THE UNITED KINGDOM AUTOMOTIVE INDUSTRY: THE ONSET OF A HIGHLY UNCERTAIN FUTURE

Contents

ABSTRACT. 4

CHAPTER ONE.. 5

Background. 5

Problem Statement 7

Research Questions. 8

CHAPTER TWO.. 10

LITERATURE REVIEW… 10

Theoretical framework of the study. 10

The product, process, structure and prevailing business model 10

Challenges facing the UK automotive industry. 12

The short and long-term effects of Brexit to the UK automotive industry. 13

Social and Economic Impacts of Brexit 15

Performance of the UK automotive industry as a whole. 17

HISTORICAL PERFORMANCE.. 18

Analysis of two Companies in the industry. 20

NISSAN.. 20

TOYOTA.. 22

Distribution Model 23

Use of Technology Skilled Labour 24

Consumer mobility. 24

Technological and Regulatory Issues. 25

Electric Cars. 26

Rolls Royce Assessment 26

Measures Put in Place by Rolls Royce Company CEO.. 27

Conceptual Framework and Conclusion. 33

CHAPTER THREE.. 35

RESEARCH METHODOLOGY.. 35

RESEARCH DESIGN.. 35

Research Method. 36

The Population of the Study. 36

Data Collection. 36

Interviews. 37

Questionnaires. 37

Data Analysis. 39

Research Ethics and Concerns. 40

CHAPTER FOUR.. 42

RESULTS AND DISCUSSIONS. 42

DISCUSSION OF RESULTS. 43

RELATIONSHIP BETWEEN THE UK AND THE EU MARKETS. 44

Investment Options in theUK Automotive Industry. 45

The Automotive industry as a source of employment 46

CHAPTER FIVE.. 47

RECOMMENDATION AND CONCLUSION.. 47

RECOMMENDATIONS. 48

REFERENCE.. 50

 

 

 

 

 

 

 

 

 

 

ABSTRACT

This research aims at explaining how the European market operates with a specific interest in the automotive industry, impacts on the society and the effects of Brexit on the single market; the trends applied in the operation of the industry and the various trends adopted by companies in the industry, and how the business environment affects the functionality of the companies in this work. The researcher used questionnaires to collect information on the opinion of the customers on; the various brands of cars produced and their performance, the impact of Brexit on the industry, how Brexit will affect the employment of the people living where the plants are located and the relationship between the European Union (EU) and the United Kingdom in terms of trade in the region. The researcher of this work also explained the findings stating that the automotive industry was a source of lively hood to the people and promoted development in the county directly and indirectly. Conclusions were made that there was need for the UK to work on negotiations on how favorable terms of trade could be established between the UK and the EU.

 

 

 

 

 

 

 

 

CHAPTER ONE

Background

The automotive industry in the United Kingdom (UK) entails the manufacturing of machinery with specification on vehicles. In the 1950’s the UK was the second largest producer and exporter in the industry globally. Currently, UK is ranked at 12th position in the word index in the automotive industry. The changing dynamics that include competition from other producers are the main reasons why the UK have dropped in position, 41% of the cars made in the country with the rest being imports from other countries Toyota being the main challenger for the UK operators.

According to the SMMT report, the automotive industry in the UK performs a pivotal role in job creation with 175,000 people working in the manufacturing plants and an additional 675,000 people operating in other sectors related to the automotive industry. £50billion is the amount generated as revenue over a year and £45billion as revenue tax from the industry.

Britain has however managed to stay in business despite the challenges face in the industry. The pie chart indicates the level of production and consumer market for the major players in the market. The automotive industry in the UK has been one of the economic drivers in the country providing an economic potential in the region. Recently, the industry has faced the biggest challenge being the exit of Britain from the European Union. Concerns have been raised by various stakeholders and advisors citing the demise of the industry following the Brexit. Some of the most adverse effects the industry is likely to face in future are;

Market Shift to the Western Countries: Britain is most likely to lose most of the consumer population to companies like Toyota and Honda which are of the western origin. These firms have the advantage of being close to the consumers providing a chance for them to fully establish relations that may be very difficult to undo.

Unemployment; the falling automotive industry will have to come with strategies that will keep the business from complete fall. Employment may be cut to reduce the expenditure and focus on profitability and building of the industry.

Drop in the general economic level; stakeholders in the sector may decide to invest in the west or other companies. This may cause a decline in the level of economy and the general performance of the country.

Problem Statement

The automotive industry in the UK has in recent times faced challenges brought by the Britain exiting the European Union. The disadvantages of the impact will have a short and long term effect on the automotive industry and the general economy in Britain. According to (Wheatley, 2016 pp. 32-39), the UK will be facing tough financial times considering the fact that the EU single market is no longer at its disposal. Some of the challenges faced by the industry are reduced revenue collection, drop in the GDP, market restriction in the EU market and unemployment. The car manufacturing industry and other related firms provide employment for people in the UK. Britain’s exit from the EU has been key in the development of negative impacts that are currently affecting the automotive industry in the UK.

Research Objective

The aim of this research is to:

Evaluate and interpret how the UK automotive industry operates and the developments made in the operation process.

Investigate the impact of British exit from the European Union on two individual companies in the automotive industry.

Provide and explain the trends in the operation process based on the political and economic factors.

Predict what is expected in the next three years on the current trends in use.

Financial and other problems facing Rolls Royce and reasons why the company issued 5 profit warnings, then provide an assessment of the measures put in place by the company’s CEO.

Compile a concluding summary of reasons why the pension fund should be increased for Rolls Royce and Jaguar Land Rover holdings.

Exposure to the UK automotive industry as a whole based on the findings in 1 and 4 above.

Research Questions

How does the UK automotive industry work and what are the developments made in the operation?

What are the impacts of Brexit on individual companies in the industry?

Based on political and economic factors, explain the trends in the automotive industry.

What is expected of the trends in use in the next 3 years?

Why should the pension fund be increased for Rolls Royce and Jaguar Land Rover?

Explain the financial and non-financial factors that cause Roll Royce to give financial warnings. What were the measures put in place by the company’s CEO?

What is the general exposure of the automotive industry based on the findings in

1 and 2 above?

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER TWO

LITERATURE REVIEW

This work seeks to explain the impact of Brexit on the automotive industry in the United Kingdom and how individual companies are affected.

