Research

Since its inception in 1991, CAIR has followed a distinct strategy of developing a number of key research areas. Although CAIR is keen to maintain its general overview of the world automotive sector, developing specific expertise in a number of these key strategic areas has helped enhance CAIR's worldwide reputation and competitiveness. The CAIR research streams are:

Economic Impacts of the Motor Industry
Relationships between manufacturing and markets
Sustainability and Personal Transport
Future of Car Body Materials
UK Motor sport and design engineering sector

ECONOMIC IMPACTS OF THE MOTOR INDUSTRY

Economies of scale
The economic impacts area was built on the foundation of the pioneering work by Professor D G Rhys MBE, dating back to the 1960s and 1970s. Prof Rhys' early work on economies of scale in the motor industry has become an industry standard and is still regularly cited. He was also among the first to argue that while lean practices made early pioneers like Toyota more competitive, it did not in any way remove the pressure of economies of scale. Recent history has borne this out.

This is closely related to the continuous consolidation in the industry as manufacturers seek to recapture economies of scale lost through product differentiation via global models and global platforms. This raises the issue of brand integrity, as well as that of the survival of smaller firms. CAIR has carried out much work in this area, both in cars and trucks, where the issues are slightly different due to different technology choices.

Also under this heading is some of the historical work on the introduction of mass production to the car industry which current CAIR directors Drs Nieuwenhuis and Wells have carried out over the past decade or so. This is beginning to prompt a worldwide reappraisal of the role of Ford in the early history of mass car production.

MANUFACTURING AND MARKETS

Future of car and truck retailing
Micro Factory Retailing (MFR)
Nearly new cars
New and used car shipping
Worldwide trade in used cars
Clients in this area have included dealer groups, financial institutions, and leading daily rental firms. In 1995 CAIR members Peter Wells, Paul Nieuwenhuis and Garel Rhys researched and wrote the influential publication by The Economist Research Unit (EIU) The Future of Car Retailing in Western Europe. This work has been followed up by several minor studies for individual clients, as well as Professor Rhys' input in the Monopoly Commission report on car pricing in 1999 and 2000.

Shortly after the EIU study, CAIR members Peter Wells and Paul Nieuwenhuis produced a study analysing the role of the daily rental sector in determining residual values. The research showed its role to be less important than generally assumed up to that point. The report was published by CAIR.

In 1999, CAIR members Paul Nieuwenhuis and Peter Wells joined forces with then Maritime Studies members Peter Marlow and Anthony Beresford for a major study into the trade and shipping of used cars around the world. Field research was carried out in Japan, Korea, New Zealand, US, Norway and several EU countries. The work was carried out for a shipping company and has since seen partial release into the public domain, gathering much interest in shipping and logistics circles. This work become a research strand in its own right with regular updates and a number of publications. CAIR maintains links with experts in key markets involved in this trade to allow on the ground research.

CAIR's most novel idea in this area so far is Micro Factory Retailing. This combines CAIR's work in retailing and manufacturing with its sustainable business models work. MFR presupposes the abandoning of the current 'Buddist' paradigm as set out in the book The Death of Motoring? (1997) and The Automotive Industry and the Environment (2003) (see Key Publications). A subsequent car making model could involve a devolved network of small local car assemblers/retailers, or Micro Factories, which would source key components globally, with tailored local sourcing to assemble vehicles attuned to local tastes and conditions. MFR sites would make, sell, service, repair, modify, upgrade, sell used and deal with end-of-live vehicles (ELVs). The MFR concept is currently being developed in more detail, including at Cranfield University and Delft University of Technology in the Netherlands.

We are currently working with two key players in the car industry keen to develop this concept. Much of this work is now carried on under the aegis of BRASS.

