Over-regulation threatens to cloud a bright future for companies in the automotive sector and could see more production moving east. That’s the central theme in Automotive Manufacturing 2006 – the industry perspective, SMMT’s fourth issues survey which pooled the views of more than 100 senior executives.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


The latest warning from the UK industry, follows publication of last year’s ‘CARS21’ (Competitive Automotive Regulatory System for the 21st Century) report in Europe. This pointed to the effect that inconsistent and conflicting regulatory objectives were having on European competitiveness.


Recommendations were made to streamline rules and limit the cost burden to the auto industry. The SMMT says it fully endorsed these recommendations, and urges the UK government to follow these principles.


“Automotive manufacturing is alive and well and has a bright future,” said SMMT president Roger Putnam.


“Productivity has improved, the skills gap is narrowing and business prospects are promising. However, the spectre of over-regulation looms threateningly. Government must heed our concerns and avoid the temptation to regulate Britain’s largest manufacturing sector out of existence.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Among  the findings from the SMMT survey:



  • Eight out of 10 companies are optimistic about medium term growth;
  • Nearly half warn of imperative to move production to low-cost markets;
  • Fewer companies report problems recruiting skilled employees, but Level 3 skills remain most elusive;
  • Nine out of 10 companies say costs will increase significantly in the next five years, through regulatory overload;
  • 93% believe government is not as committed as it should be to Britain’s largest manufacturing sector.

Published at SMMT’s Annual Dinner, results were based on views from companies across automotive manufacturing. Respondents represented vehicle manufacturers, component suppliers and companies operating in the aftermarket.


Automotive Manufacturing 2006 – the Industry Perspective is now available to download free of charge from www.smmt.co.uk.