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The UK Automotive Industry and the EU Focus on Automotive Global Automotive Executive Survey 2014 Pricing: The Automotive response
The UK Automotive Industry and the EU
UK must maintain a strong voice in Europe says automotive industry
Focus on Automotive
Our multi-media magazine for Business Leaders
Global Automotive Executive Survey 2014
Strategies for a fast-evolving market
The Automotive response


European new vehicle sales have finally bottomed-out after six consecutive years of falling sales. Most mass-market manufacturers are suffering losses in their European businesses and are implementing a number of loss-minimisation strategies. Most importantly, the trend towards more models from fewer but more flexible platforms is gathering momentum.

We expect to see substantial supply chain consolidation as car manufacturers aim to reduce their tier 1 suppliers by a third during the next product cycle. However, this strategy is increasing risk for car manufacturers; supply chain disruption and quality issues are making a greater impact when they happen.


Meanwhile emerging market demand for vehicles continues to soar. European luxury car manufacturers that export to emerging markets from local factories are enjoying record sales and profitability. The main challenges facing luxury car manufacturers are building production capacity in emerging markets and developing their global networks. Hence all vehicle manufacturers and their suppliers need to continue to expand their business internationally or risk being marginalised.


Vehicle manufacturers are dealing with these substantial shifts in demand while investing heavily in R&D with electric cars and connected car services. Internal combustion engine improvements should see it dominate for several decades yet, but electric and fuel-cell vehicles represent the future with many examples already on the road. In-vehicle connectivity is opening new revenue streams for vehicle and smart-phone manufacturers with infotainment, motor finance, insurance and repair industries all about to be radically transformed.


In the UK, the retail and aftermarket continue to perform better, although new marketing channels such as internet sales and pop-up showrooms are gaining ground.


Our automotive team is experienced in dealing with all these issues in a holistic way that considers all the angles. We advise on commercial strategy, redesign business processes and implementation. Our experts advise on raising debt and equity finance, mergers and acquisitions (M&A), Tax, IT, Operational Transformation, Supply Chain, Procurement and Sales. We have taken the time to grow our services and work with the largest and smallest automotive companies to improve financial performance and reduce risk. .

Trends in the Automotive Sector

Trends in the Automotive Sector video


John Leech, Head of Automotive provides an overview of the UK automotive industry.



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John Leech

John Leech


KPMG in the UK

012 1232 2035