5 FUTURE OF THE UK CAR MANUFACTURING
INDUSTRY
85. The SMMT summed up the problem neatly:
"The long-term challenge for the industry
in the UK (within the global market) will be to focus on high
added-value processes and products and to utilise the UK's significant
strength in automotive design and innovation and its skilled and
flexible labour force. Competition on the basis of low cost, semi-skilled
workers and low value-added processes will be increasingly challenged
and become non-viable
"[191]
Like our predecessors we see mixed prospects for
companies manufacturing passenger cars in this country, and for
individual plants. There were particular reasons why Longbridge
and Ryton closed and for the loss of the third shift at Ellesmere
Port. However, though the combination of problems experienced
by these plants may have been especially acute, we heard nothing
to make us believe that they were unique to these plants or their
parent companies. It is therefore all the more important that
both the industry and Government put extra effort into improving
skill sets throughout the sector, increasing the commitment to
R&D, adopting lean manufacturing techniques and strengthening
the local supply chain.
191 Appendix 18, para 2.43 Back
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