Tag Archives: Mike Hawes

UK in pole position in £62 billion self-driving car race – if Brexit roadblock removed

  • UK world’s number one location for mass-market potential of connected and autonomous vehicles, with £62bn annual economic opportunity by 2030, finds new report.
  • Massive safety benefits as driver assistance and self-driving tech could prevent 47,000 serious accidents and save 3,900 lives over next decade.
  • Lifestyle boost for commuters as greater productivity and faster journeys give drivers back full working week every year.
  • Success hinges on favourable Brexit agreement, with ‘no deal’ threat putting investment and safety gains at risk, warns SMMT at major industry conference.

The UK is in pole position in the global race to market for connected and autonomous vehicles (CAVs), with a £62 billion boost to the UK economy by 2030 up for grabs, according to a major new report published today by the Society of Motor Manufacturers and Traders (SMMT) and Frost & Sullivan.

Connected and Autonomous Vehicles: Winning the Global Race to Market,1 analyses the wide-ranging societal and economic benefits to be achieved by gradually increasing CAVs on our roads.

The UK is in a strong position to capitalise, with more than £500 million already committed by industry and government to CAV R&D and testing. Autonomous driving trials are taking place in our major towns and cities, we are home to four major CAV test beds and three additional sites focused on highways, rural and parking, with more than 80 collaborative R&D projects underway. The next game-changing step is to move from testing CAV technologies to deployment in the real world.

Advanced driver assistance systems (ADAS) such as Autonomous Emergency Braking and Collision Warning are already available on the majority of new cars registered in the UK.2 Combined with the gradual introduction of automated vehicles from 2021, this will deliver massive safety benefits. Over the next decade, the technology is set to prevent 47,000 serious accidents and save 3,900 lives.

At the same time, some 420,000 new jobs will be created, including in the automotive industry and other sectors such as telecoms and digital services. Driving commuters, meanwhile, will gain back the equivalent of a full working week thanks to more ‘downtime’ and smoother traffic flows during their commute.

Connected and Autonomous Vehicles: Winning the Global Race to Market identifies three critical areas that will help CAV rollout and in which the UK has a significant advantage: supportive regulation, enabling infrastructure and an attractive market.

With the world’s first insurance legislation for autonomous vehicles already in place, the most comprehensive review of road transport underway and more miles across motorways, urban and rural roads able to be driven autonomously, the UK is already ahead of global rivals in its readiness to commercialise self-driving technology.

The report ranks the UK above other major automotive countries, including Germany, US, Japan and South Korea as a global destination for the mass rollout of CAVs.

To realise this potential, however, the conditions must be right, and sustained support from government will be vital – particularly if we are to meet its ambition to get autonomous vehicles on to UK roads in 2021.

The report’s key recommendations for government include updating road traffic laws, improving 4G coverage across all road networks, encouraging local authorities to work with industry to implement urban mobility services and influencing future harmonisation of international regulations to ensure these new vehicles can operate seamlessly between the UK and abroad.

CONNECTED AND AUTONOMOUS VEHICLES ON DISPLAY AT SMMT CONNECTED – MERCEDES-BENZ TRUCK ACTROS 1853, RANGE ROVER SPORT, VOLVO XC60, OXBOTICA, AURRIGO POD, E-CYCLOPIC, BIRD SCOOTER, BOSCH E-BIKE AND CONIGITAL POD

Crucially, however, the UK’s departure from the EU must be orderly with a deal that supports both the industry and technological collaboration, especially in data. A ‘no deal’ Brexit will result in lasting damage to the UK’s reputation as a politically stable destination for inward investment, putting the benefits identified in the report at risk.

Mike Hawes, SMMT Chief Executive, said,

A transport revolution stands before us as we move to self-driving cars and the UK is in pole position in this £62 billion race. Government and industry have already invested millions to lay the foundations, and the opportunities are dramatic – new jobs, economic growth and improvements across society. The UK’s potential is clear. We are ahead of many rival nations but to realise these benefits we must move fast.

