UK carmakers lead industry upturn

By Hugh Pym
Business correspondent, BBC News, Somerset

Firms can compete in high quality, low volume carmaking, experts say

Founded in the late 19th century, Ariel was one of the pioneers of British motoring.

Like so many big names of the auto industry it reached its zenith in the 1950s and like most others too, it was a long slow decline from there.

But in 2000 the Ariel name was revived with the launch of a new model called the Atom and since then it has gone from strength to strength.

Its re-emergence is a classic case study of British manufacturing.

High-volume mass-market production is now the province of low-cost manufacturers, particularly those based in Asia.

But British companies can succeed with high quality niche engineering products.

This is the main message of the latest survey from the Engineering Employers Federation (EEF).

It has reported that output and orders are growing at their fastest rate since early 1995 and it says the car industry is leading the revival of the wider sector.

Made in Britain

Ariel's renaissance is down to the vision of its owner Simon Saunders.

After several years experience as a car designer with big motor industry players he decided to go it alone. The Ariel Atom, billed as a racing car for the road, was his brainchild.

From 25 cars in its first year the company is hoping to produce 100 over the next 12 months in the UK while another 300 will be produced under licence in the US and China.

Only last week it moved into new expanded premises at Crewkerne, Somerset.

Mr Saunders believes the UK is good at making cars but, almost entirely now, for other people.

All the leading volume manufacturers are owned by overseas corporations or investors but he is proud that his product is made in Britain by a British owned company.

He uses the expression "phoenix from the ashes" to describe Ariel, and agrees that it would be an apt description too, for much of British manufacturing industry.