Motor industry

Many other articles in Quest deal with aspects of the motor industry, because it is a large and varied sector. With an annual turnover of £65 billion and a workforce of 600,000 people, which supports nearly 2 million jobs (6.4 per cent of the UK’s workforce), it has 69,000 companies (90 per cent of them small businesses). The retail motor industry sells 33 billion litres of fuel annually to fill up over 30 million vehicles requiring 24 million MOTs at nearly 20,000 testing stations. Motoring contributes £45 billion a year in tax (11 per cent of all government revenues), with fuel taxes totalling £25 billion, VAT of £11 billion, licensing raising £5 billion, and income tax and National Insurance on company cars and fuel of £4 billion. There are 230,000 automotive technicians in the UK, with an average age of 33; but the industry suffers from skills shortages and not enough people – particularly graduates, women and people from minority ethnic groups.

Annual numbers of new cars are around 2.25 to 2.5 million, with light commercial vehicles numbering around 325,000. The sector accounts for almost 10 per cent of annual total manufacturing turnover and has an export value of £20 billion (10 per cent of total UK export value).

This article will concentrate on:

• franchised dealers – licensed by manufacturers to sell, maintain and repair vehicles
• independent garages – offering a wide range of services across the industry
• body builders and repairers – nowadays using new materials and being environmentally aware
• parts suppliers – employing modern stock management processes and electronic links
• fuel retailers – involving health and safety, and allied retailing
• glass and tyre specialists – installing and repairing vehicle glazing and tyres.

Apart from the most specialised and expensive ones, vehicles, like everything else nowadays, are manufactured from components that are in turn made from sub-components that come from different places. So they consist of a number of different bits manufactured in many different places throughout the world. Vehicles also share components, and the huge companies nowadays own a number of brands. So, for example, Ford owns Jaguar, so that 20 per cent of the components in an X-Type Jag can also be found in the top ranges of Ford cars. Therefore factories are places where vehicles are ‘assembled’ rather than ‘made’.

Motor Industry and the Services

Each Service has its automotive mechanical and electrical mechanics and technicians who may in some instances be dealing with extremely complex vehicles. However, repair may often consist of component replacement, and whole life maintenance contracts are increasingly being let as well as those for the complete provision of an entire class of vehicle. Under non-operational circumstances Service vehicle management is becoming more similar to civilian practice than was the case in the past, as is reflected in the qualifications available and institute membership.

Like many other areas, the principles may be the same but the practice and the hardware are often very different. Few Service people become involved in buying and selling vehicles, however repair, maintenance, fuel and inventory management may well be skills that translate easily into a second career.

Qualifications and training

The range of qualifications is vast. National Occupational Standards – the levels of competence required for various tasks – are set by Automotive Skills, the retail motor industry’s Sector Skills Council, and cover:

• the technical areas of the industry
• parts operations
• sales operations
• management, in the form of the Automotive Retail Management Standards.

Major qualifications include a number of Vocationally Related Qualifications, National Vocational Qualifications and Scottish Vocational Qualifications in:

• Roadside and Assistance and Recovery
• Vehicle Body and Paint Operations
• ·ehicle Fitting Operations
• Vehicle Maintenance and Repair.

The framework of apprenticeship programmes, at Apprenticeship and Advanced Apprenticeship levels, covers the following six sectors of the industry:

1. vehicle fitting

2. vehicle maintenance and repair

3. vehicle body and paint operations

4. vehicle parts operations

5. roadside assistance and recovery

6. vehicle sales.

There are a number of academic programmes available at business schools, some sponsored or supported by major companies, that lead to an industry-relevant degree, as well as graduate training schemes. Professional engineering qualifications are also available through the Institutes of:

• Road Transport Engineers
• Mechanical Engineers
• Electrical Engineers
• the Motor Industry.

Accounting, personnel management, and sales and marketing qualifications, highly relevant to a career in the industry, may also be taken through learning provided by the relevant institute.

The Institute of the Motor Industry (IMI) has over 25,000 members worldwide, employed at all levels of the motor industry, and operates in all its sectors. It offers the usual institute benefits and has the following membership levels:

• Affiliate – working towards recognised qualifications
• Licentiate – working in the industry but not qualified for higher grades (Level 2)
• Associate – qualified member (Level 3)
• Member – qualified as middle manager (Level 4)
• Fellow – qualified as senior manager (Level 5).