Brexit has undermined our global reputation for political stability and it continues to devour valuable time and investment. We need the deadlock broken with ‘no deal’ categorically ruled out and a future relationship agreed that reflects the integrated nature of our industry and delivers frictionless trade.

Sarwant Singh, Senior Partner and Head of Mobility, Frost & Sullivan, said,

The UK already has the essential building blocks – forward thinking legislation, advanced technology infrastructure, a highly skilled labour force, and a tech savvy customer base – to spearhead CAV deployment over the next decade.

However, it will require sustained and coordinated efforts by all key stakeholders, especially the government, to realise the significant annual economic benefits forecast for the UK from CAV deployment by 2030 and drive the vision of safe, convenient and accessible mobility for all.

Connected and Autonomous Vehicles: Winning the Global Race to Market, will be launched today at SMMT Connected 2019, the third automotive industry-led event to explore the future of mass transport and mobility. More than 450 leaders from across the automotive and tech industries, government and other stakeholders are expected to attend to discuss challenges and opportunities in future mobility innovation and deployment. They will hear from speakers including the Right Hon Greg Clark MP, Secretary of State for Business Energy and Industrial Strategy; Dr Andy Palmer CMG, President and Group CEO, Aston Martin Lagonda; and Agustín Martín, CEO, Toyota Connected Europe.

On display at SMMT Connected 2019 will be some of the latest connected and autonomous mobility solutions and prototypes in use in the UK covering four and two wheels. These include: Aurrigo pod, Bird electric scooter, Bosch powered e-bike, Conigital pod, Cyclopic folding e-bike, Mercedes-Benz Actros 1853 4×2 BigSpace, Oxbotica autonomous Ford Mondeo, Jaguar Land Rover self-driving Range Rover Sport and Volvo XC60.

Source: SMMT

British CV production continues dramatic growth in February

  • Number of CVs built in the UK up 53.5% in February, as 9,233 leave production lines.
  • Growth in demand from both overseas and UK markets, up 51.9% and 57.3% respectively.
  • Year-to-date performance rises by 51.3% on same period last year, up 6,241 units.

British commercial vehicle (CV) production increased by 53.5% in February to 9,233 vehicles, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). Strong market incentives ahead of model changes helped boost the month to its best performance since 2012.1

The number of CVs manufactured for both domestic and export markets posted significant gains in the month, growing by 57.3% and 51.9% respectively. Almost seven in 10 British CVs were destined for global markets in February, as demand from overseas continued to drive output.

Year-to-date, the market painted a similar picture, with manufacturing up by 51.3% compared with the same and particularly weak period last year. In the first two months of the year 18,415 vans, trucks, taxis, buses and coaches left British production lines. However, output is expected to slow next quarter in preparation for the subsequent ramp-up for new model lines.

Mike Hawes, SMMT Chief Executive, said,

While the positive news continues for UK CV manufacturing, it’s important to highlight that this low volume industry is cyclical and experiences large percentage swings when compared month on month. Although both demand at home and overseas has seen double-digit growth, still almost two thirds of British-built CVs are destined for export, the majority to the EU. This signifies just how vital a deal that retains free and frictionless trade with the EU is for this sector.

Notes to editors

  1. 9,655 CVs were produced in February 2012

Source: SMMT

 

Overseas demand drives UK CV manufacturing in April

DICV-1

 

  • UK commercial vehicle manufacturing up a fifth in April, with more than 7,000 units produced.
  • Exports demand continues to drive output, up 28.5% to take 70.9% production share.
  • Year-to-date production remains down, with 26,551 CVs produced so far this year.

UK commercial vehicle (CV) manufacturing increased by almost a fifth (19.0%) in April 2018, according to figures published today by the Society of Motor Manufactures and Traders (SMMT). 7,299 CVs were built in Britain last month as a rise in overseas demand boosted production.

