October 2015
26
19 The motor industry
UK Vehicle Production, 1970-2014
(000s)
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source:
Notes:
Passenger cars
Commercial
vehicles
Total
% change year
on year
1,641
1,742
1,921
1,747
1,534
1,268
1,333
1,304
1,223
1,070
924
955
888
1,045
909
1,048
1,019
1,143
1,227
1,299
1,296
1,237
1,292
1,376
1,467
1,532
1,686
1,698
1,748
1,787
1,630
1,492
1,630
1,658
1,647
1,596
1,442
1,635
1,447
999
1,270
1,344
1,465
1,510
1,528
458
456
408
417
403
381
372
410
385
408
389
230
269
245
225
266
229
247
317
327
270
217
248
193
228
233
238
238
227
186
184
193
191
189
209
207
208
216
203
91
123
121
112
88
71
2,099
2,198
2,329
2,164
1,937
1,649
1,705
1,714
1,608
1,478
1,313
1,184
1,156
1,289
1,134
1,314
1,248
1,389
1,544
1,626
1,566
1,454
1,540
1,569
1,695
1,765
1,924
1,936
1,976
1,973
1,814
1,685
1,821
1,846
1,856
1,803
1,650
1,750
1,650
1,090
1,393
1,465
1,577
1,597
1,599
4.7%
6.0%
-7.1%
-10.5%
-14.9%
3.4%
0.5%
-6.2%
-8.1%
-11.2%
-9.8%
-2.3%
11.5%
-12.1%
15.9%
-5.0%
11.4%
11.1%
5.3%
-3.7%
-7.1%
5.9%
1.9%
8.0%
4.2%
9.0%
0.6%
2.1%
-0.2%
-8.0%
-7.1%
8.1%
1.4%
0.5%
-2.9%
-8.5%
6.1%
-5.8%
-33.9%
27.8%
5.1%
7.6%
1.3%
0.1%
1970-1980 - Mitchell, British Historial Statistics , 1988, p418
1981-onwards - SMMT Press Notices
www.smmt.co.uk/category/manufacturing
1988 and 1993 were 53 week years.
In 1977 estate vehicles of 1.6 to 2.8 litres were transferred between
categories
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