Theoretical framework of the study

This work is based on the expectations of investors and analysts concerning the effect that will fall on the automotive industry in the UK. Critical emphasis has been focused on the country’s economy, employment, revenue collected and dominance in the automotive sector. In recent past, the industry was highly valued with the UK being among the dominating members, a fact which has changed over time as a result of competition from emerging players in the market and the dynamic nature of the business structure and demand.

The product, process, structure and prevailing business model

The business model in the UK automotive industry was ineffective in meeting the challenge of sustainability. For a business to be successful, there needs to be a co-existence between the economic and the social environment. The study by Wells (2013) argues that for the automotive industry to have a beneficial change in terms of sustainability and market endurance, there is need for an alteration of the current business models that are relied on to control the manufacturing and selling of vehicles.

The sustainable business model proposes that there is a relationship between the attributes of the goods produced, the manufacturing process, the structure of the industry and the business strategies adopted. It is also suggested that; these value chains are not limited and their ratios are bound to differ during different circumstances. One clear ideology, however, is that, the industry experiences hindrances in the presence of an inverse ratio of different key points. For example; it is difficult for an established plant to adopt new technology, an established product on the other hand cannot be produced by an unsustainable industry

The model also emphasizes on time and place. With proper environment and implementation at the right time, the industry is said to be more stable. While aiming for a strong foundation, it is good to take into consideration, the political arena, the civil society and the timing, the economic and social factors. The model emphasizes that sustainability is a process that focuses on ensuring that the industry becomes more stable, not stagnant.

It is argued that the industry is becoming more unstable because of more reasons aside from Brexit. These factors include; the social, economic and environmental factors with regards to the prevailing business model. The economic challenge is that theoutput of the industry is not very profitable when compared to the input in terms of capital and labor. Over supply leads to multiple discounts, depreciation of prices and scrapping of vehicles. There is an inability to adjust to demand and difficulties because the market is not flexible. The main factor that leads to these problems is the change in market demand

The social problems include the fact that the manufacturing plants are massive hence they require large labor and capital investments. Environmentally, the toxicemissions lead to air pollution which is a large contribution to climate change, there is noise and visual pollution.

Once the industry makes a step on these burdens, it will be noted that they will be able to bring in new business models that are more appropriate for profitability. The industry needs to identify existing practices that are not bringing out any profits, there should be a unique creativity in the marketing strategies adopted so as to cater for all dimensions in terms of economic, social and environmental factors. With diversity and least cost lifetime user ship, there will be a burden reduction for both the society and the industry at large, leading to a more stable and approachable industry.

Challenges facing the UK automotive industry

Recently the production dominance by the UK has faced challenges from the market development and competition for other companies in the industry. The production levels produced by British are expected to record a gradual drop in volume due to exit from the EU by the UK.(Brown 2016 65) Producing companies have raised alarm concerning the operation tariffs, which, has made the various companies to shift ground of production to the West and other region closer to the consumers. The move aims to cut costs on the logistical costs such as transportation expenses. Companies such as Nissan and Toyota have warned against the possible cost of tariffs that threaten to make the cost of operation expensive in the UK.

The automotive industry provides employment for 814,000 individuals working directly for the companies or indirectly for firms that are associated with producing companies’ operations. Brexit creates uncertainty in the future of the automotive industry. Should the industry fall then the UK faces the challenge an increased 2.1% jobless individuals. Despite all the troubling news, the industry recorded a 7.2% growth in turnover and vehicle registration increased by 7.7%.(Anon, 2017) However, there are some sectors that are expected to benefit from the Brexit situation depending on the outcome of trade relations and activities in the region. Companies operating in London are expected to benefit the most from the rising completion created in services demanded by the customers.

The short and long-term effects of Brexit to the UK automotive industry

The EU privileges allowed for free trade movement in the European member states that included labor skill, export and import regulation. Brexit changed all this making trade in the region difficult with regulation on the trade being the main problem. The revenue received by the UK in tax and general income is expected to drop following the uncertain future of the employed population. (Bokus.com, 2017) explains the long term effect on the economic potential of the UK. The GDP in the UK as explained by the author of this work is expected to grow 4% slower than if it remains in the EU. Estimated growth by the year 2030 will not be at full potential considering all the slow growth of the GDP. Macroeconomics terms dictate that employment opportunities will be scarce with the drop in GDP levels. There have been short-term effects related with Brexit which volatility of the financial market. Results on this work obtained through brainstorming seminars by economists from various backgrounds contributing on the economic impact of Brexit. The research methodology applied to collect the data on this work

UK was among the countries that benefited the most from the EU have the advantage of operating the single market in the automotive industry. The author of this work explains that industries in the region that deal in the automotive industry will be the most affected with trade in the UK being dependent on the EU community. (Guild, 2016 128) explains that the social and political factors that promoted the automotive industry in the UK will be eroded caused by Brexit. While the other member states enjoy the benefits of unrestricted trade in Europe, UK has to deal with factors such as trade tariffs and restricted trade between boarders. For the first time, a member state has been witnessed to exit the single market community. The relationship between the UK and the EU will be influential in determining the impact of the exit on the UK. The UK will, however, have little political justification for exiting the trade community as explained by (Guild, 2016 pp.128) in her book based on the Norwegian theory that involves the economic area of trade. However given that the UK is a favourite among the members, flexibility in terms of trade provides an opportunity for UK to operate bilaterally with EU. The drawback to trading as a single state will be strained negotiation on the side of UK and compromise that brings along added costs. Information used to compile this research was obtained from interviews conducted by various economists and local organisational leaders. The limitation of this work is that the credibility of the information cannot be verified if it is true or not since the names of the interviewees are not provided.