Production for export in the month increased by 28.5%, with more than seven in 10 CVs destined for international markets. Meanwhile, demand from domestic fleets remained stable, up 0.9%, with 2,124 vans, trucks and buses produced for UK customers.

Year-to-date production figures remain down, falling -10.2% on 2017, with manufacturing for both domestic and overseas markets declining -21.1% and -4.3% respectively. However, in line with the monthly figures, exports continue to account for the lion’s share of production, at 68.8%.

Mike Hawes, SMMT Chief Executive, said,

While it is positive to see an increase in CV production, given the fluctuating nature of fleet buying cycles, caution is advised when making month-by-month comparisons. However, today’s figures highlight just how dependent the industry is on production for export, particularly to the EU – our largest customer. If we are to see future long-term growth, government must negotiate the right Brexit deal to ensure our mutual trade remains free and free flowing.

Soure: SMMT

Unhelpful talk of a crash in new car registrations belies the facts

Unhelpful talk of a crash in new car registrations belies the facts. New car registrations were indeed down in March by -15.7%. Two issues are relevant, however. First, March 2017 was a bumper month, the biggest ever in fact, as many consumers pulled forward purchases ahead of changes to Vehicle Excise Duty in April. Secondly, we must remember that this March is still the fourth best in a decade and the market is still at historically high levels with well over 700,000 motorists driving home a new car so far this year.

Nonetheless, there is cause for concern given the market for new cars is down across the board. Private, business and fleet were all negative and, in the CV sector a drop of -5.6% is indicative of declining business and consumer confidence. Furthermore, the continuing drop in demand for diesel cars and disappointing demand for alternatively fuelled vehicles is further evidence of the need for clearer government policy, incentives and advice that encourages consumers to buy the right car for their driving needs irrespective of fuel type. Consumers and businesses also need the right economic conditions to have the confidence to buy new vehicles and it is important to remember that a thriving new car market is essential to the overall health of our economy.

We were pleased to see the merits of Vauxhall’s Luton plant recognised this week, with the announcement that the latest Vivaro van will be built in Britain. The decision helps to secure around 1,400 jobs and in time could see Peugeot and Citroën branded vans made in the UK. The UK remains a centre of excellence for vehicle production – with one of the most productive workforces in Europe – an essential component of our current competitiveness, along with our frictionless trade with Europe. We will continue working closely with government to deliver an industrial strategy and sector deal for automotive, one which builds on our long heritage in vehicle manufacturing.

Finally, you will have noticed that Update has changed slightly this week – we hope you like the new format and style and it continues to be on your essential reading list every Friday.

Source: Mike Hawes, SMMT, Chief Executive

2017 UK car manufacturing declines by -3% but still second biggest output since turn of the century

  • 1.67m cars built in the UK in 2017, a decline of -3.0% with production for domestic demand down -9.8%.
  • Car exports remain at historically high level, down just -1.1% with 1.34m shipped worldwide – 79.9% of total production.
  • British engine manufacturing at record-ever levels, with 2.72m produced, up 6.9% on 2016.
  • SMMT restates need for urgent clarity on Brexit transition, as new calculations show over 10% of exports could be at risk on 30 March 2019 unless we secure all current trading arrangements.

UK car production declined in 2017, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). 1,671,166 vehicles rolled off production lines last year, a -3.0% decrease on 2016 and the first decline for eight years – but still the second highest output in 17 years.1

A -9.8% fall in output for the domestic market drove the overall decline, as the market responded to declining business and economic confidence and confusion over government’s policy on diesel. Exports also fell, though at a much lower rate, by -1.1%. Overseas demand continued to dominate production, accounting for 79.9% of all UK car output – the highest proportion for five years.2 The EU remained the UK’s biggest trading partner, taking more than half (53.9%) of exports, while the appetite for British-built cars rose in several key markets, notably Japan (+25.4%), China (+19.7%), Canada (+19.5%) and the US, where demand increased 7.0%.

