INSTITUTE OF THE MOTOR INDUSTRY DECEMBER/JANUARY 2017 £5.50 WHO’S GOT THE POWER? PITTING A PLETHORA OF POWERTRAINS AGAINST EACH OTHER “CAR CRASH” AVOIDED? AN UPDATE ON APPRENTICESHIP FUNDING A VAN’S WORLD A GROWING REVENUE STREAM FOR BODYSHOPS Enter the DRAGON On China’s growing impact in the UK motor industry IMI ANNUAL DINNER 2017 Wednesday 8th March at InterContinental London, Park Lane Tickets £225+VAT (tables of 10 and 12 available) For booking details contact Cheryl Kennaird on 01992 511521 or email [email protected] www.theimi.org.uk/2017dinner SPONSORSHIP OPPORTUNITIES AVAILABLE Contact Wendy Hennessy at [email protected] SPONSORED BY FROM THE CEO LOOKING EASTWARD Steve Nash off ers his thoughts on China’s likely impact on the UK motor industry ome interesting themes for this issue of Most Chinese car manufacturers are currently IMI Magazine. As you will know from previous unknown outside of the country with only a handful columns the whole issue of alternative having any international presence. But there are Spowertrains and the future technical a lot of them and they undoubtedly all have plans direction of our industry is one that I have to be international players if they can be. This can expressed views on many times. Yet it is the future be viewed as a threat, or it can be viewed as an direction of the Chinese industry that I particularly opportunity. Just think how many people in the UK are want to consider on this occasion. employed currently by Japanese and Korean brands. The recent discussions between the government and Those who have been in the industry for a while will Nissan over Brexit underlined just what a key player remember the emergence of the Japanese brands in Nissan has become. It has certainly come a long way the 60s and early 70s and, more recently, the Korean since the days when Octav Botnar distributed its brands in the 90s and early 2000s. Neither were taken products under the Datsun name!! terribly seriously when they entered the market, adopting what were principally The point is that our industry high value/low price approaches is all about change, whether to gaining a foothold. However, “The point is that our it’s new technology like electric they progressively improved the industry is all about and autonomous cars, or quality, appeal and credibility change, whether it’s new entrants to the market. of their product offerings to The emergence of Chinese auto become major players in the new technology like brands is only part of the major UK and other key markets electric and autonomous change we will see over the around the world. cars, or new entrants coming years but if we adapt and embrace that change it Whilst the few Chinese products to the market” can bring great opportunities. currently available in the UK There is no greater evidence aren’t greatly worrying of this than the renewed pride we have in our car competitors as yet, it would be extremely naive manufacturing industry – despite the fact that it is to think they won’t follow a similar path to their no longer British-owned. It is the creation of jobs Japanese and Korean forbears. All of the foreign and the demand for skills which is key and in an manufacturers who benefi ted from the boom in the industry that is truly international it is less about Chinese market have only been able to do so by the origin of the product’s parent company and undertaking partnerships with indigenous Chinese more about the investment which that company manufacturers. Whilst this has seen many of them makes in the market. profi t handsomely in the short term, their Chinese partners are benefi ting in kind from technology Perhaps we should take a leaf out of the Chinese transfer and the assimilation of expertise that it took book and tell them that if they want to sell products those foreign motor companies many decades to here they must also manufacture here and use develop. So the partner Chinese brands have gained local suppliers. That could possibly be a highly the opportunity to advance well beyond where they benefi cial post-Brexit strategy to boost our might otherwise have been without this benefi t. manufacturing industry! WWW.THEIMI.ORG.UK I 3 THIS 14 ISSUE... NEWS 3 Welcome IMI 2016 8 Analysis yearbook 34 10 Round-up page 6 12 Frontline 14 Motorcycles 16 Commercial vehicles 18 BUSINESS ENTER THE DRAGON 22 On China’s growing impact Legal link in the UK motor industry 24 Finance 25 Digital 26 Sales clinic FEATURES 30 Stock 'n' roll Managing stock turnover 32 The reman-tra An insight into the world of remanufacturing 34 Who’s got the power? Pitting a plethora of powertrains against each other 38 “Car crash” avoided? An update on apprenticeship funding 39 Apprentice recruitment MY IMI Talking apprenticeships with 50 Around the IMI Autotech