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FT 24 JUN 93 / Parliament and Politics: Warning on car companies
THE arrival of Japanese car companies as manufacturers in the UK has had a
big effect on upgrading the quality and productivity performance of some of
the larger players in the UK motor and components industry, Mr George
Simpson, chairman of the Rover vehicles group, told MPs yesterday.
But there is a danger that many smaller and medium-sized suppliers will
disappear unless the big components companies pass on the lessons learned
from their Japanese customers, he told the Commons trade and industry
committee, which is inquiring into the competitiveness of UK manufacturing
industry.
Most carmakers have sharply reduced the number of their direct component
suppliers, forging partnerships with them and expecting them to have strong
design and development capabilities. Smaller and medium-sized companies are,
in effect, becoming suppliers to the larger 'first tier' component groups.
Describing the overall impact as 'very much beneficial' to the UK motor
industry, Mr Simpson warned that as production by Nissan, Toyota and Honda
increases competitive pressures throughout the EC will intensify and that
'they will reduce everyone's market share'.
For that reason, the government should resist pressures to open the UK
market completely to Japanese imports while other EC member states kept
restrictions in place during the EC's transition to a completely open market
by the end of the decade.
Countries:-
JPZ Japan, Asia.
GBZ United Kingdom, EC.
Industries:-
P3711 Motor Vehicles and Car Bodies.
P3714 Motor Vehicle Parts and Accessories.
Types:-
NEWS General News.
The Financial Times
London Page 9