Nevertheless, the latest figures is approximately 130,000 units below the mid-year forecast, given lower than expected demand primarily in the domestic market. This significant decline in production underscores the importance of government and industry working together to ensure the right conditions for the sector. The Industrial Strategy and, in particular, a Sector Deal for automotive are important but must be supported across government ensuring all policies align to the goal of a vibrant and growing industry.

The UK’s growing reputation as a centre for excellence in powertrain design and manufacturing, meanwhile, helped drive engine production to record levels. Demand for UK-built engines grew at home and overseas, with overall output up 6.9% to more than 2.7 million – with 54.7% destined for car and van plants around the world, the majority in the EU. The growth is the result of significant investment in plants now producing high tech, low emission petrol and diesel engines. Last year, more than 1 million diesel and 1.7 million petrol units were built in Britain, delivering £8.5 billion to the economy.3 These latest figures highlight the importance of diesel and petrol engine manufacturing in the UK – with some 8,000 people employed in engine production and 3,350 directly employed in diesel engine production.4

The news comes as UK Automotive restates the need for an urgent agreement on the terms of a post-Brexit transition deal. This must be comprehensive, result in no change and allow business to continue as usual until a new trading relationship with the EU is in place. This means maintaining the UK’s membership of the single market and customs union and addressing critical details that, if ignored, could have a damaging effect on the industry’s competitiveness.

The agreement must include guarantees that the UK will continue to benefit from EU Free Trade Agreements (FTAs) and Customs Union arrangements with third countries, for the full duration of transition. Latest SMMT calculations show more than 10% of UK car exports go to countries with which the EU has advantageous trading arrangements including South Korea, Canada, Turkey and, soon, Japan.5 Secondly, vehicle certifications that have been issued in the UK must remain valid at home and abroad so that vehicles can continue to be sold across the EU. Finally, no new customs checks, which would add cost, cause delays and disrupt manufacturing, should be applied during the transition.

Mike Hawes, SMMT Chief Executive, said,

The UK automotive industry continues to produce cars that are in strong demand across the world and it’s encouraging to see growth in many markets. However, we urgently need clarity on the transitional arrangements for Brexit, arrangements which must retain all the current benefits else around 10% of our exports could be threatened overnight.

We compete in a global race to produce the best cars and must continue to attract investment to remain competitive. Whilst such investment is often cyclical, the evidence is that it is now stalling so we need rapid progress on trade discussions to safeguard jobs and stimulate future growth.

Hawes spoke as SMMT also released new figures showing that UK automotive investment fell by 33.7% in 2017. Some £1.1 billion of investment earmarked for vehicle and supply chain manufacturing was publicly announced last year, down from £1.66 billion in 2016.

  1. Annual car production last declined in 2009. Total output was higher in 2016, and prior to that, in 1999
  2. In 2012, exports as a proportion of production was 82.7%
  3. SMMT calculations
  4. SMMT data
  5. Taking into consideration EU-wide trade deals in force and yet-to-be-ratified agreements, the UK automotive industry benefits from bilateral trade pacts between the EU and several of the sector’s top 10 export markets, including Turkey, Japan, Canada, South Korea and EFTA countries (Switzerland, Norway, Iceland and Lichenstein). Taken together, these countries cover more than 10% of UK automotive exports.

Source: SMMT

 

UK new car market reports slower August as more buyers await new 67-plate

car manufacturing


  • New car registrations fall -6.4% in August to 76,433.
  • AFV demand surges 58.3% as more motorists switch on to alternative powertrains.
  • Year-to-date market holds steady, down -2.4%, with 1.64 million cars joining British roads in 2017.

SEE CAR REGISTRATIONS BY BRAND

The UK new car market reported its fifth consecutive month of decline in August, according to figures published today by SMMT. Registrations fell -6.4%, after a record August in 2016.

However, with more than 76,000 new cars registered, the performance still represents the third biggest August in 10 years.1 Year to date, the market remained broadly in line with expectations, down -2.4%, with 1,640,241 new cars joining British roads in the first eight months.

