The UK’s automotive manufacturing industry is thriving but to ensure we remain globally competitive, having a highly skilled and adaptable workforce is critical. Moreover, the special requirements of automotive mass production have had a big influence on the design and development of highly specialized machine tools and have encouraged technological advances in petroleum refining, steel making, paint and plate-glass manufacturing, and other industrial processes.
The most likely avenues for value improvements include forecasting growth markets adeptly and seizing a greater share in those regions; investing in new technologies and features that attract customers and word of mouth (rather than commoditized components, such as yet another dashboard redesign); developing a rightsized and efficient factory footprint; cementing healthy collaborative relationships with suppliers; and creating a strong distribution base with a premium on customer service.
If this route is not the right one for your business, prepare an approach for partnering with companies from outside the traditional automotive sphere, which should include advantageous arrangements involving licensing, revenue sharing, and ownership of intellectual capital.
These measures effectively rendered the Auto Pact requirements meaningless (the Auto Pact itself was eventually deemed illegal by the World Trade Organization in 1999 because it discriminated against the newer entrants into the Canadian industry, namely Toyota and Honda), and the entry of Mexico fully into the North American industry created a new continental competitor for auto investment dollars.
Chang’an Automobile Group has three joint ventures, one with PSA Peugeot Citroen ( CAPSA ), both hold a 50-50% stake, one with Suzuki ( Changan Suzuki ), both hold a 50-50% stake, and one with Ford and Mazda ( Changan Ford Mazda ), CAG holds a 50% stake, Ford holds a 35% stake, and Mazda holds a 15% stake.