Domestic Suppliers Gain Favor With U.K. Automakers

LONDON – U.K. automakers increasingly are using home-market products to build their vehicles.

A report by the Automotive Council, a joint government and industry body, shows 44% of all components used by U.K. car manufacturers come from domestic suppliers, compared with 41% in 2015 when the study last was conducted.

The council’s report, “Growing the Automotive Supply Chain – Local Vehicle Content Analysis,” notes in 2011 local-vehicle content stood at just 36%, which itself was an improvement following years of decline in U.K. automotive manufacturing.

British car production hit a 17-year high in 2016 with more than 1.7 million vehicles built and, since 2009 when the Automotive Council was formed, production has risen more than 72%. In pure financial terms, with regard to output of the U.K. automotive-parts sector, sales have increased from £9 billion ($11.5 billion) at the start of 2011 to £12.7 billion ($16.2 billion) today – a 41% improvement.

“The domestic supply chain is the backbone of U.K. Automotive and its health is crucial to the success of the whole sector,” says Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders. “While it is good news that British cars are becoming more British and re-shoring efforts are enjoying success, the process takes considerable time.

“To grow our supply chain further, the long-term competitiveness of the U.K. must be maintained. Collaboration with government has been an undoubted factor in the recent success, and we hope to continue this approach to ensure the economic and trading conditions we currently enjoy are maintained.”