Tag Archives: automotive

Building an #innovative economy

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1395308240_silicon-valley-sign-lg

Here in the UK we hear lots about the need to grow the economy but a lot less about how to do it.

If we want to develop an innovative society we need look no further than Silicon Valley which is the most successful example on earth.

Silicon Valley has key attributes which are key to its success in generating billions of dollars in revenue & employing thousands of talented Engineers who earn enviable salaries. These attributes are not immediately obvious:-

  • It may surprise many to learn that Silicon Valley has a strong military connection particularly with the U.S Navy, many early innovations were as a result of collaboration on Radio & communications systems leading to the Arpanet the direct forerunner of todays Internet. Some of today’s smartest innovative individuals work in the Defence Industry so it would be obvious to cultivate those links.
  • The presence of an Internationally renowned eduction establishment – Princeton – has been key to the ‘Valleys’ success. Princeton has developed & encouraged technically educated entrepreneurs to start & grow numerous successful enterprises.The U.K has some of the world’s leading Institutes, unfortunately recent government policy seems to make it increasingly unviable to survive economically as a Student so the reversal of that trend is another positive.
  • People may be surprised to learn that Silicon Valley is the home to numerous large Law firms whose accessibility has allowed start ups to quickly resolve disputes & grow rapidly. We can learn a lot here.
  • Over 30% of SV residents are immigrants. The ability to welcome International migrants who are highly skilled & educated creating a multinational society of entrepreneurs & Engineers is a key component to success. This requires a sensible proactive immigration/visa policy which addresses the need for skilled Engineers whilst improving our domestic training & development policies.
  • There are many Venture Capital firms in the area which provide key access to funding to ensure prosperity & growth. This seems to be a major gap in the UK where the access to venture capital is constrained.

All of these key components are essential if an Innovative Society is to thrive & grow generating huge revenue & employment prospects.

Chris@amberhill.biz

www.amberhill.biz

Reasons to be cheerful

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2024 has been another tough year for the UK Automotive industry but let’s remind ourselves of some of the positive developments:-
1. Tata’s £4 Billion Investment in a UK Battery Factory: Tata Group announced plans to build a significant electric vehicle (EV) battery factory in Somerset, marking one of Europe’s largest such facilities. This investment is set to supply Jaguar Land Rover’s future electric models, including Range Rover, Defender, Discovery, and Jaguar brands, with production expected to commence in 2026.
2. Record High EV Registrations: The UK’s zero-emission vehicle (ZEV) policy proved effective, with over 25% of new car registrations in November being electric—the highest on record. This surge reflects growing consumer confidence in EVs, bolstered by expanding charging infrastructure and the increasing affordability of used electric cars.
3. Clarification on Hybrid Vehicle Sales: The UK government clarified that new hybrid cars would remain on the market until 2035, despite the planned ban on new petrol and diesel cars from 2030. This decision provides the automotive industry with a clearer transition path towards full electrification, allowing manufacturers and consumers to adapt accordingly.
4. Jaguar ran a highly successful marketing campaign & revealed their astonishing concept EV at the Miami art show polarising opinions & generating more discussion about Jaguar than the last 30 years.
5. Bentey launched their Fourth-Generation Continental GT Speed: Bentley introduced the 2025 Continental GT Speed, its most powerful model to date. This fourth-generation vehicle features a twin-turbo Ultra Performance Hybrid V8 engine, producing 771 horsepower and accelerating from 0 to 60 mph in 3.2 seconds. The design incorporates elements from the Mulliner Bacalar and Batur concept cars, including a new single-headlight setup, marking a first for Bentley since 1959.
6. Strategic Electric Vehicle (EV) Plans: Bentley announced plans to launch its first electric vehicle, a luxury SUV, in 2026. Additionally, the company will continue offering plug-in hybrid models until 2035, adjusting its electrification strategy to meet global demand and varying regional adoption rates.

2025 will see more major challenges & many significant developments & innovations. Bring it on.

chris@amberhill.biz

www.amberhillassociates.com

Jag you are…..

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If you’re reading this I guess your one of the 300 million who have seen this Ad & are aware of the absolute furore it has created amongst the Automotive community & beyond, particularly those who consider themselves loyal Jaguar customers & lovers of the brand.

