2012 proved to be a hugely successful year for the UK car manufacturing industry, with more new car registrations and a higher export volume that has been seen in some time. Brands such as Vauxhall, Jaguar Land Rover and Honda have all chosen to invest in their factory lines in this country this year, creating thousands of jobs and ensuring that the long term future for skilled workers in the manufacturing field will prove to be both profitable and secure.
This year, the sector is expected to grow even more with further investment from international companies. Jaguar Land Rover are rumoured to be adding several models and expanding ranges in order to appeal to the luxury car market – meaning yet more jobs and opportunities for skilled workers here in the UK.
Nissan also delivered an early Christmas present to the manufacturing industry when they announced a £250 million investment into their Sunderland commercial property. This is expected to create hundreds of jobs throughout 2013, with further expansion a possibility over the next few years.
The investment will go towards the production of a new small luxury car created by Nissan’s design team in London. In terms of output, the investment will also allow Sunderland to become the first UK plant to manufacture 500,000 vehicles annually.
Over the course of this year and 2014, the investment will be channelled into the Sunderland plant in order to cover the cost of a new, smaller Infiniti model. Due to high fuel prices and on-going financial woes in the Eurozone, Nissan believes that scaling down the size of their current Infiniti range will ensure that European drivers can still afford a luxury vehicle without being put off by high running costs.
Traditionally, the Infiniti range has been produced and exported from Japan, yet due to the strong Yen Nissan claims that it will be more profitable to produce and sell the European friendly model in the UK.
The Sunderland factory was chosen in large part due to the strong reputation it has for quality and reliability, says Nissan’s chief performance officer and executive vice president Colin Dodge. He himself was employed there between 1984 and 2007, before moving to Japan to take up his current role at Nissan headquarters.
Mr Dodge says; “This milestone, our first premium product to be manufactured at Sunderland, reconfirms our commitment to UK manufacturing and the on-going success of the plant which is moving up the value chain.
“Just as important, the new Infiniti, which will be exported around the world, is being developed with help from our London design centre and our European Technical Centre.”
Of course, this is not only good news for Nissan – the Government and the UK at large will both benefit from the substantial cash injection and subsequent raise in profile for the car manufacturing sector. On top of this, the new Infinity is expected to create several hundred jobs.
Mr Dodge claims that it is too early to specify exactly how many jobs will be created, yet initial estimates place 280 additional workers at the factory itself while a further 700 or more will gain employment with Nissan’s UK suppliers. Nissan already employs 6000 people at its Sunderland factory.
Business secretary, Vince Cable visited the Sunderland commercial property for the investment announcement on the 19th December of last year.
He expressed his joy for this further boost to the UK manufacturing sector, saying; “Nissan in the UK goes from strength to strength – not only will the new car be made here and exported all over the world, the UK has already contributed to its design and development.
“Today’s news is a strong endorsement of the quality of Britain’s car industry which is creating jobs, taking on apprentices and contributing to building a stronger economy.
“The auto sector is living up to being one of the great success stories of our industrial strategy and a testimony to government and private sector working together in close partnership.”
Do you think that this latest cash injection by Nissan will encourage yet more companies to base their manufacturing commercial properties in the UK, or is the fear of overcrowding now becoming a deterrent? Will 2013 prove to be even more successful for car manufacturing in the UK than 2012 was, or do you think limited resources and a lack of skilled workers means the sector has already peaked?
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