The EU community has lost one of their most influential and liberalising members in the process of Brexit. The major challenge faced by the EU will be how to shift power on the leadership council and to prevent illiberal moves by other members. The UK now has the challenge of making an impression on the European market environment which may provide the needed completion for enhanced competition and friendly operating policies. (Brown2016 65) Despite the numerous challenges faced by the UK, the author of this work explains how the UK can succeed in the controversial environment with different opinions. London is still an international financial hub with chances of maintaining the position being highly possible because of extensive financial network and quality talent in the industry offered by the UK and is difficult to replace. However, UK has the challenge to perform well or risk losing most of its operations to Europe. The data

The implications of Brexit according to the author of this article are broad and not captured by most of the analysts. Among them is that there is uncertainty about the outcome of the referendum and the result after the referendum should the resulting force the UK to exit the EU. (SMMT, 2017)There is also the issue of political dynamics between the established states after the exit of the UK. The UK played a key role in harmonising the relationship between the states enhancing trade relations. (Irwin, 2017) Influence caused by the uncertainty of UK’s commitment to the EU market either positive or negative has brought political imbalance among the various member states in the EU market. Moreover, the influence that the UK holds over the member states in binding the member states will change with Germany and France being the most influenced. (Irwin, 2017) The relationship between these two countries may be cemented of could separate them as result of the UK’s absence, which threatens the future of the EU functionality. Tension may develop in other states over the Brexit success. The UK may develop independent market strategies and policies that eventually become successful. The EU community will eventually break following the member’s desire to emulate the success obtained by the UK in the establishment of an independent market operation and policies.

Countries such as the Netherlands and Ireland stand to be the most influenced by Brexit because of the strong financial ties that bind them with these countries and the alignment in their financial policies.(Brown 2016 pp.65) Germany stands to suffer the biggest loss from the Brexit without the UK to offer them support in policy debates. France is, however, receptive to the idea of Brexit because of reduced resistance, with Poland at limbo over interest on the impact of UK exiting the EU.

Social and Economic Impacts of Brexit

Recent developments on the advantages brought about by the exit of the UK from EU have been a question in the public domain and this research seeks to explain the effects. The EU has over the years provided the UK state with the upper hand on trade over the other member states. (Gilmanton, 2016 58-64) However, the UK made a decision through the referendum to exit the market to seek independence in trade and better opportunities that were available. Among the advantages that the UK are likely to have are:

Competitive Economy

The automotive industry contributes 4% of the U K economy with a GDP estimate of £60.5billion in value. The industry also provides job creation to a population of 700,000 people both local and foreign employees. 2003 UK produced 2.6million cars engines and 1.6million cars making it the second largest vehicle market globally and fourth place in car manufacturing. (SMMT 2017)The average value of vehicles exported had a balance of £70million with 77% in export. The automotive industry accounts for 10% of UK export in goods. Gross value added has significantly over the year with an average of £75,000 in 2010 compared to £40,000 in 1990. Comparing the productivity in the automotive industry in the EU, UK is the leading member with more than 2,350 production companies with the majority being small and medium level enterprise. (SMMT 2017) UK produces an assorted brand of vehicles including luxury and premium cars. Based on the production and level of investment in the country the UK has developed a competitive economy in the region that provides an advantage in external trading. The majority of the companies are investing more in these producing companies creating the much-needed competition in the UK reflecting £6 billion worth of investment in three years, according to the report released by an SMMT IN 2016. The UK provides unrivalled skill and talent that has is the need in the automotive industry there for making it very difficult for investors to seek investment in the foreign countries or EU market.

Manufacturing volumes

Competitors from the West and other regions have established new industrial plants closer to the consumer market in areas such as Russia, South America and Eastern Europe. Due to the extensive demand for cars globally the manufacturing companies have focused on economic unit manufacturing make the UK a favorite destination. Companies such as Nissan and Jaguar land rover have made their intentions clear on continued production in the UK. However, with the trade barriers in place, Britain remains subject to the foreign company controlling the market.

Industry migration

The UK is at a risk of losing one of the largest economic and revenue generators in its economy. Producing companies are transferring the operation closure to the market to cut on the cost incurred in production and transportation. The SMMT released a report that showed revenue decline in the automotive industry recorded at £45billion over the past year. The deterioration of the industry value can be speculated to record a decline in the revenue earned based on the opinion of economists and leadingorganisations CEO.

Unemployment; the car manufacturing industry and other related firms provide employment for 850,000 people in the UK. Britain’s exit from the EU has been key in the development of negative impacts that are currently affecting the automotive industry in the UK.

Performance of the UK automotive industry as a whole

The UK has over the years been a major beneficiary on the many car manufacturing plants in the industry. Some of these companies include Nissan, Toyota, Jaguar Land Rover and BMW. The industry has also created a chain of employment to 850,000 people both in the production sector and the supply of the finished goods. The automotive industry accounts for 10% of UK economy in trade value. (Automotive counsel 2015) The industry made a turnover of £60.5 billion. According to Mike Hawes, the CEO of the Society of Motor Manufacturers and Trade Limited (SMMT), the good performance of the industry can be attributed to UK’s membership in the European Union (EU). Single market access by the UK is imperative to the success of the engine and car manufacturers that make up the industry. (Automotive counsel 2015) Statistics produced by the SMMT indicate that 49% of the produced goods from the automotive industry are disposed of in the EU which is the world’s single largest market which is uninterrupted by trade tariffs and regulations.

Through the EU the UK has been able to export 50% of engine and vehicles produced to global markets despite the regulatory measures put in place by the various countries. The UK automotive industry has been subject to continuous growth in the past 6 years with 2015 depicting the highest growth since 2007. (Automotive counsel 2015) Car production rose by 3.6% (1.59million) while the commercial vehicle production grew to 33.65 in 2016, with the exports accounting for75.8% of the total production.

Moreover, the amount of carbon dioxide emitted by the vehicles has been reduced by 40% since 2000 with the amount of energy consumed having being reduced by half. Waste released from the manufacturing process to the environment has been reduced by 94.3% while the water usage has been cut by 50%. Since the year 2000 to 2015, carbon dioxide emission from new cars has been reduced by 2.6% on average making the cars more eco-friendly.