Superminis and small family cars remained the most popular types in August, accounting for more than half (58.3%) of registrations. However, SUVs, larger family cars and executives were the only segments to grow, up 7.9%, 2.2% and 1.1% respectively.

Meanwhile, more people chose to get behind the wheel of an alternatively fuelled vehicle (AFV) than ever before in the month, accounting for a 5.2% share of the market.2 Demand for petrol hybrid and pure electric battery powered cars increased substantially, up 74.9% and 62.5%, while plug-in hybrid registrations rose 38.5%. Conventional petrols grew 3.8% and diesels fell -21.3%.

Mike Hawes, SMMT Chief Executive, said,

August is typically a quiet month for the new car market as consumers and businesses delay purchases until the arrival of the new number plate in September. With the new 67-plate now available and a range of new models in showrooms, we anticipate the continuation of what are historically high levels of demand.

Notes

  1. August 2016: 81,640; August 2015: 79,060; August 2007: 77,649
  2. The previous AFV record market share for August was 3.1% in 2016

Source: SMMT

 

British car manufacturing rebounds in July as new models hit production lines

  • UK car output rises 7.8% in July as manufacturers ramp up production with new models.
  • After seven months of decline in the domestic market, production increases 17.7% ahead of number plate change in September.
  • Year-to-date performance remains strong, with production passing the one million mark and in line with expectations.

British car manufacturing rose 7.8% in July, with 136,397 new units rolling off UK production lines, according to figures released today by SMMT. Major carmakers ramped up production for new and existing models in the month ahead of summer factory shutdowns, which provide an essential period for plant maintenance, upgrades and re-tooling.

Production for the UK bounced back in July, in readiness for the important September market, following seven successive months of decline, rising 17.7% – an increase of 4,490 units – while exports also grew by 5.3%. Cars made for overseas buyers represented nearly 80% of output in the month with 106,525 units shipped abroad, compared with 29,872 which stayed at home.

Year-to-date new car production remains solid and has now passed the one million mark, though showing a slight dip of -1.6% compared with 2016, in line with expectations. Since January, overseas customers have taken delivery of 78.8% of new cars made in Britain, with UK manufacturers now exporting cars to more than 160 different countries around the world.

Mike Hawes, SMMT Chief Executive, said,

UK car production lines stepped up a gear in July, as usual bringing forward some production to help manage demand ahead of September and routine summer factory shutdowns. As the timing and length of these manufacturing pauses can shift each year, market performance comparisons for July and August should always be treated with caution, but as long as the economic conditions at home and abroad stay broadly stable we expect new car production to remain in line with expectations for the rest of 2017.

Source; SMMT

SMMT Brexit Update

 

SMMT_Master_Brandline_(RGB)

The latest round of negotiations over the terms of Britain’s departure from the EU began in earnest this week. Europe’s leaders have been clear that sufficient headway must be made on exit terms before talks on future trade can begin, so UK business will hope for swift and sure progress.

To that end, it is pleasing to see both the Prime Minister and the Chancellor meeting with industry groups this week. Commentators are beginning to see business as increasingly influential in any future agreement – as well they should. Business operations are often determined by EU rules and many firms are also well versed in the minutiae of trading within the EU and without.

Yesterday Theresa May’s new business advisory group met for the first time to discuss concerns around the UK’s withdrawal. Meanwhile, Phillip Hammond, speaking to the CBI on Monday, noted that Brexit is just one in a series of issues facing Europe and the Eurozone and called on businesses to stress the need for agreement on key issues to their continental colleagues and partners.

The truth is that those operating within global and European supply chains see the necessity of a deal most clearly. Therein much of the trouble could lie – the flow of goods across Britain and Europe will need to be maintained while clarity over regulation and continued participation in existing EU trade deals with key international markets must be assured. Yet more reason automotive must be considered a priority sector throughout the Brexit process.

SMMT continues to reiterate its priorities for Brexit and to advise government on the complex rules and regulations with which the motor industry must comply. More information on the industry position is available on our website at www.smmt.co.uk/brexit.

