ABSTRACT

This chapter considers the global size of the car industry and the significance of the United Kingdom (UK) industry within it and what exactly is at risk in that sector. It argues that a greater sense of proportion is needed in the consideration of the significance of the car industry in the UK. The magnitude of the global vehicle industry is astounding. The increase in China represents two-thirds of all vehicle production growth since the turn of the century, and China’s increase in production has been larger than new size of any other region. The International Organization of Motor Vehicle Manufacturers estimates that it takes direct labour of more than eight people per vehicle produced, and five times that many in indirect labour for distribution and service provision. As production grew, the value of motor vehicles as a portion of manufacturing output increased the general downward trend of manufacturing in the overall economy continued.