HISTORICAL PERFORMANCE

Performance indicator per car produced 2000 2015 Percentage change
Energy used(MWh/unit) 3.90 2.07 -47.1%
CO2 equivalent(tonnes) 1.10 0.65 -40.9%
Water used(m3/unit) 5.03 2.49q -53%
Waste to land (K/unit) 40.03 2.32 -94.3%

SOCIAL PERFORMANCE

  2000 2014 2015 %Change
No of jobs dependent on the sector 907,000 797,000 814,000 3.5
Combined no of employees 100,036 94,785 96,810 2.1
No of lost time incidents per 1000 employees 13.4 2.2 1.9 -13.1
No of training days per employee 3.8 2.8 2.9 5.3

ECONOMIC PERFORMANCE

  Units 2000 2014 2015 %change
Manufacturing turnover £billion 47.9 66.7 71.6 7.3%
Expenditure on business £billion 0.9 2.3 2.5 8.7%
Total no of vehicles produced Million 1.8 1.6 1.7 5.2%
Total new vehicles registered Million 2.5 2.8 3.1 7.7%
Signatories combined turnover £billion 21.0 69.9 65.0 -6.6%
Total number of vehicles produced Million 1.6 1.6 1.7 4.8%

Sunderland has been known to receive few tourists in the area with employment of the locals being dependent on three factories producing coal, shipbuilding and brewing and mining, however, with the arrival of Nissan plant in the area in 1986, the situation has changed. Nissan has evolved over the years to become the single largest UK’s leading car plant. Production of cars in the industry is dominated by Nissan with one in every three cars produced being a Nissan car. According to a report produced by the Automotive Logistics in December 2016 car production figure as at 2015 was 476,000 units with expectations of a growth in production in the subsequent years. The establishment of the Nissan plant has not only boosted the economic status of the area but also provided jobs for 6,700 people in the population with an additional 20,000 involved in the supply process of the finished products. Tyne port provides a passage export for the manufactured goods shipping an estimated370, 000 cars in 2015.

Several analysts have made an attempt to explain the macroeconomic effect of Brexit on the UK economy. Change in the market will mean a lower GDP to the UK environment compared which consequently may have to change the trade tradition in the automotive industry and other sectors of the economy. Statistics from the UK treasury indicate that the growth rate of the UK industry in the EU by the year 2030 will be at the rate of 30% as opposed to 24% after leaving the EU single market.

Reduced GDP reflects a drop in the employment opportunities in the market. The demand for the other EU member countries translate to a job creation of 3.3 million with a demand of 12% on the finished goods from the UK.

Analysis of two Companies in the industry

NISSAN

Nissan first established a base in the UK in the year 1986 by building a car manufacturing plant in Sunderland in the North-east part of the country where three industries were performing poorly and at the verge of collapsing. The first plant was built outside Japan with a starting workforce of 22 employees. 5,139 cars were the first production of the company in the starting year of the business. Progressively the car makes 10,000 cars in one week in its current production statistics according to the SMMT report on Nissan.

According to an article in the Auto Express magazine, the Nissan plant in the UK has the produced 500,000 cars in three years consistently making the plant the most productive plant in the whole of the UK.

Assets 2016 2015 2014
Cash and short term investment 992,155 802,725 836,335
Total receivables.NET 7,404,083 7,126,564 5,760,556
Total inventory 1,274,566 1,309,997 1,151,851
Other current assets 10,706,769 1,078,059 860,538
Total assets 10,747,573 10,317,345 8,609,278
Property plant and equipment 5,216,902 5,266,239 4,758,038
Intangibles.net 130,877 114,456 92,334
Long term investments 893,688 988,733 930,293
Other long-term assets 185,059 193,570 182,494
Total assets 1,7373,643 17,045,659 14,703,403
Accounts payables 1,479,689 1,554,399 1,511,910
Accrued expense 981,989 908,909 639,438
Short-term debt 1,537,146 1,223,305 857,751
Long term debt 1,723,800 1,616,765 1,169,974
Other current liabilities 1,041,555 1,114,117 954,176
Total current liabilities 6,764,187 6,417,495 5187,249
Deferred income tax 691,807 673,521 605,140
Total equity 4,721,767 4,836,710 4,341,055

Source; New York Times finance

TOYOTA

Toyota Motor Corporation of Japanese origin was established in the year 1937. Among the areas of specialisation of the company are design, sale, manufacture and assembling of vehicles in the automotive industry. Toyota is the eighth largest company in the world with global operations. (Nkombo 2015 pp.1)According to the Telegraph report, Toyota provides employment for 128,146 people in the UK. In 1965 Toyota set its first ever plant in the UK and to date, it has produced well over 3 million cars according to the Toyota UK official web page. Toyota operations in the UK is based on the philosophy of quality service to the customers. Toyota operates a car plant at Burnaston and another one for engines at Deeside North Wales where it has benefited with a £2billion worth of investments in technology skilled labour and infrastructure. (Media.toyota.co.uk, 2017)

However, with reference to Brexit, the future of Toyota in the UK is in uncertain due to the possible change of article 50 of the constitution which threatens to impose high tariffs on the manufacturing plants in the UK automotive industry.

Assets 2016 2015 2014
Cash and short term investment 363,173 339,608 323,1650
Total receivables 277,011 261,748 242,844
Total inventory 197,201 194,839 135,813
Other current assets 419,841 148,709 872,058
Total current assets 1,257,226 944,901 626,114
Property plant and equipment 781,751 707,532 100,814
Goodwill 93,234 96,717 90,068
Long-term investment 1,945,123 2,735,006 2,049,838
Other long term assets 23,058 24,238 44,833
Total assets 4,199,196 4,650,896 3,799,010
Accrued payment 214,162 205,816 196,904
Unrealised gain 644 626 619
Short term debts 0 55,369 76,648
Long term debts 232,254 137,085 140,717
Other current liabilities 226,576 254,291 248,645
Additional paid in capital 673,636 653,187 663,353
Deferred tax 500,077 737,268 567,859
Total shareholder equity 4,199,196 4,650,896 3,799,010

Trends in the Automotive Industry in the UK

Due to the dynamic nature of the automotive industry, the stakeholder has been prompted to make changes on products and the production methods to keep up with market trends and stay in business. Some of the factors causing a change in the market include the evolving technology, environmental policies concerning carbon dioxide emission and consumer demand preference.

Distribution Model

According to an article by Parkin, Wilk, Hirsh and Singh, the distribution process cost 15% of the total expenditure but varies depending on the various countries and terms of operation in different industries. However, the original equipment manufacturers have shown interest in the European market but are faced with the challenge of strict regulation rules from the different territories.(McKinsey & Company, 2017) Changes in the supply chain aim to cut on the cost incurred in the distribution process and establishment of more economical channels that could be used in the distribution process to the buyers, which, has involved the use of technology to keep a record of inventory. Companies make profits by making online sales as opposed to many retail outlets in the various regions of sale. Car buyers have the advantage of visiting either one of two dealers before buying a car as oppose to more than five dealers in the past. Reduction in the distribution chain has been made possible through the use of the web to research and make purchases. The car companies are kept up to date on the customers’ taste and preference and avail the vehicles as required by the buyers. However, the success of the suppliers depends on the how they position themselves on the distribution chain. Regardless of the end product, the suppliers need to position themselves at the most profitable part which involves maximum minimising of costs.

