United Kingdom

Details

  • Industry: Automotive
  • Type: Press release
  • Date: 20/02/2014

UK automotive jobs will grow in the tens of thousands by 2017, says KPMG 

John Leech, KPMG’s UK Head of Automotive, commented on the UK car production figures for January published today by the SMMT. He said:

 

“UK car production in January 2014 was flat but recent launches of cars made in Britain such as the Nissan Qashqai, BMW Mini and Range Rover Sport bode well for the UK industry. The SMMT forecasts that vehicle production will grow from 1.5 million in 2013 to over 2.0 million in 2017. 

 

“A key question vexing the industry and government is whether this will percolate down into jobs growth in Britain’s 2,000 supply chain companies.  In the 1990s and 2000s the UK automotive supply chain was ravaged and the proportion of parts sourced from UK suppliers dropped to as low as 35 percent.  Eighteen months ago, the Automotive Council highlighted that there was £3 billion of unfulfilled opportunity for UK suppliers, which has undoubtedly increased substantially since then. This has prompted recent investments from companies such as GKN, TRW, Lear, Borg Warner and Nifco raising optimism that the proportion of parts sourced from UK suppliers is likely to rise above 40 percent by 2017.  The increase in supply should translate into jobs growth measured in the tens of thousands by 2017.

 

John Leech concluded: “We are seeing a substantial upsurge of interest by potential investors in the UK automotive supply chain the like of which we haven’t seen for several decades.  Investors are principally overseas automotive suppliers but we are seeing interest from private equity and companies from closely-related sectors too. All in all, the outlook for the UK car industry looks bright.”

 

ENDS

 

Media enquiries:

 

Nahidur Rahman, KPMG Press Office

020 7694 8812 (t), 0788191 6975 (m) or nahidur.rahman@kpmg.co.uk

 

KPMG Press Office: 020 7694 8773

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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