Apprentice Brakes & Clutches special 52 40 A van’s world starts page 42 Member events A growing revenue stream for bodyshops 53 Upcoming courses IMI MAGAZINE DESIGN: www.zedpublishing.co.uk claims made by manufacturers, Fanshaws, Brickendon, PRINT: Linney Print contributors, advertisers or readers. Hertford, SG13 8PQ ©2013 Institute of the Motor Industry Annual subscription (10 issues): UK and Europe Tel: 01992 511521 ISSN: 1742 5204 £45; overseas surface mail £50; overseas air Fax: 01992 511548 IMI Magazine is printed on paper taken from mail £62. To subscribe call 01992 511521 EDITOR: Tim Kiek sustainable forests. Opinions expressed in or visit www.theimi.org.uk [email protected] articles do not necessarily represent those ABC – Members of the Audit Bureau ADVERTISING: Wendy Hennessy, of the Institute of the Motor Industry. The of Circulation. Average Net Circulation [email protected] publishers cannot accept responsibility for 1 July 2015 to 30 June 2016: 12,631 4 I IMI MAGAZINE I DECEMBER/JANUARY 2017 FROM THE EDITOR AN INDUSTRIAL VISION On why traditional industries do not represent the past s I write this the world has had a few The common discourse dictates that the weeks to digest the news that Donald comprehensive dismantling of traditional industry Trump, barring intervention from above, is simply part and parcel of globalisation’s Awill become the next President of the inexorable ‘progress’. Interesting, then, that United States and, de facto, the most powerful global superpowers such as China and Germany man on the planet. The result has been met by pour billions into traditional industry without widespread shock but I would argue that, given being labelled as luddites or dinosaurs. UK it came within days of Ed Balls ‘Gangnam-ing’ administrations since Margret Thatcher’s, with on Strictly, it was far from the their unfettered adherence most shocking event of 2016. to neo-liberal doctrine, have prematurely condemned However, unlike Ball’s “As a country, since indigenous industry to the ‘Gangnam’, Trump’s the 1970s, our history scrapheap, contributing to the presidency was actually is one of squandered UK productivity gap compared entirely predictable. to other advanced nations. Unfortunately, the opportunities and the bitter irony of an catastrophic running down A UK government that has the entire nation turning to and mismanagement of ‘cojones’ to invest in a proper a billionaire demagogue our industrial and industrial strategy will go a to fi ght inequality is long way to redressing some beyond all satirising; manufacturing capacity” of the great inequalities in Charlie Brooker eat our society – and the motor your heart out! industry has a huge part to play. Imagine a vehicle ‘truly’ Yet Trump has said one thing that has resonated manufactured in Britain; a vehicle where every with me – his forthright repudiation of TTIP. single element used in its assembly has been As a country, since the 1970s, our history is one made in this country – steel and all. Such a reality of squandered opportunities and the catastrophic may hark back to a bygone era but, paradoxically, running down and mismanagement of our would still represent huge societal progress. industrial and manufacturing capacity. Agreements such as TTIP further drive the nail into our industrial coffi n as they enshrine cheap imports, not supremely manufactured British produce. Our steel, our coal – two industries that have been sacrifi ced on an altar that privileges free trade over the security of Tim Kiek, IMI Magazine Editor the supply of vital raw materials. [email protected] @IMIeditor To join the debate on any of the issues raised in the magazine, you can email me at [email protected], tweet me @IMIeditor or join the IMI’s LinkedIn group discussion page. I look forward to hearing from you. WWW.THEIMI.ORG.UK I 5 THE LATEST NEWS FROM THE INSTITUTE IMI 2016 YEARBOOK NEW IN 2016 •IMI Student Membership A busy year •IMI MOT solution •IMI Finance Taking a look at the IMI’s activity throughout 2016 and Insurance and seeing what’s in store for 2017 Accreditation •Partnerships with AA Garage Guide, Automechanika IMI speaks on behalf of the sector & ITN Production ELECTRIC VEHICLE CAMPAIGN APPRENTICESHIP REFORMS CAMPAIGN Since 2015 the IMI has been campaigning Earlier this year the government announced for regulation to protect technicians plans to change the apprenticeship working on electric and hybrid vehicles. standards in England. As the motor industry Working alongside government and relies heavily on apprentices the IMI is cross-party MPs the IMI built a national playing a vital role in raising awareness campaign to raise awareness of the skills of the potential impact the proposed shortage that is being widened due to changes could have on the sector.