Indeed Jaguar has a long proud history of auto design & manufacture producing such icons such as the e-type & xj series amongst others.

Many have reacted quite strongly with accusations of ‘wokeness’, one even accused the ad of being ‘feminine’ as if that was the greatest slur.

Most of this vitriol seems to come from middle aged men who are, as many studies show, the main demographic of Jaguar owners.

Indeed Jaguar’s sales figures reflect this with steadily declining sales mirroring the demise of said demographic.

Now before you hurl abuse at me I admit I am part of that demographic & I have some stake in Jaguar, I have done much work with JLR over the years & am proud of that. I have also owned 2 jags & loved those cars.

However with the advent of electric vehicles they face a huge dilemma- reinvent themselves or die.

In order to do this they need a radical redesign & a new market.

The guy in charge of the design (who has barely got a mention in all of this ) is Gerry McGovern – if you’re not familiar with his work do your own research.

Copy Nothing

chris@amberhill.biz

Countdown to zero……………..#EV

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The U.K Governments decision to ban the sale of new petrol & diesel cars by 2030 presents some real challenges for the UK Automotive industry. A development lifecycle of 5-7 years is not unusual for a brand new model & when we are looking at a whole different powertrain & chassis with the consequent implications for production assembly then we are talking major developments.

JLR spent over $1 Billion developing its 2014 Engine Plant for Diesel & Petrol Engines, this gives some indication of the huge resource requirements for Battery powered vehicles.

There is a lot of debate as to whether Electric Vehicles actually produce less CO2 than their ICE (Internal Combustion Engine)  counterparts but this report from ICCT organisation clearly debunks this.

There is some parallel with the elimination of leaded petrol, responsible for the death of over 5000 adults per year & countless examples of brain damage to children; it took over 12 years from unleaded petrol being available to a European Directive in 2000 before it was eventually banned.

Interestingly the Government announcement makes no mention of exporting ICE vehicles; only sales in the U.K. As we currently export 80% of all UK manufactured cars (admittedly 55% to the Eu) there is a little bit of wriggle room for Manufacturers to continue making ICE cars in lower volumes beyond 2030. There are many part of the World where Electric Vehicles will not prevail for many years to come but in urban conurbations in the ‘developed’ world their ascendancy is without doubt.

This will result in huge engineering & change management opportunities in the ever evolving automotive sector.

There will be much debate over the coming decade about the pro’s & cons of electric cars but there is no doubt about it, after a century of production the Internal Combustion Engine is heading for the breakers yard.

chris@amberhill.biz

www.amberhill-associates.com

 

Where we’re headed in #2021

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Wow!! – 2020 – you couldn’t make it up; so where are we headed in 2021?

  • Working from home is now a cultural norm; whatever happens to Coronavirus this is one trend which will not be reversed. Workers who are savvy enough & technologically enabled to work remotely will continue to seek out opportunities which offer this option making its reversal impossible. Declining revenue from City Real Estate will instigate a decline in Inner City Property prices & a mass migration to the suburbs. The London property bubble is well and truly ‘popped’
  • eCommerce market share will continue to increase; if the High Street is not dead it’s on its last legs & is wobbling badly. This will drive eCommerce logistics where same day delivery becomes the norm.
  • ReCommerce sustainability will drive a mass market of re-use & hiring of products for the short term rather than as a one off purchase.This will also impact the automotive market.
  • Cloud storage of data will continue & there will be an even greater emphasis on the customer.
  • In Automotive, the current trends of increasing electrification & automation will drive a decrease in car ownership in the Western  world of around 25%. As new Generation-Z drivers familiar with the cultural trends of shared ownership & reduced carbon footprint migrate away from individual ownership where cars currently spend 95% of their time sat in a parking lot. China will continue to grow driving local manufacturing capacity.
  • Brexit will give UK Auto companies the excuse they are looking for to slash car lines, reduce factory real estate & reduce headcount.

Chris Robinson BSc

www.amberhillassociates.com

 

Automakers on limp mode………#automotive, #manufacturing, #uk, #Covid-19

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As the automotive industry limps back to work post Covid-19 the world is a very different place & will stay that way for a long time. The future success of these companies is very dependent on having an adequate electric vehicle proposition as we head towards the next hurdle which is coming up fast – #Brexit & further ahead the abolition of fossil fuels cars in 2035 or even sooner. So what are the implications for manufacturers based in the U.K.