Use of Technology Skilled Labour

Several automotive companies apply the use of new technology developments to fulfil their buyer’s demand. Technology application ranges from the development of machine interface to electrification of the manufactured cars.(McKinsey & Company, 2017) Original equipment manufacturers control the features they hand over to the industry developers for better boost and modification by the experts in the technological field. Companies such as BMW which has a capital base venture in SiliconValley and Toyota has in the past partnered with Microsoft.

Consumer mobility

Customer demand, taste and preference are getting more advanced by the day and the regulations put in place are becoming stricter hence the dynamic nature of the technology put in place by the manufacturing companies to keep up with the market.(McKinsey & Company, 2017) Because most the most transport used by individuals is fast-changing and diverse, car manufacturers have conformed to delivering the purchased cars as opposed to the traditional way where the buyer had to fetch from the dealer retail outlet. The resultant effect is that demand mobility solutions are being highly implemented mores in the urban population where there is great demand for cars.

Future Trends in the Industry

Feature Upgrades

According to an article by McKinsey&Company, there would be a growth in the automotive sector considering the demand for mobility services and data services. Connectivity and improved technology will allow for the drivers and passengers to have a platform where they can interact and engage in personal activities. Cars manufacturers will be required to upgrade the car systems in future considering that significant progress has been made the software development. Customers will be on the lookout for new development in the market and constantly demanding for upgrades for the privately owned vehicles. The global car sale is expected to grow but the borders annual sales may drop. Macroeconomic factors, increased use of mobility services have been said to the reason behind the slow annual sales in the future. Positive economic development such as increased middle-class consumption has cited as some of the growth factors that will contribute to the continuity in the automotive industry. However, the mobility services have raised concerns in the considering factors of the shared cars that reduce on the private car purchase.

Technological and Regulatory Issues

Autonomous vehicles are likely to be available in the market before the year 2020. New development on the advanced driver assistance system (ADAS) will be imperative in the development and regulation of buyers and organisations for the short term period when the human drivers will be substitute by the self-driving cars.(Strategyand.pwc.com, 2017) The main challenge of the fully automated self-driven cars has been pricing, customer familiarity with the new changes and security matters. Once the obstacles have been sorted then adoption of the vehicles will provide the customers with exceptional value and satisfaction. Advantages such as the freedom to use the social media, make calls and read novels while travelling are expected to be the climax of the innovation.

Electric Cars

The invention of the electric cars have been put in place to reduce the environmental pollution by carbon dioxide emitting vehicles. Stern regulations on the emissions lower the expenditure on battery due to the availability of charging centers available for use by the car owners. Market penetration will be greatly influenced by consumer acceptance of the electric cars in the future. Ownership of these cars will be determined by the cost of ownership and the responsibilities that come with the cars. Future expectations are that 10% to 50% of the cars sold will be the electric cars with the highest sales in cities with strict regulations on emissions.(Strategyand.pwc.com, 2017) Improvements made on the electric cars are expected to make the use of the electric vehicles less expensive. McKinsey&company explain that cost are expected to drop$150 to $200 per kilowatt.

Rolls Royce Assessment

Over the past 20 months the Rolls Royce automakers have been make subsequent losses with the latest estimation being a pre-tax loss of 4.6 billion in the year 2016. However, the main cause of the loss made and the biggest in the history of the company was caused by a corruption scandal that hit the company. According to (Ruddick, 2017) the company had agreed to pay £671 million for the settlement of the case inclusive of other penalties mentioned on the case. (Ruddick, 2017)  Rolls Royce is alleged to have used bribery in order to acquire contracts that allowed them to make exports to other countries on the goods produced. Payment of the £671 to some extent provides assurance to the company about evasion of legal prosecution by the state. Rolls Royce, however, made it clear that they were willing to make a settlement worth £497 million payable to the United Kingdom Serious Fraud Office (SFO) which was to be approved by the court and another $140 to the department of Justice of the USA with an additional $25 million to Brazil.(Evans, Peggy and Watt, 2017) Despite all the allegations and fine penalties to be paid, the company CEO Warren East emphasised that the company was stable and had room for improvement saying it was a book keeping measure of the business. The company was however forced to cut down on its currency hedges valued at £30 billion. (Kollewe, 2017)

The other reason why the Rolls Royce Company faced economic difficulties was due to the reduction in currency value by almost by a fifth of the pound used for trading. (Ruddick, 2017)As such the company has experienced a reduction in the value of it assets and general value of the market.

Measures Put in Place by Rolls Royce Company CEO

The company CEO Warren East has been reported to plan trading strategies that are tailored towards the development of the company to enable it break even and recover the losses made in the subsequent years.The development agenda aims at making the close of the first months break even and profits are expected to increase due to the increase in the number of engine deliveries with more income coming from services made in repair of the sold engines. Based on the performance of the second quarter of operation in the past year Rolls Royce s expected to make more profits in the second quarter of the current period.

Among of he challenges faced by the Rolls Royce Company are inflated prices of oil, reduced demand in the products such as the engines used in the aircrafts, cut in the defence budget by the state and drop in demand of the goods produced. (Evans, Peggy and Watt, 2017) explains that, Rolls Royce having been the manufacturer of engines used in the Airbus A380 and Jumbo jets, have made it clear they are able and willing to deliver towards the cost saving venture valued at a range of £30 to£50 a year. (Evans, Peggy and Watt, 2017)  The company also announced their plans to employ an additional 350 employees in the Derby plant to help in production efficiency.

Analysis of the Pension Fund 0n Jaguar Land Rover and Rolls Royce

Based on the financial performance of the Rolls Royce past, an increasing the pension fund towards the company may go a long way in the establishment and development of greater achievements in for the company. Considering that the company was involved in bribery scandals, the reputation of the Rolls Royce Company is at stake making it dangerous to inject funds into a company that may eventually collapse. However, based on the political advantage that Rolls Royce has, survival in the industry is almost certain.

The jaguar land rover company planned to make cuts on the pension funds for all workers. This resolution was made as an attempt to save jobs for its workers. The economic stagnation was seen as a huge blow for the manufacturing industries including the Jaguar Land rover.

