Motor industry says it is struggling to find staff

Businesses which supply parts to the car industry, have said that despite the recovery of the sector, not enough people are interested in hi-tech careers.

Zircotec in Abingdon produces specialised heat resistant coatings for engine parts used by Formula 1 but it said it was finding it difficult to recruit staff.

Motorsport firm Prodrive in Banbury has similar problems getting the highly skilled engineers it needs.

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BMW to invest £500m in UK factories

BMW has announced a plan to invest £500m in UK car production over the next three years.

The money will help fund the production of the next generation Mini in the UK, safeguarding more than 5,000 jobs.

BMW's investment plan is the second major boost to the UK's motor manufacturing industry this week.

Its announcement came the day after Nissan said it would invest £192m and safeguard 6,000 jobs by building its next generation Qashqai here.

BMW's main facilities are its vehicle assembly plant in Oxford, the pressings plant in Swindon and the company's engine plant at Hams Hall near Birmingham.

The motor industry produces the country's most valuable manufactured exports, with £27bn worth of vehicles and parts going overseas in 2010.

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Changed landscape for global carmakers

The earthquake that hit Japan on 11 March, causing a tsunami and a nuclear crisis, did more than rock the country. Japan's motor industry was also shaken badly, with many of its parts suppliers hit.

A warning by the country's leading car-maker, Toyota, that parts shortages could curb output this year, coincided with booming sales and profits at its main global rival, General Motors (GM).

GM has just announced it is planning to invest $2bn (£1.2bn) in plants in eight US states, as well as creating hundreds of jobs. Fellow US car-maker Ford has also reported bumper profits and sales. And even the country's third-largest automotive company, Chrysler, is back in the black.

Less than two years ago, GM and Chrysler filed for bankruptcy and were bailed out by US taxpayers, while Ford had to sell its luxury division, which included Jaguar, Land Rover and Volvo cars. At the time, Toyota and the other Japanese car-makers were gaining ground in the troubled Detroit-based companies' home market.

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Ford sees best profit in 13 years on green car sales

Ford has unveiled its strongest first quarter profits for 13 years, helped by increasing demand for more fuel-efficient cars.

Profits rose to $2.55bn (£1.54bn; 1.75bn euros) in the first three months of 2011, compared with $2.09bn at the same period the year before.

"Our team delivered a great quarter, with solid growth in all regions," said Ford president Alan Mulally. Ford said the 2011 outlook was good, despite higher commodity costs. Revenue for the first quarter was $33.1bn, up from $28.1bn a year earlier.

The firm said it had seen a strong performance in its home North American market, as well as "solid improvement" in Europe. US sales were up 16%, while market share in the Asia Pacific and Africa regions also increased, the carmaker said.

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Vauxhall plant in Luton secured by Vivaro decision

The future of the Vauxhall plant in Luton has been secured after a decision was made to build the new Vivaro van at the UK site.

It had been feared that the site would close in the next few years. The union said the decision, which will safeguard 1,100 jobs, was "fantastic" news.

Owner Vauxhall, the UK arm of General Motors, said the site would continue to play an "important role" in its manufacturing network. An existing contract between Vauxhall and French counterpart Renault to use the site had been due to run out in 2013.

The decision to continue production at Luton comes after the two car companies agreed last September to extend their collaboration on light commercial vehicle manufacturing, which first began in 1996.

Meanwhile, production of Renault's new Trafic van - also a product of the two firms' partnership - as well as the high-roof Vivaro will be at Renault's Sandouille plant in Normandy.

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source: BBC