UK Car Research Articles

FDI in the UK Car Component Industry: Recent Causes and Consequences

This paper examines the 1985–93 influx of foreign direct investment (FDI) into the UK automotive component industry from European and Japanese companies. The study of 27 investors found that the market and growth potential of the Japanese car transplants Honda (Swindon), Nissan (Sunderland) and Toyota (Burnaston) was by far the most important reason for their location decision overall, regardless of whether the firm was European or Japanese owned. The Single Market programme was not directly important to the component firms' location decisions overall, though indirectly it could have been influential in the decisions of the Japanese car assemblers to locate in the UK. Interviews revealed the effects that FDI was having on the UK industry in closing product gaps and on research and development. These results may have important policy implications for government agencies concerning the attraction of FDI, where it should be attracted, and the effects of such FDI.

Forget Japan: the very British response to lean production

Contrasts theories of the “Japanization” of British industry with empirical evidence from established car producers in that industry. Suggests that while the UK car industry has been heavily influenced by Japanese methods, established producers follow policies marked by indigenous influences rather than by any unmediated Japanese effect. Proceeds to explore relationships between processual change in plant‐level work organization and the overarching context of institutions and ideas. Investigates the relevance of the two major theoretical models of workplace change in the motor industry ‐ the “diffusion” and the “bolt‐on” models of change ‐ and their conflicting interpretations of the impact of the Japanese “lean production” approach. Compares models with case‐studies of changing work practices at Rover and Peugeot and suggests that neither model provides a satisfactory account of the patterns of change found. Develops instead a model of change which emphasizes the creative adaptation of production practices within the British context.

British Steel proposes laser welded tailored blanks to UK car industry

British Steel proposes laser welded tailored blanks to UK car industry

Target pricing: a marketing management tool for pricing new cars

Over the past 15 years, many UK car manufacturers have learned that quality must be designed into cars before they are manufactured ‐ it is expensive, if not misguided, to create quality by inspection after the car has left the production line. Examines the rigorous cost management technique which helps prevent senior managers from launching low‐margin cars which do not generate enough returns on investment. Finds that most UK‐based car manufacturers employ the logic of target costing as a marketing management tool to determine the prices of new car models. Suggests that before a new car is launched, senior managers must determine its ideal selling price, establish the feasibility of meeting that price, and then control costs to ensure that the set price is met. Reports the conclusive evidence that when target costing works well, quantifiable hurdles are established in a transparent process, and senior managers are more likely to commit themselves to what the statistical numbers show.

Supply and stocking systems in the UK car market

There can be no doubt that distribution, in the widest sense of the word, is operating in a rapidly changing environment in the UK new car market. In particular, the supply and stocking systems for new vehicles have been subject to greater change since 1992 than at any time in the past and, it must be emphasized, this change is still ongoing. There has been very little academic research on distribution generally and some of the points drawn from this work in the automotive industry may have viability in other contexts with suitable localization. Summarizes the research carried out in the UK by the International Car Distribution Programme. Shows that some franchises have instituted revolutionary changes while others are more evolutionary. Some would seem to have carefully considered philosophies and strategies while others appear to have more of a “me‐too” approach. Many franchises have introduced central‐stocking systems as the first step in trying to make their supply systems leaner and they have achieved both an increase in customer matching (customers actually getting the exact specification of car that they wanted) and a decrease in stock and costs. Those already operating such systems are making them more sophisticated as time goes on. During the fieldwork for the research some systems had received major updates and others were due to occur in early 1995. There are many different approaches and in the research they have been classified into broadly similar types. The systems operated by some franchises are already pan‐European while others are confined to the UK with continental markets operating traditionally. In addition, wholly new approaches and systems are in the process of being introduced ‐ such as one specialist manufacturer who has introduced a “supply to order” policy. The improvements in distribution efficiency have the potential to provide savings typically of about £150 (but up to £360) per new car sold to the franchise as a whole. In addition there are unquantified benefits from the considerable improvements in customer satisfaction. Part of such savings can be realized by the dealer and part by the manufacturer. Some franchises had already realized large proportions of these savings and benefits before this research took place while others still have opportunities ahead of them and could yet achieve the sort of amounts suggested above.