It also offers two specific awards for technicians, recognising technical qualifications and experience:

1. Advanced Automotive Engineer (AAE) – for master technicians

2. Certificated Automotive Engineer (CAE) – for qualified vehicle technicians.

It has developed an Automotive Technician Accreditation programme for technicians, backed by major vehicle manufacturers, independent service and repair organisations and Automotive Skills. The IMI also runs a programme of NVQs:

• light vehicle (Levels 2 and 3)
• heavy vehicle (Levels 2 and 3)
• motorcycle (Levels 2 and 3)
• lift truck (Levels 2 and 3)
• auto electrical (Levels 2 and 3)
• mobile electronics and security (Level 2)
• vehicle fitting (Levels 2 and 3)
• tyre fitting (Level 1)
• specialist tyre fitting (Level 2)
• body repair (Levels 2 and 3)
• refinishing (Levels 2 and 3)
• MET/body fitting (Levels 2 and 3)
• roadside recovery (Levels 2 and 3)
• roadside assistance (Level 3)
• transport engineering and maintenance mechanical (Levels 2 and 3)
• transport engineering and maintenance electrical (Levels 2 and 3)
• transport engineering and maintenance body cladding (Levels 2 and 3)
• vehicle parts (Levels 2 and 3)
• vehicle sales (Levels 2 and 3)
• customer service (Levels 2 and 3)
• administration (Levels 2 and 3)
• management (Level 3).

All these progress towards Level 4 qualifications in automotive retail management and technical subjects.

Employment

Most job roles in the motor industry may be undertaken at a number of levels. These include:

• technical
• sales and marketing
• management and administration.

Franchised dealers and independent garages generally sell and maintain vehicles; either those made by one particular company or group, or operating across the whole industry. Franchises tend to be larger operations, often part of a chain, while independents will probably be smaller, more family-run, businesses. Both offer opportunities for apprentices, operatives, technicians, office staff, mechanical and electrical engineers, sales staff, managers, customer service staff and other skills, including marketing, accountancy and personnel.

Vehicle body builders and repairers convert a bare chassis into a customer-specific order, often specialising in lorries and coaches and a few high-end cars. Builders create the final vehicles, be they Luton-style vans or curtain-sided articulated lorries. Repairers deal with damaged vehicles that are increasingly complex, using techniques like welding, new part fitting, panel-beating, and spray-painting; using materials including plastics, aluminium, alloys and paints in accordance with legislation and environmental safeguards.

Parts suppliers are wholesale specialists supplying dealers and garages with parts obtained from vehicle and component manufacturers. They hold extensive stocks and often use their own vehicle fleets to supply their customers. They use modern inventory control equipment and IT management systems in highly computerised operations. The balance between holding too much stock of a particular item and running out is a fine one and it has to be drawn for millions of different items.

Fuel retailing include the selling, delivery and storage of a variety of fuels – petrol, diesel and natural gas – as well as gas cylinders for use in caravans, heaters and barbecues. Wholesalers sell to retailers, dealers and garages, who in turn sell to their customers. Nowadays, a fuel outlet may sell other goods and even operate a 24-hour shop or mini-market; or it could be a forecourt in a supermarket car park.

Automotive glaziers, tyre and exhaust specialists, and other businesses deliver increasingly complex services to customers. They include electrically heated windows, antennas, satellite navigation, in-car mobile phone installations, and the massive variety of tyres now available, either as emergency repairs or resulting from customer demands.

Sources of information

Automotive Skills, 93 Newman Street, LondonW1T 3DT Tel: 020 7436 6373 Website: www.automotive-skills.org.uk

Institute of the Motor Industry, Fanshaws, Brickendon, Hertfordshire SG13 8PQ Tel: 01992 511521 Website: www.motor.org.uk

Retail Motor Industry Federation, 201 Great Portland Street, LondonW1W 5AB Tel: 020 7580 9122 Website: www.rmif.co.uk

Vehicle Builders and Repairers Association, Belmont House, Finkle Lane, Gildersome, Leeds LS27 7TW Tel: 0113 253 8333 Website: www.vbra.co.uk

Automotive Distribution Federation, Aftermarket House, 5 Marlin Office Village, 1250 Chester Road, Castle Bromwich, Birmingham B35 7AZ Tel: 0870 458 2300 Website: www.adf.org.uk

National Tyre Distributors Association, 8 Temple Square, Aylesbury, Bucks HP20 2QH Tel: 0870 900 0600 Website: www.ntda.co.uk