Vauxhall

Motors
Business Analysis and
Problem-Solving
 Vauxhall Motors is one of the oldest automobile
manufacturers in the UK.

Founded in 1857, it has a rich heritage in car and van

production.
Introduction to

Became part of the Stellantis group following the PSA

Group and FCA merger in 2021.

Key models include the Vauxhall Astra, Vauxhall Corsa,

and the Mokka-e.
Vauxhall

The company has a strong focus on innovation and

electric vehicle development.

Vauxhall is recognized for its strong brand identity in the

UK (Smith, 2022).
 PESTLE: Political

The UK’s post-Brexit

UK government’s drive Brexit created supply
trade deals with non-
for electric vehicle chain challenges and
EU countries present
adoption benefits trade tariffs affecting
both opportunities and
Vauxhall. imports/exports.
risks (Johnson, 2022).

Government incentives Changes in global Regulations on

for low-emission trade policies could autonomous driving
vehicles could impact Vauxhall’s raw are shaping future
increase sales. material sourcing. innovation strategies.
 With inflation continuing to rise, consumers purchasing new cars and
trucks are feel the pinch of purchasing power; many buyers are finding
new vehicles simply arenot affordable. Amid high costs of living,
consumers may delay vehicle purchases or choose lower-priced
models. Vauxhall as a manufacturer will have to adapt to this change in
consumer purchasing behaviour, being pragmatic on pricing and
providing attractive finance and leasing solutions to ensure sales
volumes can be maintained in what is becoming a more volatile
economic environment.

PESTLE: As consumers emerge from lockdowns, demand for cars has returned
amid the UK's economic recovery from COVID-19. The Production
Recovery Because Consumer confidence & the buying of new cars is

Economic
returning to support UK car output this time represents a substantial
opportunity for Vauxhall. Also, the company has to contend with supply
chain constraints as it ramps up production of new vehicles.

The company is one of many manufacturers, including Vauxhall, for

which profit margins are being severely hit by burgeoning raw material
costs, especially for electric vehicle (EV) batteries. With growing demand
for EVs, the requirement
PESTLE: Social

1 2 3
There is an observable trend where more The new generation o consumers is more EVs are already taking over the market share
consumers are becoming environmentally focused on sustainable and technology- however other consumers that have been
conscious and this, in turn, is helping the oriented cars, which involves a shift in their used to petrol and diesel engines could take
demand for electrical vehicles (EVs) grow as core values as well as the shift in the priorities long to accept the transition all because of
people look out for sustainable ways during of technology. The change in demographics is the charging network, the range of the vehicle
their purchasing decisions. Many people are drenching the automotive market because and performance of the vehicle.
becoming aware of climate change and its older generations’ preferences and
effects and hence are looking for alternatives expectations do not concern manufacturers
to petrol and diesel cars. This is why anymore. An electric drivetrain,
companies like Vauxhall have no option but to environmentally friendly materials and the
speed up the EV development strategies due most innovative technologies have become
to the market demand as well as the mandatory in addressing the consumers that
government initiatives on sustainability this market segment has, which means that
(Thompson, 2023). Vauxhall needs to re-invent and create
models that this market prefers.
PESTLE: Technological
• Investment in electric vehicles is one of Vauxhall’s strategic directions for the future, in
accordance with the trends on the market and environmental initiatives to decrease the level of
emissions and to respond to consumers’ demand for green cars in the context of the transition
to a sustainable transportation system (Miller, 2022).
• Partnership with Stellantis makes Vauxhall supply with equipment-critical research and
development that it could have taken years to develop independently, giving it a competitive
edge in important growing technologies like electrical vehicles and production processes (Miller,
2022).
• insistence on the creation of autonomous cars provides a competitive advantage to the Vauxhall
for future market of self-driving features and systems (Miller, 2022).
• This area is particularly the case at Vauxhall where digital transformation strengthens
manufacturing productivity with digital technologies that include Artificial Intelligence and data
analysis, reducing manufacturing costs (Miller, 2022).
• As more consumers look for connected vehicle capabilities, Vauxhall is moving up in the market
for internet-connected automobiles and satisfying customers’ needs for ease, real-time data,
and improved performance (Miller, 2022).
• To sustain its growth, innovation is inevitable for Vauxhall to meet the high sets by new entrants
such as Tesla and Volkswagen, which are focused on pursuing technological changes in new
markets such as electric and self-driving cars (Miller, 2022).
 PESTLE: Environmental

