Performance of the UK auto- and motor industry Literature review

Performance of the UK auto- and motor industry - Literature review Example Because of this superior level of internet sponsored network connectivity, the world has become a highly connected one single global entity. It is highly interesting to mention that the level of dependency that exists in between the organizations and business forums of various countries and markets is widely varying and largely diversifying in nature. As of the recent times, the advanced markets located in the well developed economies are facing factors of low demand because of the influence of a wide range of macroeconomic factors like the slow growth in the economy and fall in purchasing power of the consumers. It has become a common and normal trends for the companies and organizations located in the regions of slower growth to look forward to the markets of emerging economies like Africa, china, Russia, Brazil and India so as to secure their growth lines of the future (IMF Research Dept, 2012, p. 7) . The UK motor segment forms a very crucial and critical part of the entire motor industry of the European region. The factors like product manufacturing, combined participation and sharing of manufacturing policy by the auto manufacturers as well as the multiple markets served in a combined basis by the entire European automobile sector makes the contribution of the UK motor industry very important. It also has to be taken into account that the production of the automobile sectors in the UK region contributes in a positive manner in the economy and society of the nation (Johnson, 2002, p. 164). UK auto industry: sector overview It is highly relevant to mention that the most of the nations of the European region is facing extended periods of macro level economic challenges in regards to the troubles of the Euro zone. Since the UK motor industry shares a high degree of contribution based dependence with the entire European motor industry, it is very natural that the potential influence of the regions’ macroeconomic challenges is bound to cast a shadow on t he prospects of the UK automobile sector. As of October 2012, various reports on the automobile sector of the UK region hinted to the fact that around 1400 workers of the motor sector is about to lose their jobs as a result of cuts that are supposed to be initiated by the motor manufacturing giant Ford in its plant locations of Southampton and Dagenham. Further insights revealed that the job cuts in the motor sector is an outcome of Euro zone powered effect which comprised of uncertainty in the business environment as well as erosion in demand. It was also realized that Ford has focused on consolidating its manufacturing operations in the European region on the strategic grounds, while trying their best to absorb the case of depreciating demand of finished products from the European region. Talking on the lines of impacts and threats faced by the automobile sector of UK, it has to be said that the automobile sector faces serious issues on the lines of rising cost of manufacturing in the UK region as well as highly