Aston Martin.

Recently announced redundancy for 25% of its workforce & the replacement of CEO Andy Palmer – the future of Aston depends on the success of its DBX SUV model which is built in South Wales. No electric models on the horizon.

Benley.

VW owned Bentley has now returned to work at Crewe but is struggling to maintain capacity & is rumoured to be running at @ 50% following the introduction of social distancing measures – consequently Bentley has announced redundancy plans affecting 25% of the workforce. Bentley doesn’t have a fully electric car but intends to develop one by 2025.

Jaguar Land Rover

JLR has returned to work at Solihull & more recently at Halewood. They have announced today that Castle Bromwich will not re-open until 10th August.  JLR has one electric vehicle at he moment, the award winning I-Pace but this is built at the Magna plan in Austria. Plans are in place to extend the range & to build these cars at Castle Bromwich. JLR has not announced any post covid redundancies having gone through an extensive restructuring exercise in 2018/19 but no one would be too surprised if further cutbacks were announced given the company has lost 3 months production & was recently granted a 500 million loan from 3 Chinese banks.

Nissan

Nissan recently returned to work at it’s Sunderland Plant following an announcement about a post Covid worldwide restructuring which will see the closure of its Barcelona Plant & commitment to Sunderland as a manufacturing centre for Quashqai & Juke SUV’s & could also produce their Renault counterparts the Kadjar & Capture.

This was further quantified by a statement a week later that this all depends on their being frictionless trade with Brussels. Given recent developments failure to achieve this by the EEC & the UK government would be tantamount to a suicide pact.

The other bonus for Nissan is that Sunderland produces 15k of the incredibly successful electric Leafs per year.

Toyota.

There have been no major announcements from Toyota but they have returned to work in Derbyshire producing a range of hybrid vehicles. Toyota’s strategy is to reduce overall carbon emissions by producing hybrid vehicles rather than full electric vehicles due to the current constraints around battery technology.

Mini

Have returned to work at Oxford having remodelled processes around social distancing & are producing some Electric Minis as part of the range.

Lotus 

— Geely group has invested in Lotus heavily & the company has a tight well targeted product range including the fantastic new all electric hypercar the Evija. The company has also benefited from picking up a number of talented & experienced engineers from JLR.

Whatever the next few years brings we will be looking at a tighter, leaner UK Automotive industry with some losers & some big winners depending on their ability to meet the challenges of post Covid, Brexit & Electrification.

chris@amberhill.biz

www.amberhill.biz

 

 

 

Riding the gravy train #autonomousvehicles #HS2

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I’ve got a meeting in the Capital in 2 hours to discuss an important project so I call up an AV by thinking inside the box (which resides in a corner of my brain)

I get an alert inside my brain box & head for the door. I don’t carry any hardware as I’m permanently connected to the cloud.

The AV glides up & an orifice appears so I hop in & relax in the sumptuous surroundings, I click a switch in  my brain box & the vehicle becomes transparent – I want to enjoy the journey today & take a break from screens.

As we travel towards the motorway we pass the old JLR plant, after they moved all production to Slovakia following #brexit the site is now used as a storage facility for expired batteries.

Pretty soon I’m joining the M6 Hyperway, a 12 lane superhighway augmented for AV’s. My AV joins the swarm & accelerates to a steady 130mph surrounded by other AV’s centimetres apart. Statistics prove that travelling in an AV is much safer than air travel.

Shortly we pass the Birmingham Curzon St station – now used as an Art Gallery after the #HS2 project was abandoned when Government subsidies were withdrawn following the election of the Greens.

We’re approaching the Capital now & I’m reflecting on what a great city Manchester is & how its developed since the terminal decline of London after #brexit & the ‘Great Exit’ of the Finance Industry.

As my AV glides through the suburbs & I prepare to disembark I’m laughing at the notion that once upon a time some people thought we would still be using trains that ran on rails!

Chris@amberhill.biz

www.amberhill-associates.co.uk

 

#Brexit Exit ?…………………..#automotive

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copyright C Robinson 2018

Discovery Experience

This week JLR hit the headlines as they announced plans to transfer production of their Discovery model from Solihull in the West Midlands to Slovakia.