• The UK government's aim of having all new cars being zero-emission by 2030 is one of the major driving forces for change in the UK automotive
market. Such policies compel manufacturers like Vauxhall to quickly shift their focus to electric vehicles and other sustaina ble development
alternatives. Meeting this aim will be paramount not only for protecting the competitive advantage but also for meeting chang ing consumer needs
(Jones, 2023).
• Vauxhall is working towards the determination of cutting the company’s carbon output across the entire life cycle of its prod ucts. The company plans to
implement better operational processes alongside integrating innovativeness so as to minimize the effects on the environment. In fact, their efforts in
sustainability do not only assist in complying with regulations and the demand of consuming population for green products but also ensure that
Vauxhall remains competitive in the market for many years to come.
• Another keynote area for Vauxhall in order to improve its environmental performance is sustainable sourcing of raw materials. In order to achieve its
goals, the company will work with those partners in the supply chain who have an aim and a practice in ecology when it comes to the extraction of
materials. This commitment not only helps reduce the overall carbon footprint but also supports ethical business practices wi thin the automotive
industry. Moreover, Vauxhall faces a variety of stringent environmental regulation from regions across the world, all of whic h regulate operating
emissions to strict levels.
• The aims of these regulations are to alleviate the effects of climate change and ensure that manufacturers become stakeholder s in the national and
global sustainability vision. These requirements are important to Vauxhall for retaining their standing in the market so as n ot to be exposed to possible
sanctions but at the same time reinforce the transition to low-carbon solutions in transport.
• As more people recognize the dangers of devastating climate change, the focus on the issues is directly shifted on the climate-friendly car segment,
leaving no choice for manufacturers but to embrace the EV revolution. Vauxhall in this regard is stepping up, focusing on fin ding ways of making
transportation more sustainable. This transition is not only compliant with the laws of the country but also prepares Vauxhall to satisfy the demand of
its customers for vehicles with controlled impact on the environment.
• An area where Vauxhall’s production facilities and equipment will have to be streamlined to the environmental targets will be their energy efficiency as
this will also lead to reduced costs across the board. The corporation can enhance its productivity while reducing carbon emi ssions by integrating
energy-efficient technologies and workflows. This emphasis on efficiency is not simply important for compliance and guidelines, but it brings Vauxhall
amongst the front runners in the quest of sustainable manufacturing in the automotive industry.
•
PESTLE: Legal
GDPR as well as other data It mean that Vauxhall has to follow
Environmental and emissions
protection laws place significant some very specific legal conditions
controls also affect the business
restrictions on the connected which regard automobile safety and
since the UK and EU require that
vehicles that belong to Vauxhall – autonomous driving, thus remaining
products conform to strict
thus preserving the privacy of the committed to the principles and
environmental rules so that the
customers’ data and compliancy of achieving customers’ trust by
carbon neutral goals are achieved
the auto tech sector (Anderson, meeting new safety standards and
(Anderson, 2022).
2022). requirements.

Intellectual property laws help

At Vauxhall, Brexit affects trade as Owning to the policies set out by
Vauxhall protect ideas, designs and
well as manufacturing operations the labor laws, Vauxhall
new inventions from other
since it results in new regulations employment and HR policies are
competitors through legal
that alter manufacturing techniques bound to conform the laws in order
framework that sustains invention
and deploys barriers to the overall to conform to the standards of the
novelty and invention that will
processes within the UK and EU labor laws and safeguard worker’s
produce brand values and growth in
market (Anderson, 2022). rights (Anderson, 2022).
the long run (Anderson, 2022).
 SWOT: Strengths & Weaknesses

Established
Strengths: Strong Wide range of vehicle Access to Stellantis
distribution network
brand recognition in options, including resources for R&D
and loyal customer
the UK. electric models. and innovation.
base.