Due to the economic down turn, Jaguar Land Rover Company viewed it necessary to merge the plant operations, at Castle Bromwich that was responsible for over 2000 workers and the plant at Solihull that stands for over 4000 employees, in the next ten years, and also decide which plant to close (Ruddick, 2017). Other resolutions also include restructure of the pension schemes and outsourcing manufacturing to the upcoming markets.

But the workers unions shunned these strategies claiming that the management team was the biggest liability to the car industry. The plans, however, may create 800 new jobs for the residents of Halewood, Merseyside for purposes of the production of the baby range rover(Ruddick, 2017). The chief executive of the jaguar land rover; Mr. David Smith, said that the plan would recognize the impact of the downturn and explore the chances that lay ahead.

 

 

 

 

 

The jaguar land rover is believed to make the decision to cut the pension of its workers and also ending links to final salaries. This move is not much of a shock because the company is not the first in UK to make the move to reduce retirement benefits. The carmaker wishes to cut down millions of pounds from the £7.1bn pension fund, currently in deficit, and whose future payout contributions are linked to normal work earnings and not a final. This move made by one of Britain’s biggest carmaker industries shows the challenges faced by companies with pension schemes especially in the event where interest rates remain low leading to funding holes.

The option that is being picked up by most sectors is to remove the “defined benefit schemes” that guaranteed a level of income in retirement and replacing them with less generous arrangements where the employees bear the risk of investments.

THE JAGUAR LANDROVER PENSION SCHEME.

The jaguar land rover company planned to make cuts on the pension funds for all workers. This resolution was made as an attempt to save jobs for its workers. The economic stagnation was seen as a huge blow for the manufacturing industries including the Jaguar Land rover.

Due to the economic down turn, Jaguar Land Rover Company viewed it necessary to merge the plant operations, at Castle Bromwich that was responsible for over 2000 workers and the plant at Solihull that stands for over 4000 employees, in the next ten years, and also decide which plant to close (Ruddick, 2017). Other resolutions also include restructure of the pension schemes and outsourcing manufacturing to the upcoming markets.

However, the workers unions shunned these strategies claiming that the management team was the biggest liability to the car industry. The plans, however, may create 800 new jobs for the residents of Hale wood, Merseyside for purposes of the production of the baby range rover (Ruddick, 2017). The chief executive of the jaguar land rover; Mr. David Smith, said that the plan would recognize the impact of the downturn and explore the chances that lay ahead.

Jaguar Land Rover is believed to have made the decision to cut the pension of its workers and also ending links to final salaries. This move is not much of a shock because the company is not the first in UK to make the move to reduce retirement benefits. The carmaker wishes to cut down millions of pounds from the £7.1bn pension fund, currently in deficit, and whose future payout contributions are linked to normal work earnings and not a final. This move made by one of Britain’s biggest carmaker industries shows the challenges faced by companies with pension schemes especially in the event where interest rates remain low leading to funding holes.

The option that is being picked up by most sectors is to remove the “defined benefit schemes” that guaranteed a level of income in retirement and replacing them with less generous arrangements where the employees bear the risk of investments.

According to the financial times, the Jaguar Land rover annual report, the previous pension cost the Indian conglomerate Tata firm £224m while £3bn was spent annually on product and capital investment(Ft.com, 2017). These amount is expected to fall because production lines for Minis and Rolls-Royce cars, from, BMW British factories, faced disruption because of employees who threatened to down tools in case the decision to alter the benefit scheme pushed forward. The employees also threatened the Royal mail to carry out an industrial action. Tata steel however was given a go ahead to shut a £15bn defined benefit scheme after workers finally accepted its closure.

Jaguar land rover has a workforce of about 42,000. Long-serving employees are members of the defined scheme, which dates back to workers from 2010, but the benefits already settled from the final salary arrangement would not be affected. The deficit in the pension fund was close to £567m in the financial year ended March 31 2016(Ft.com, 2017). As such the Jaguar land rover hopes to establish a packet of changes and at the same time maintain defined benefit provision for active members.

Rolls Royce Pension

According to an article in the financial time the Rolls Royce Company has a plan under way that will boost retirement benefits for 86,000 (Ft.com 2017) employees in the future. However, his follows after the company leadership settled on a decision to cut funding for the pension fund for reasons such as financial crisis and the poor performance of the company in the recent past. Some of the businesses trade unions and other business have recently raised concerns to the government to establish rules that ensure the various companies in the industry keep their word on delivery of the pension to the millions of employees.

Brexit vote has affected the operation and contribution of the pension fund by employers after the drop in bond value. Where payment of the bonds is dependent on the salaries inflation in the market has affected the payment of pension with most companies including Rolls Royce finding it a burdening.

Among the British companies in the FTSE 100 Roll Royce became another statistic of the companies seeking to increase their pension fund contribution with a sum total of £500 million annually (Milner 2006). However, in return the company seeks to end the final salary for the new employees in return for the additional contributions made to the fund. The strategy is to minimize of the long term expenditure which is bound to save the company financially in future. The company through the guardian website seeks to solve the problem of a deficit valued at £1.28 billion in its schemes. (Milner 2006). The company gave an explanation that it intended to provide competitive and economical pension to its employees.

The year 2003, Rolls Royce had a concluding deal with its employees after a series of strikes that meant the company would increase pension payments by 50% towards the good will of the workers and a decrement of 8% of the employees’ benefits.(Milner 2017) Rolls Royce and other companies in the British industry are finding a hard time to cope with longer life expectancy of its employees which means more costs will be incurred from the company. (Milner 2017) explains that Rolls Royce has 120,000 individuals on its pension fund, which translates to £1 billion in the case that 1% reduction in discounts is considered.

 

 

Conceptual Framework and Conclusion

THE AUTOMOTIVE INDUSTRY

FEATURES

ECONOMIC IMPACTS

 

 

BREXIT

EFFECTS OF BREXIT

THE EU
UK
MARKET DESTINATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

The literature reviewed in this work has been used to explain how the UK automotive industry operates in the EU and the possible outcome of the Brexit to the UK economy. Factors such as employment and the market relations has also been explained. Here in also is the performance of the industry over the years and the type of cars produced. The UK has been subject to more economists and CEOs who have shown interests and advised on the way forward concerning the UK automotive industry after the exit from the EU single market. Production has been expected to reduce over time but some of the professionals hold hope that good performance of the industry is possible but will take a lot of sacrifices from all the stakeholders in the industry.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE

RESEARCH METHODOLOGY

The purpose of this chapter was to explore the research methods that the researcher employed to conduct the study and achieve the objectives of the question. The chapter starts by discussing the suitable research design and how the researcher came to the most suitable design to be used with regards to the philosophical beliefs related to the thesis. The data collection methods used are also discussed in detail. Before the conclusion of this chapter, the researcher also handles the analysis methods used, their validity and ethical concerns adhered to in the research.