This factory is nothing new – it was first announced to the press in 2016:-

https://www.tatamotor

JLR also has manufacturing facilities in Brazil, China & India. Like all global automotive players its manufacturing sites are scattered across the globe although before the Tata takeover they were all in the UK but that was before the Indian conglomerate invested $billions into the company & transformed it from a niche brand to one, although small on a Global  scale, has more than doubled its workforce in the UK to over 40,000 people as well as expanding the range of products enormously. Without this massive investment Jaguar Land Rover would not exist in its current form.

The move  does however highlight something which ardent Brexiteers seem to be unable to grasp. All these large global businesses have no overriding loyalty to any particular country & are in the business of generating revenue not pandering to some quaint notions of nationality, so they adapt their business to suit the geo-political conditions of the times.

One must ponder then what is the benefit of introducing additional barriers to making business easier. Additional bureaucracy & costs in the form of tariffs & customs charges when parts are arriving from all over the globe just doesn’t make business sense. If Britain leaves the customs union it will cause a massive headache for companies like JLR who import & export millions of components & parts every year. Longer term this will give them greater incentive to set up manufacturing sites inside the European Economic entity.

The harder Brexit gets the easier Exit gets.

chris@amberhill.biz

www.amberhill-associates.co.uk

All views expressed in this blog are the authors alone. 

Dyson Car to ‘hoover up’ competition……#innovation

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Dyson-carSir James Dyson has revealed what many automotive industry insiders already knew by rumour – his company is developing an Electric car ! The fact that Dyson have no automotive precedence or manufacturing facility should not be seen as a show stopper – there is plenty of subcontract capacity available (at a price) although his timescale of 2 years to volume manufacture is probably over ambitious.

Many current Automotive specialists will laugh at the idea of Dyson moving into this arena with its complex & demanding legislative requirements but perhaps that is missing the point.

Dyson recently bought innovative Solid State battery development company Sakti3 for $90 million & half of Dysons $2.7 billion will be spent on battery development.

The batteries developed by Sakti3 are Solid State which offer much higher energy densities & battery life than current Lithium Ion batteries.

Perhaps the likely scenario is that Dyson will use his Electric car to showcase the real diamond in the rough – a vastly superior battery technology which will then be licensed to the main automotive players enabling the Wiltshire Innovator to truly ‘clean up’

chris@amberhill.biz

www.amberhillassociates.com

“Beam me up Scotty”………………………….#innovation

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The UK Governments recent announcement to ban the sale of new diesel & petrol cars by 2040 is just another exercise in ‘smoke & mirrors’ & puts most of the onus on Local Authorities – “The government will require councils to produce local air quality plans which reduce nitrogen dioxide levels in the fastest possible time.”

By 2040 Technology may have advanced to the point where we no longer even drive ‘cars’

Looking back 23 years ago was when the world wide web was born. No iPhones, No Google, no Netflix, mobile phones had batteries bigger than the phone & we watched movies on VHS tapes. Back then only 7% of cars were diesel – that was before the Government encouraged the production & purchase of diesel cars in an effort to reduce Carbon Dioxide emissions in the face of global warming.

There is no doubt that in the next few years Electric cars will begin to dominate the market; all of the big players already have plans in place to make at least 50% of all new models Electric.

The biggest challenge is having the infrastructure in place to keep pace, charging points at workplaces & in Cities will be a massive bottleneck in the near future. They are committing 100 million GBP to this in the way of grants & this is a good start but unlikely to deliver the required changes fast enough. Anyone who has driven on the M6 regularly will tell you they have been building a ‘smart’ motorway for 4 years & it is not due for completion until 2019.

Read about the Government Plan for Clean Air Quality here & form your own opinion.

As we move towards an era of electric autonomous vehicles the biggest threat to the manufacturers will be that of ownership. If I can summon a car on my mobile & get driven anywhere – a grander form of ‘Uber’ – why would I want to ‘own’ one.

By 2040 I may be able to teleport via quantum entanglement – no doubt the Government will have to invent a new tax to replace that currently used to tax the roads.

chris@amberhill.biz

www.amberhill.biz