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Introduction to globalisation via the UK car market
20th January 2012
For those of us eagerly awaiting the release of the Case Study for OCR GCSE Economics Unit 593, the topic of globalisation provides a nice stepping stone to the more challenging material. Data out this week from the Society of Motor Manufacturers and Traders gives an insight into the motor industry and shows an increase of 5.8% in production by Britain’s car assembly plants.
83.7% of the 1.34 million cars produced in the UK are exported, accounting for 10% of UK exports (total “automotive” exports as percentage of total exports). In an article for The Times (20/1/12), Tony Burke, assistant general secretary, Unite, is quoted as saying “These car production figures are a glimmer of hope in gloomy times. British manufacturing can be a success”.
In order the British production data:
Nissan 480,485 (+13.5%)
Jaguar Land Rover 288,169 (+22.5%)
BMW (including Mini & Rolls Royce) 195,952 (-11%)
Vauxhall (including Vivaro van & some Renault/Nissan vans) 194, 952 (+34.5%)
Toyota 128,126 (-6.5%)
Honda 97,459 (-30%)
Ford 28,170 (-0.5%)
Leyland trucks 14,568 (+57%)
Bentley 7,350 (+37%)
I often find students struggle to name output that can be exported from Britain so this data should prove a useful introduction. This Telegraph article comes packed with facts and pictures to kick off an introduction and this article provides some of the data that you may not be able to access from The Times.
International car market
This year the Detroit motor show looked to the US market as uncertainty about European demand continued.
If you want to liven up the introduction then Chrysler’s 2011 Superbowl advert featuring Eminem is perfect to get to the ethos that is Detroit.
Latest: the story of export led growth continues in February 2012 as production rises by 23.5%, jobs are created and JLR move to 24 hour production to meet demand. This article provides more information on this update.