RESEARCH DESIGN

The researcher opted to use a mixed research design by combining the descriptive and the exploratory research design in this study to answer the research question. The most commonly known types of research designs include; descriptive, exploratory, historical and experimental research designs (Libguides.usc.edu, 2017). Exploratory designs are used to evaluate problems that have few or no previous research; the purpose of the study is to gain familiarity with the issue, generate new theories and give future studies. Descriptive designs on the other hand answer to the five W’s; what, why, where who and how. They are useful for providing information on the current existences on the arising issue. Experimental designs, just as the name suggests, try to predict an occurrence and in most cases, the researcher has a say on the outcome and factors that are bound to arise. Historical design help to discuss past experiences with regards to the present, so as to stand with or against an issue. They get their evidence from secondary sources such as non-textual documentaries and records.

The researcher opted to use both the descriptive research design and the exploratory design to ensure that the weaknesses of one idea would be countered by the other. As such, the researcher would come up with a strong analysis that describes the situation and its impacts, at the same time formulating a map from which future studies can pick reference for their works. With the exploratory design, the researcher also ensures that, as this is a new problem facing the automotive industry, the analysis made is without bias made from conclusions of previous occurrences.

Research Method

The researcher employed both qualitative and quantitative methods to collect data in this study. By using both methods; the researcher increased the efficiency of the study as there is a middle ground in terms of the weaknesses and strengths of both methods from each other. The nature of the research and the designs employed forced for the adoption of both methods.

The Population of the Study

The population of this study comprised of the shareholders and the stakeholders of the automotive industry. A few statistics were also collected from the government bodies to show the rate of sales and the impact of the industry to the economy currently and before.

Data Collection

The data used in the study was collected between June 2016 and December 2016, at the rise of speculations of Brexit. Interviews were conducted and questionnaires were filled by the employees and residents affected by the future uncertainty of the industry. Secondary data was also used from the literature review and different government bodies in the UK.

Interviews

The interviews carried out in this study were conducted with the top management of the automotive industry including Managers from different companies. The main focus of these interviews was to analyse the impact of the issue of Brexit on the automotive industries, to show how a convergent type of manufacturing of cars was affecting the industry and to see if there was a possibility of diversifying the types of cars produced so as to ensure they are affordable to all clients.

Questionnaires

The questionnaires used were both structured and open. The aim of the questionnaires was to find out the knowledge that people had of the automotive industries, the impact of Brexit on the industries and the residents and employees’ opinions on the best way forward. The criteria for selection of the participants of the survey was a purposive but random selection. The selection was preferred because it enabled the researcher to locate the most suitable participants to the research without living any party out. The volunteers also took part in an online survey

The following questions were contained in the survey.

Are you content with the Brexit decision?

Yes (a)

No (b)

How is the UK automotive industry expected to relate with EU market?

Better (a)

Uncertain (b)

How dothe quality of cars produced in the UK automotive industry compare with other industries?

Bad (a)

Can do better (b)

Good (c)

Would you advise investment into the UK automotive industry?

Yes (a)

No (b)

Maybe (c)

Will Brexit affect the employment levels of the UK?

Yes (a)

No (b)

Is the UK automotive industry the main source of employment to the UK population?

Yes (a)

No (b)

How is the UK expected to perform out of the EU market?

Better (a)

Poorly (a)

Should the manufacturing plants move their factories out of the UK?

Yes (a)

No (b)

Data Analysis

Due to the fact that both qualitative and quantitative methods of data collection were used, the researcher adopted various techniques to analyse the data. The thematic analysis was used for the qualitative data obtained. This is because it is effective in delivering the key points for the study that are acquired from the research. The quantitative data used was analysed using the Statistical Package for Social Sciences (SPSS), where data was fed in and the output was descriptive statistics. Through an analysis of both qualitative and quantitative findings, the researcher was able to cover all important points in the research problem.

Data Reliability

Data validity and reliability was ensured by employing all instruments of collection and analysis alongside the existing knowledge of the topic. To ensure that the data collected was valid, the participants of the survey aged no less than 18 years and had at least six months experience in the industry. The genders were represented at a 40-60 ratio because most of the volunteer participants were male.

The data collected was considered reliable because the researcher sent back the data to the participants for confirmation before the processing step began

Research Ethics and Concerns

The researcher worked within the set guidelines of research ethics to ensure that the participants were not forced into taking the survey, their privacy was respected and there was no chance that the participants would come to risk.

To ensure that the all the participants of the interviews and questionnaires had informed consent, the researcher made a letter of consent that highlighted, in brief, the study, the reason for the study, what the research aimed to achieve and the importance of the findings of the study. Hence, the participants had a clear understanding of what the survey was about. All individual participate willingly without being forced.

The confidentiality and anonymity of the participants were also well protected. Private details that the participants gave by choice were in both soft and hard copy. The hardcopy documents sealed and stored in a location known by the researcher alone. All softcopy details were stored in password protected files to avoid them from being accessed by third parties for purposes of security.

All interviews and surveys that involved direct meetings or sit-ins with the participants were carried out at a location chosen by the participant, to ensure they came to no harm. Dealing with individuals within their own safe zones makes it easy to keep them from danger.

Having adhered to all ethical concerns, the data collected and results obtained can be said to be credible.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER FOUR

RESULTS AND DISCUSSIONS

The main objective of this research was to find out the situation of the automotive industry and impact of Brexit on the UK automotive industry. The purpose of this chapter is important as it seeks to give an informative interpretation of the research results.

The study came up with multiple questions that could help show the impact of Brexit on the automotive industry. It also showed diverse attitudes of the residents around these industries and also those of the clients that had purchased the vehicles. All the questions that were asked during the survey came up with varying answers. The sample of the participants who took part in the survey were 200 in number, a third of them being women.