Weaknesses: Stiff High costs

Supply chain Heavy reliance on UK
competition from associated with EV
vulnerabilities post- market limits growth
international brands production and
Brexit (Davis, 2022). potential.
like Ford and Nissan. innovation.
 Organizational Structure
The functional structure that Vauxhall has utilized can be summarised as follows: Vauxhall uses specialized
departments from manufacturing, marketing to sales departments that are undertaken to carry out specific
tasks for the organization with optimized efficiency (Lewis, 2023).
Policies and decisions at the Vauxhall Firm are centralized to minimize the variations of policies and practices
within the numerous functional departments to boost functional unity all through the Firm (Lewis, 2023)).

Resource sharing: Vauxhall currently operates in strategic pooling with Stellantis to leverage its resources on
resources that enhance effective innovation since they are limited in supply, an arrangement that makes the firm
more competitive (Lewis, 2023).
This functional structure improves Vauxhall operating model where by departments concentrate on their areas
while minimizing resource wastage (Lewis, 2023).

Some threats that affect Vauxhall include an inability to change, higher fixed costs leading to slower decision-
making due to a less flexible organization structure in a fast dynamic competitive market (Lewis, 2023).
Supply Chain Issues
• The Brexit has brought devastating impacts to Vauxhall as it altered, slowed down and
complicated supply chain of this company in car production as it sought to solve the problems
of cross-border transactions in the automobile business (Carter, 2023).
• This new tariff and customs border check because of Brexit has led to a high cost of importing
materials that are essential in the production of these automobiles hence a challenge to the
overall production costs at Vauxhall (Carter, 2023).
• Uncertainties caused by COVID-19 worsened the issues of Vauxhall global supply chain thereby
impacting severely on its supplies which in turn affected production which highlighted on the
aspect of supply chain as learned by Carter (2023).
• Raw material availability is another operational challenge at Vauxhall since availability of these
raw materials fluctuates and may affect production schedules; Additionally, the company’s
attempt to find new sources of raw materials can lead to increased operational cost (Carter,
2023).
• It is vital for Vauxhall to reduce its reliance on import sourced parts so that improving supply
chain risks are minimized, and stability is achieved: One way to achieve this is by robust local
supply supply chain connections.
• Another approach that Vauxhall employs links AI with supply chain management and
improvement of its supply chain responsiveness by introducing digitized applications that
improve supply chain orchestration and help track the chain’s performance in real-time (Carter,
2023).
Recommendations for Problem-Solving

The Brexit has brought devastating This new tariff and customs border check Uncertainties caused by COVID-19
impacts to Vauxhall as it altered, slowed because of Brexit has led to a high cost of worsened the issues of Vauxhall global
down and complicated supply chain of importing materials that are essential in supply chain thereby impacting severely
this company in car production as it the production of these automobiles on its supplies which in turn affected
sought to solve the problems of cross- hence a challenge to the overall production which highlighted on the
border transactions in the automobile production costs at Vauxhall (Carter, aspect of supply chain as learned by
business (Carter, 2023). 2023). Carter (2023).

Raw material availability is another

Another approach that Vauxhall employs
operational challenge at Vauxhall since It is vital for Vauxhall to reduce its
links AI with supply chain management
availability of these raw materials reliance on import sourced parts so that
and improvement of its supply chain
fluctuates and may affect production improving supply chain risks are
responsiveness by introducing digitized
schedules; Additionally, the company’s minimized, and stability is achieved: One
applications that improve supply chain
attempt to find new sources of raw way to achieve this is by robust local
orchestration and help track the chain’s
materials can lead to increased supply supply chain connections.
performance in real-time (Carter, 2023).
operational cost (Carter, 2023).
Conclusion
Vauxhall holds a strong market position in the UK automotive sector, but it faces several significant challenges that
could impact its future growth. The dual pressures of Brexit and the COVID-19 pandemic have notably affected
supply chain efficiency and overall profitability, disrupting operations and increasing costs. These challenges
necessitate a strategic reevaluation of Vauxhall's supply chain management to ensure resilience against future
disruptions.

In response to evolving market demands, Vauxhall's emphasis on electric vehicle (EV) development aligns well
with current trends toward sustainability and reduced emissions, positioning the brand to capture a share of the
growing EV market (Williams, 2023). However, addressing supply chain vulnerabilities is critical for the company's
long-term success.