Britain’s trade with Europe will not cease. It’s competitveness, however, will be threatened. UK companies’ expertise and quality products will continue to attract global customers but the cost of those products and services is harder to forecast.

Soure: Mike Hawes, SMMT Chief Executive

Carmakers call for transitional EU deal

car-manufacturing

 

The government must secure a transitional Brexit deal to protect the future of the UK car industry, a trade group has said.

The Society of Motor Manufacturers and Traders (SMMT) said Britain was highly unlikely to reach a final agreement with the EU by the March 2019 deadline.

That meant carmakers could face a “cliff edge”, whereby tariff-free trade was sharply pulled away.

It warned the industry would suffer without a back-up plan in place.

The EU is by far the UK’s biggest automotive export market, buying more than half of its finished vehicles – four times as many as the next biggest market.

UK car plants also depend heavily on the free movement of components to and from the continent.

The SMMT said any new relationship with the EU would need to address tariff and non-tariff barriers, regulatory and labour issues, “all of which will take time to negotiate”.

“We accept that we are leaving the European Union,” said chief executive Mike Hawes.

“But our biggest fear is that, in two years’ time, we fall off a cliff edge – no deal, outside the single market and customs union and trading on inferior World Trade Organization terms.

“This would undermine our competitiveness and our ability to attract the investment that is critical to future growth.”

He called on the government to seek an interim arrangement, whereby the UK stayed in the single market and customs union until a new relationship was brokered.

UK car manufacturing generated £77.5bn of turnover last year and accounted for 12% of all goods exports, according to the trade group.

It added that almost a million people were employed across the wider automotive industry.

Source: BBC News

UK car manufacturing falls in April, but YTD output remains strongest for 17 years

car-manufacturing


  • Car output falls 18.2% as Easter bank holiday results in fewer manufacturing days.
  • Year-to-date production rises 1.0% to almost 600,000 units – the highest level since 2000.
  • SMMT calls for the newly elected government to prioritise UK Automotive needs to secure future growth.

UK car manufacturing fell in April, according to figures released by SMMT. 122,116 cars were made in the month, a 18.2% decrease on April 2016, as the late Easter bank holiday affected production.

Despite the decline, year-to-date production remains strong with 593,796 cars made so far in 2017 – a 1.0% increase on the same period last year – reaching its highest level for the first four months of the year since 2000.

Demand from overseas buyers continues to drive growth, up 3.5% so far this year and offsetting a fall at home of 7.0%. In total 76.8% of all cars made in the UK since January have been shipped abroad, with the majority going into the EU.

The news comes as SMMT publishes its priorities for the next government following the general election in June. UK Automotive Priorities, Securing the Strength of the UK Automotive Industry 2017 – 2022 sets out what is required to ensure the ongoing success of a crucial sector that supports 814,000 jobs nationwide, one that has a turnover of £71.6 billion every year.

Mike Hawes, SMMT Chief Executive, said,

“Car production fell significantly in April due to the later Easter bank holiday weekend which reduced the number of active production days that month and also due to unplanned production adjustments. Overall, British car manufacturing remains in good health with the production outlook still very positive and significant new models due to go into UK production shortly. To guarantee future growth and investment into our industry and its vital supply chain, however, we need the next government to safeguard the conditions that have made us globally competitive, keeping us open and trading and delivering an ambitious industrial strategy for our sector.”

UK Automotive Priorities 2017- 2022

  1. A globally competitive business environment to support investment, growth and job creation.
  2. A new trading relationship with the EU which safeguards the interests of UK Automotive.
  3. An ambitious industrial strategy delivering for automotive as a strategic sector.
  4. A holistic strategy to support sustainable mobility and ULEV uptake.
  5. Effective policies to ensure the UK secures the benefits of digitalisation.

Download UK Automotive Priorities, Securing the Strength of the UK Automotive Industry 2017 – 2022 here.

Source: SMMT