That'll be the Daewoo

Spotlights South Korean car and vehicle manufacturer Daewoo (meaning ‘the whole universe’), the 30th largest industrial corporation in the world. Recounts that Daewoo announced, in May 1994, that it was to make a UK launch in early 1995, recruiting 75–100 dealers, but was warned of possible entrance difficulties in a mature but sophisticated market in recession. Shows how Daewoo overcame hurdles by breaking the mould and, six months after launch, Daewoo declared it the UK car market's most successful launch, with nearly 1% of the market. Includes a question and answer page with Dave Gerrans, customer operations director of Daewoo Cars Ltd.

Sleepiness and driving: the experience of UK car drivers.

A postal questionnaire survey aimed at exploring the relationship between accidents and daytime sleepiness was sent to 9000 male drivers of which 4621 (51.3%) responded (mean age 47.7, SD 17.1). Drivers provided details of the accidents they had experienced in the last 3 y, and identified those factors, including tiredness, they thought contributed to the accident. In addition, drivers completed the Epworth scale measuring daytime sleepiness and reported whether they had felt close to falling asleep whilst driving during the past 12 mo. Analysis of the data showed that 29% of drivers had felt close to falling asleep at the wheel in the last 12 mo, the probability of which depended on Epworth score, age, occupational group, annual mileage, the proportion of time spent driving on motorways and in built-up areas, how long the driver is prepared to drive before taking a break, and whether the driver is driving a company car or not. Overall, about 7% of accident 'involvements' were associated with tiredness (representing 9-10% of accidents)-a figure which is higher on motorways than on rural roads or built-up roads and higher still in the early hours of the morning. Accident rates of company car drivers and/or those who have felt close to falling asleep at the wheel in the last year are shown to be associated with daytime sleepiness. For example, a company car driver who has felt close to falling asleep at the wheel in the last 12 mo and who scores highly on the Epworth scale has an accident liability which is 70% higher than a similar driver who scores zero on the Epworth scale. Snoring every night increases accident liability by about 30%.

The revitalization of the UK automobile industry

1996 marks the centenary of car production in the UK. Once a by‐word for inefficiency, contends that the UK car industry has been revitalized. The political environment of the 1980s rendered the UK an attractive location for Japanese “transplants”. Explains how Japanese producers have transferred their highly competitive manufacturing processes and management techniques to their UK facilities, prompting other producers to emulate these practices. The UK automobile industry is world‐class once again.

Supplier relations in the UK car industry: good news—bad news

This paper reports on extensive field research conducted in the worldwide automobile industry, on the subject of developing close relationships between vehicle manufacturers and their component suppliers. A postal survey was conducted in Europe, Japan and the USA in 1993 and 1994, receiving detailed responses from over 1400 suppliers * . Using a simple definition for supply partnerships, the paper concludes that suppliers in some regions are observing improved collaborative attitudes on the part of their customers but that the expected benefits from such strategies have yet to be realised. Some reasons are suggested for this. This paper focuses especially on the UK industry, in comparison with other regions.

Restructuring the Global Automobile Industry: National and Regional Impacts

Chapter One: Motor Vehicle Manufacturing: The Representative Industry Chris Law Chapter Two: The World Automotive Industry Gerald Bloomfield Chapter Three: New Horizons: The Third World Motor Vehicle Industry in Transition Robert Gwyne Chapter 4: The Transformation of the Japanese Motor Vehicle Industry and its Role in the World: Industrial Restructuring and Technical Evolution Yasuo Miyakawa Chapter 5: The Impact of Japanese Investment in the USA James Rubenstein Chapter 6: Nothing New About Nissan? Philip Garrahan and Paul Stewart Chapter 7: Motor Components: Location Issues in an International Industry David Froggatt Chapter 8: Vertical Integration or Disintegration? The Case of the UK Car Parts Industry Ash Amin and Ian Smith Chapter 9: Restructuring Swedish Manufacturing Industry - The Case of the Motor Vehicle Industry Anders Malmberg Chapter 10: Subcontracting in the Motor Industry: a Case Study of Coventry Mike Rawlinson Chapter 11: Industrial Restructuring and the Labour Force: The Case of Austin Rover in Longbridge, Birmingham Dennis Smith Chapter 12: Policy Implications for the West Midlands in Trends and Changes in the Motor Vehicle and Component Industries David Elliot and Patrick Gray.