Furthermore, collaboration with Stellantis offers Vauxhall access to vital innovation and global resources,
enhancing its competitive edge in the automotive landscape. To thrive in this rapidly evolving industry, Vauxhall
must embrace agility and continuous innovation, adapting to changing consumer preferences and technological
advancements. By proactively addressing these challenges, Vauxhall can maintain its strong position in the UK
market while successfully navigating the complexities of the modern automotive environment.
 Anderson, R. (2022). Legal implications of Brexit on the automotive industry. Automotive Law Journal,
45(3), 145-160.
Brown, J., & Thompson, A. (2021). Vauxhall's strategic shift: Adapting to the Stellantis era. Business
Strategy Review, 32(4), 89-103.
Carter, M. (2023). The impact of Brexit on supply chain efficiency. Supply Chain Review, 15(2), 23-30.

Davis, L. (2022). SWOT analysis of Vauxhall Motors. Strategic Management Journal, 28(2), 57-72.

Green, S. (2023). Economic impacts on the automotive sector post-COVID. Journal of Economic
Research, 29(5), 75-90.

Reference
Johnson, K. (2022). Trade policies and the automotive industry: A post-Brexit review. Global Trade
Journal, 19(3), 111-124.
Jones, P. (2023). Environmental regulations and their impact on automotive manufacturing.
Environmental Policy Review, 14(1), 64-78.
Lewis, H. (2023). Organizational structures in the automotive industry. Organizational Behavior Review,
35(2), 98-112.
Miller, C. (2022). Technological advancements in electric vehicle manufacturing. Technology and
Innovation Journal, 40(3), 155-170.
Smith, A. (2022). The history and evolution of Vauxhall Motors. Automotive History Review, 22(4), 34-48.

Smith, A., & Lewis, D. (2022). Supply chain management strategies for Brexit. Supply Chain Insights,
10(4), 18-24.
Thompson, G. (2023). Social trends shaping the future of the automotive industry. Consumer Behavior
Insights, 11(3), 45-62.
Williams, T. (2023). Vauxhall's journey towards electric vehicles. Innovation and Technology Review,
37(2), 83-95.
Appendix Slide 7: EV Market Trends and
Vauxhall's Market Share
• The electric vehicle (EV) market has experienced significant growth
from 2018 to 2024, achieving a remarkable compound annual
growth rate (CAGR) of 20%. This expansion is primarily driven by
various factors, including government incentives that promote the
adoption of cleaner technologies, rising fuel prices that encourage
consumers to consider alternatives, and increasing environmental
concerns that highlight the urgency for sustainable transportation
solutions.
• In the UK, EV sales have surged dramatically, rising from just 1.6% of
total vehicle sales in 2018 to an impressive 16.5% in 2023, as
reported in the EV Market Report (2023).
• Vauxhall has capitalized on this growing trend, with its market share
increasing from 4.5% in 2020 to 6.2% in 2023. This growth can be
attributed to the company’s strategic focus on electric models,
particularly the popular Vauxhall Corsa-e and Mokka-e, which
resonate well with environmentally conscious consumers.
Appendix
Slide 8:
PESTLE
Deeper Dive
– External
Environment
Influences
Appendix Slide
9:
Organizational
Structure –
Functional
Divisions
Appendix Slide 10:
Expanded
Recommendations
– Supply Chain
Management
 Carter, M. (2023). The impact of Brexit on supply chain
efficiency. Supply Chain Review, 15(2), 23-30.

Green, S. (2023). Economic impacts on the automotive

References
sector post-COVID. Journal of Economic Research, 29(5),
75-90.

(for
Jones, P. (2023). Environmental regulations and their
impact on automotive manufacturing. Environmental
Policy Review, 14(1), 64-78.

Appendix) Smith, A. (2022). The history and evolution of Vauxhall

Motors. Automotive History Review, 22(4), 34-48.

Williams, T. (2023). Vauxhall's journey towards electric

vehicles. Innovation and Technology Review, 37(2), 83-95.
Any Question
Thank You