SUSTAINABILITY AND PERSONAL TRANSPORT

Towards a sustainable car industry
Alternative Personal Transport
Alternative fuels and powertrain
Environmental ratings for cars
End of Life Vehicle issues
Product durability and the long life car
Product stewardship
Corporate social responsibility in the automotive industry
CAIR members identified the environment and sustainable development as key strategic issues for the automotive sector at an early stage. Paul Nieuwenhuis co-authored The Green Car Guide, published in 1992, which proved influential. This helped establish CAIR as a leader in the field of car and environment. Subsequent work has built on this, notably Motor Vehicles in the Environment (1994), The Death of Motoring?(1997), The Automotive Industry and the Environment (2003) and The Business of Sustainable Mobility (2006). CAIR members now have a number of academic publications in this area, as well as conference papers and dissemination to user groups via articles in a wide range of publications such as the FT, later AW Automotive Environment Analyst and even consumer magazines such as Diesel Car.

CAIR has always taken a broad, 'holistic' view of car and environment, moving beyond the narrow focus on emissions which long dominated the debate. This put them ahead of the field, tackling issues such as product durability, life cycle analysis, industrial ecology, as well as wider issues of corporate social responsibility. This broad view allowed the development of a uniquely robust environmental rating system for cars. In 2007 this was developed further by CAIR and BRASS in partnership with consultancy firm Clifford-Thames as the ERV (environmental rating system for vehicles), which has been adopted by a number of users, notably the BVRLA (British Vehicle Rental and Leasing Association). This joint venture won for CAIR and BRASS a 'Highly Commended' in the 2008 Cardiff Innovation Awards.

CAIR was also able to accommodate the incorporation of end of life vehicle (ELV) issues from an early stage, as well as being invited to join the prestigious Road Traffic Advisor project funded under the UK government's Foresight Vehicle and Innovative Manufacturing Initiative. CAIR member Paul Nieuwenhuis was invited to join the Innovative Manufacturing Initiative (Land Transport) Steering Group and later the Foresight Vehicle Steering Committee. In addition, both Prof Garel Rhys and Dr Paul Nieuwenhuis have contributed to the UK Round Table on Sustainable Development. The expertise established in this way has led to a number of projects in this field, such as:

Review of environmental rating systems for UK Department of the Environment, Transport and the Regions (DETR) - (P Wells, P Nieuwenhuis)
Helping the State Planning Department of the People's Republic of China incorporate a sustainable development element into the tenth Five Year Plan. This project was funded via the United Nations Industrial Development Organisation (UNIDO) - (P Nieuwenhuis, P Wells).
CAIR's environmental research stream is now linked with the new Centre for Business Relationships, Accountability, Sustainability and Society (BRASS).

FUTURE OF CAR BODY MATERIALS

Automotive presswork/stamping sector
Steel v aluminium v composites
'Buddism' v 'Fordism'
Changing work practices in car making
Future business models for the automotive industry
Peter Wells is recognised as a foremost expert on the EU automotive presswork sector. This work has formed the basis for a wider interest in automotive body materials, both the existing steel system, and newer alternatives in steel, aluminium and composite materials.

This expertise has informed CAIR's work on future car making scenarios. Under this subheading CAIR has developed a new analysis of the history of mass car production. This shows that Budd's invention of the all-steel car body first patented in 1914 is at least as important in explaining modern mass car making than Ford's process innovations. (see under Key Publications). The economics of modern car making are closely tied in with steel body technology. Thus rather than being 'Fordist', the mass car making industry is 'Buddist'. Changing this 'Buddist paradigm' will lead to radically different ways of building cars and hence a radically different car industry.

In 2007 this work – the result of ten years of research – was published in the highly rated Oxford journal Industrial and Corporate Change. In addition, the authors were invited to present to the Ford Model T Centennial conference at the Henry Ford Museum in Dearborn, Michigan.

MOTOR SPORT AND DESIGN ENGINEERING SECTOR

The motor sport and design engineering sectors are crucial to the UK economy. Some years ago CAIR produced a landmark study on the latter for the then DTI and SMMT. This sector employs as many people in the UK as the mass car assembly plants. However, it leverages uniquely UK expertise for clients worldwide. In future this can be used to meet the requirements for greener cars. This makes the UK well placed to play a key role in future technology developments in the automotive sector. Paul Nieuwenhuis is a member of the Motor Sport Development UK Research Committee, part of BERR.