Prof David Bailey at Birmingham Business School asked the query on LinkedIn as as to if the announcement that the Chinese automobile manufacturer Chery producing cars at Nissan’s Sunderland plant could possibly be some of the significant developments within the UK automobile industry within the last 10 years.
Much of the initial response has focused on the connection between Nissan and Chery, but those issues are missing the larger picture, writes Professor Jim Saker, president of the Institute of the Motor Industry.
That is arguably the moment China’s automotive industry stops simply exporting vehicles to Britain and starts manufacturing them here.
As everyone knows, twenty years ago Chinese carmakers were largely unknown in Europe, struggling to achieve credibility in established markets dominated by manufacturers from Japan, Germany, america and the UK.
Today, China is the world’s largest vehicle producer, home to among the fastest-growing automotive brands and a worldwide leader in electric vehicle technology.
Chery may represent historic moment
If Chery vehicles are produced in Sunderland in meaningful volumes, it might represent a historic milestone: potentially making Chery the primary major Chinese manufacturer to construct passenger cars within the UK on a big scale.
It has not been made public as as to if it is a kit automobile operation to circumnavigate tariff charges or whether that is a standard assembly operation.
Whatever form it takes it makes the event particularly noteworthy because it is a reversal of traditional industry assumptions. The true story is just not Nissan helping Chery gain access to the British market.
As an alternative, it’s Chery helping to maintain one in all Britain’s most significant automotive manufacturing facilities fully utilised.
Partnerships will prove critical
In an era of intense global competition, factory utilisation matters. Automotive plants require high production volumes to stay efficient and competitive. Partnerships that help secure future workloads can play a critical role in protecting long-term manufacturing operations.
For employees in Sunderland, and indeed across the broader UK automotive supply chain, the nationality of the badge on the bonnet could also be less vital than the continued viability of the factory itself.
Manufacturing jobs, supplier contracts and future investment remain the priorities.
China’s lively investment within the UK
There’s also a vital psychological shift going down. Once Chinese brands establish manufacturing operations in Britain, they start to maneuver from being perceived as foreign challengers to becoming domestic manufacturers. They shift from being pariahs who’re exploiting the UK, to organisations who’re actively investing in Britain.
The symbolism is striking. When Nissan established Sunderland within the Nineteen Eighties followed by Toyota and Honda it represented the globalisation of Japanese automobile manufacturing and transformed perceptions of Britain’s industrial future.
4 a long time later, the identical site could turn out to be a launchpad for China’s automotive expansion into Europe. It’s going to be interesting to see how keen other Chinese brands can be in investing within the UK versus simply shipping cars into our market.
Writer: Professor Jim Saker, president, Institute of the Motor Industry
Ensure you mostly receive AM insights. Make us a preferred source of stories on Google
This Article First Appeared At www.am-online.com