During the survey it was clear that there was a number of age groups in terms of work experience. The attitudes and opinions given were also varied. The employees who had been employed for less than 30 years showed enthusiasm in terms of changes to be made, while the employees above the ladder preferred to stick to old means hoping things would pick up on their own as it was too late. The most common age group comprised of individuals who had been employed for a period of six months to 30 years. All employees were above 18 years of age.

DISCUSSION OF RESULTS

Satisfaction with the Brexit decision

From the survey carried out, 35% of the employees were satisfied with the Brexit decision, 15% of them were neutral as they highlighted both pros and cons of the move, none exceeding the other. 50% of the employees, however, were not satisfied with the decision.

The 70 individuals who were satisfied with the Brexit decision said they had confidence in the UK single market other than the EU that seemed to limit how far they could explore. With their own regulations and terms of trade, the people operating the industry will be able to determine the prices of their automotive and control taxation. With the implementation of the single market, UK is expected to save more because the funds that previously went to EU would now be put into the country reserves. This move would ensure presence of capital to fund different projects in the industry once the market picks. The single market is also expected to provide more slots of employment for graduates in the country.

15% of the respondents were unable to clearly pick a side. They saw the move as both advantageous and disadvantageous while a few had no idea of the implications that would follow after.

50% of the interviewees claimed leaving the EU was a bad idea. Given that the EU provides the greatest market for the goods produced in the UK, some of the locals felt that the move would deny the UK manufactures a chance to trade and thereby make loses. Employment in the regions with manufacturing plants would also be negatively affected as a results of the manufacturing companies facing the threat of elimination from the UK automotive industry with no market to sell the finished goods and the expected high rise of the tariffs imposed on the good produces

RELATIONSHIP BETWEEN THE UK AND THE EU MARKETS

47% of the people interviewed felt the need to establish a well-defined and working structural plan that will enhance the trade terms between the UK and the EU with the motive to sustain the working population and keep the companies in business.  However some of the people were for the opinion the UK should have an independent market from the EU since the European countries depend on UK for most of the cars they use in their operations.UK was there for viewed as a superior when it come to the operation of the automotive industry by the remaining 53% of the interviewed population.

Investment Options in theUK Automotive Industry

Among those interviewed, individuals’ opinion on whether they could invest or advise other people to invest in the UK automotive industry was asked and 60% of the UK locals had confidence in the industryshowing a great interest to invest or become partners in the industry. However, the challenge was that investments required huge investment capital which most of the mid-level and low level earners could not afford hence fewer people investing in the business.

The remaining 40% of the population felt it as a risky investment plan to make since the Brexit had caused uncertainty over the future of the industry, which caused speculation over the possible exit o some of the manufacturers such as the Japanese producing firm Nissan. Among the 40% of the opinion, some of the individuals also raised concerns over the capital required to start and run the companies. The issue of high competition with other countries was also raised by some of the people interested in making investments in the industry either as direct or indirect producers.

The Automotive industry as a source of employment

From the survey, 20% of the respondents were fully dependent on the industry as a source of employment, this category was made up of the individuals who had more work experience, with their jobs being terminated, it would be hard to secure new places of employment. Hence they fully invested their time to ensure the industry would go back to being fully operational

The remaining 80% of the respondents claimed that as much as the industry was a source of employment, it was not the only source of employment and they could rely on education, tourism and sports for employment.

CHAPTER FIVE

RECOMMENDATION AND CONCLUSION

The UK automotive industry has clearly been facing challenges of market sustainabilityin terms of profits and customer preference. These uncertainties seem to have escalated with the move made by Britain to exit the EU. There are questions that have risen pertaining the work regulations, the foreign manufacturing industries planted in the UK, the probability of these firms being moved and the impact of the step on the economy of the UK.

The extent to which Brexit may affect the UK automotive industry is certain however. The future of trade possibilities among different countries is at a hard place with the economists. Various company CEOs have expressed varied opinions on the matter. Some of the short term impacts that were highlighted include; unemployment due to retrenchment of workers, reduced production, increased government incentives and high production tariffs for the producers.

The benefits of the UK automotive industries can be seen in many areas. There is a constant growth in terms of diversity of the cars produced. The UK automotive industry produces a wide range of vehicles for both the public and private sectors. These cars produced, however, are influenced by the government policies concerning the ecological impacts of the toxic emissions produced by the vehicles. The regulations differ in different states.

The positive impacts of the implemented policies include the push for development of cars that cut on fuel consumption, and to a great extent, the original manufacturers have developed electric cars that have lessened the emission of toxic substances into the atmosphere. Moreover, these cars have been viewed as the future of the automotive industry because petroleum crises are becoming a threat to the industry. On the other hand, the electric cars have faced criticism from targeted users because these cars are expensive and there is a technicality in terms of charging these vehicles

Competition in the industry is very stiff. There are different companies producing more advance and quality cars in the market. Despite the competitive edge, there are companies such as Toyota, who have proved dominance in the industry by being the largest producer of different types of cars to favour all clients in the industry. Other companies also have a chance to win clients because of the growing demand for vehicles and customer preference for specific brands. In order to improve their competitive edge companies need to find a unique angle that is not found in other products. The reason being clients are attracted to quality and uniqueness depending on individual taste.

RECOMMENDATIONS

From the study, the researcher came up with a few recommendations that would help reduce the uncertainty of the future of automotive industry. From the study, the researcher observed that the automotive industry was bound to have a difference in performance compared to the subsequent years considering the fact that the EU single market contributed to the UK as it was the destination for about 70% of the end products from UK.

Some of the recommendations that the researcher came up with include:

The government and company treaties- the UK government in response to the Brexit will have to sit down with all the industry stakeholders and negotiate new terms of trade. These terms will ensure that job opportunities for the residents will be a top priority asideproduction. In return the companies get to have subsidized productions, hence cutting on cost and increasing on profits.

Product distinction- UK has over the years built a reputation for building superior and quality machines. Based on these, any additional features that will improve quality will ensure that cars produced in the UK will go a long way in creating demand.

Relations with the EU- the UK should consider negotiating terms of trade with remaining countries in the EU to ensure that their end products are exported to these countries for purposes of revenue.

Shift of market- if the market shows signs of falling, it would be advisable for the UK to find a new investment so as to ensure no amount of loss is incurred by individual companies.

For further studies, the researcher recommends an in-depth analysis of the impact of the exit from EU by Britain and other countries in the UK, the competition between the manufacturing plants in the UK and other countries and the possible new ideas in case there is any need to shift markets.

 

 

 

 

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