ENTRY AND INTRA‐INDUSTRY MOBILITY IN THE UK CAR MARKET

Oxford Bulletin of Economics and StatisticsVolume 53, Issue 4 p. 341-359 ENTRY AND INTRA-INDUSTRY MOBILITY IN THE UK CAR MARKET P. A. Geroski, P. A. GeroskiSearch for more papers by this authorA. Murfin, A. Murfin *We are obliged to Mike Waterson, Mick Keen, John Kay, Alex Bowen, John Cubbin, two referees and Steve Nickell, to participants at the ISF Conference in Boston, May 1987, the ESRC Econometrics Study Group Meeting, January 1988, and to seminar audiences at the London Business School and the KUL, Leuven, for comments on an earlier version of this paper. The usual disclaimer applies.Search for more papers by this author P. A. Geroski, P. A. GeroskiSearch for more papers by this authorA. Murfin, A. Murfin *We are obliged to Mike Waterson, Mick Keen, John Kay, Alex Bowen, John Cubbin, two referees and Steve Nickell, to participants at the ISF Conference in Boston, May 1987, the ESRC Econometrics Study Group Meeting, January 1988, and to seminar audiences at the London Business School and the KUL, Leuven, for comments on an earlier version of this paper. The usual disclaimer applies.Search for more papers by this author First published: November 1991 https://doi.org/10.1111/j.1468-0084.1991.mp53004001.xCitations: 3 AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume53, Issue4November 1991Pages 341-359 RelatedInformation

Entry and industry evolution: the UK car industry, 1958 - 83

Entry and industry evolution: the UK car industry, 1958 - 83

Entry and industry evolution: the UK car industry, 1958 - 83

Entry and industry evolution: the UK car industry, 1958 - 83

Entry and industry evolution: the UK car industry, 1958—83

This paper models entry and the subsequent changes in market structure in three segments of the UK car industry, 1958–83. The entry equation emerges from a dynamic optimization model which allows for the costs of acquiring market share. The model is used to explore the hypothesis that the market penetration of entrants in this industry was facilitated by a post-entry advertising war which the incumbent firms lost. The basic hypothesis under examination is that advertising both facilitates and restricts entry, but that it does so in a way that varies systematically over time. The data are consistent with this view, showing that high advertising shares readily translate into high market shares, but that the escalation of industry advertising caused by entry can make high advertising entry strategies increasingly costly over time.

Demand and Supply Constraints in the Inter-War UK Car Industry: Did the Manufacturers Get it Right?

(1991). Demand and Supply Constraints in the Inter-War UK Car Industry: Did the Manufacturers Get it Right? Business History: Vol. 33, No. 2, pp. 241-267.

International Investment and Production Collaboration Amongst Subcontractors: The Case of the UK Car Industry

International Investment and Production Collaboration Amongst Subcontractors: The Case of the UK Car Industry

Advertising and the Dynamics of Market Structure: The UK Car Industry, 1958–1983*

SUMMARYThis paper looks at the effect of advertising on market share dynamics, developing a model that describes the mechanism by which advertising affects consumer choice and illustrating it with reference to the UK car market. Advertising shares are observed to be highly positively correlated with market shares, suggesting that advertising has both pro‐ and anti‐competitive effects. Advertising facilitates entry in as far as entrants can acquire market share through advertising, but it inhibits entry when an escalation in total industry advertising makes this acquisition prohibitively costly.

Invest and Survive – the Impact of Information Technology on the UK Car Components Industry

Invest and Survive – the Impact of Information Technology on the UK Car Components Industry

Invest and Survive-the Impact of Information Technology on the UK Car Components Industry

Invest and Survive-the Impact of Information Technology on the UK Car Components Industry

Strategic Positioning in the UK Car Market

The relative position of products in the UK market is examined with the aid of multivariate statistical techniques. Two ways of plotting products to facilitate comparisons within and between manufacturing ranges are demonstrated. Pricing policies are examined and those manufacturers offering consistent discounts or consistently changing premiums are identified. The pricing policy model was used as a predictive tool to estimate the prices of a newly introduced range of cars. This approach can be used in any competitive market where the performance of products is numerically quantifiable.