Essays on Impact of Globalisation on the UK Car Manufacturing Sector Case Study

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The paper "Impact of Globalisation on the UK Car Manufacturing Sector" is a perfect example of a business case study.   For the past few decades, the UK car manufacturing sector has undergone a complete transformation. The UK government and the automobile industry committed a long-term engagement in 2009 with the immediate formation of the Automotive Council. The manufacturing sector is the 3rd biggest contributor to the total GDP with an average contribution of 11 percent revenue. Out of the 11%, the car production industry accounts for 2/3 with a yearly turnover of about ₤60 billion.

Possibly, the UK car manufacturing sector has been influenced by changes in the global automobile industry as a result of globalization. There has been improved transport infrastructure, expansion in information and communication technology and considerable advancement in the abolition of tariff and non-tariff barriers. Introduction The UK automotive industry has undergone significant changes over the last few decades. According to the report prepared by Monaghan and published in the Guardian Magazine (2014, n. p), over 1.13 million cars were manufactured in all the UK’ s industrial production lines in 2014. The SMMT, however, confirmed that 1.13 million cars, approximately 0.6% more than a year earlier, was the highest performance since 2008.

In September 2014, the productivity in the auto industry fell by 2.8% compared to the previous year, which comes to 137,068 cars. The decline in production affected the number of cars meant for export that were lower at 8.1% or 102,947. However, domestic demand for new cars rose to 17.7 percent, about 34, 121. SMMT alleged that the decline in car production as a result of planned re-tooling of the factories’ production lines to prepare for model adjustments. Findings The Current UK Car Industry; Jaguar and Land Rover: With the UK government aiming at rebalancing the economy, state regulations have led to a decline in company sales.

The car manufacturing sector only grew by 0.2% in the second quarter of 2014. The Tata Company uses aircraft technology in its operations. In 2009, the merger recorded extremely high sales that translated into bumper profits and implied an optimistic future for investors.

Reference

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Jain, P. (2014). Tata is well-positioned to gain from the growth of luxury vehicles in emerging economies. The Morningstar, [online] p.n.p. Available at: http://analysisreport.morningstar.com/stock/research?t=TTM®ion=USA&culture=en-US&productcode=MLE [Accessed 23 Mar. 2015].

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