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SHOP TALK
Page 103
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• While we are particularly concerned with the components and service side of the industry serving road haulage, the health of the whole automotive industry is of tremendous importance to our readers and the country as a whole.
So we must look at the whole picture when preparing for the Single European Market, really starting in 1993, as Valeo chairman Noel Goutard told the Financial Times Motor Conference (see page 5).
Facts from Monsieur Goutard: • Europe has the largest automotive market, with revenues of ,£50 billion, and despite some "consolidation" includes 1,500 equipment makers.
Opinions from M. Goutard: • The European automobile market will grow slowly until the year 2000 at a probable rate of 1% to 2% annually. The growth of the components market will be stronger: 5% to 6% a year.
"Automotive equipment is a strong growth industry. I know this view goes against the general opinion, but I believe the expansion of the last four years will hold for a long time," he said. The major political issue "for the new generations"? Pollution control — spurring innovation and providing new opportunities for the components makers.
Large multinational component suppliers will thrive in the European market. Required capital investments in research and development are huge. "This leaves little room for the smaller players."
But, and he did not go into this, different components need vastly different sums for research. Some, not too much.
However, as the BBA Group's John White pointed out, Britain is now a good base for components production.
Our report concentrates on what was said about components, but Professor Garel Rhys, who lectures on motor industry economics at the University of Wales, was there to remind us that the commercial vehicle manufacturing industry has largely fallen under foreign ownership.
Nevertheless, he finds that the longer-term demand prospects in the UK are good and that it's possible the UK is experiencing an "economic miracle". You can't get a lot more positive than that, as soccer managers would say. And he adds the short and mediumterm prospects for commercial vehicles and cars appear good.
• Back at the ranch, Institute of Motor Industry branches in the Midlands held a seminar including discussion on beating the "grease monkey" image by involving careers teachers. One delegate said that his garage was visited by a school party, and he heard the teacher say: "If you don't pay attention and get some 0levels, this is where you could end up."
We bet the manager was over the moon. Editor: John Durant 01-661 3254 Workshop writer: Peter Watt 01-661 3679 Advertisement manager: Gary Cunningham Advertisement sales executive: Ian Lea Publishing director: Gavin Howe 01-661 Workshop is published monthly as a supplement Business Publishing Ltd, Quadrant House, (Telephone: 01-661 3500), typeset by Paulset and printed by Pulman Web Offset, Bletchley, Reed Business Publishing Ltd, 1989. Facsimile Reed BPG.
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