Transcript Slide 1

UK automotive supply chain – challenges &
opportunities
Konstanze Scharring, SMMT
Westminster Energy, Environment & Transport Forum
01 November 2011
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
SMMT, the ‘S’ symbol and the ‘Driving the motor industry’
brandline are trademarks of SMMT Ltd
UK automotive industry
Sector is an important contributor to private sector investment & export led growth
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UK automotive turnover - £49bn in 2010 – 6.7% of total UK.
Sector employees 150,000 directly, 720,000 in total.
7 volume car producers.
8 commercial vehicle producers.
19 of world’s largest 20 component
manufacturers in UK.
Produces 1.5mn vehicles and 2mn engines
Invested £1.5bn in R&D in 2010
78% of vehicles produced are exported
Accounts for over 10% of total UK exports
– valued at more than £25bn
Automotive is largest exporter of goods
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
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THE UK SOURCING ROADMAP
CREATING AND SUSTAINING SUPPLY CHAIN
CAPABILITIES IN THE UK AUTOMOTIVE INDUSTRY
Matthias Holweg
with
Yung Tran
Philip Davies
Stephan Schramm
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Support LCV demand
Identify
Top-10
suppliers
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Support R&D at UK suppliers
Target international suppliers
Short-term
opportunities
through matched
needs
Medium- to
long-tem
potential for
LCV parts
UK Sourcing Roadmap
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Interface area with
Technology Group
Alternative powertrain
parts entering
full-scale production
Electrics & electronics
Body & powertrain
Interior & exterior
Critical
support
A. Shop-floor competitiveness
B. Total supply chain cost modelling
C. Finance to sustain and grow business
2010
2011
Survey point #1:
A. OEMs’ UK sourcing: £7.4bn
B. GVA in UK supply chain: £4.8bn
2012
2013
2014
2015
Survey point #2:
A. Increase in OEMs’ UK sourcing?
B. Increase in GVA in UK supply chain?
SMMT ‘Meet the Buyer’ events
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
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April 2011 event:
200 People participated
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Around 90 Suppliers
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Over 200 1-2-1
meetings
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Next: 3 regional events
31 Oct Melton Mowbray
8 Nov Chester
15 Nov Bridgend
30 Buyers from
20 companies included
BMW, Ford, GM,
Honda, JLR, Nissan
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Government policies to support investment & growth
Key industry asks for Autumn Statement
Industry seeks a supportive business environment that allows
automotive sector to drive innovation, secure high quality employment
and deliver sustainable economic growth
Need for unlocking private sector investment in R&D, capital
equipment, plants and machinery, and skills
– Reform R&D tax relief for large companies to make it
internationally competitive
– Reverse reduction in capital allowances to support cyclical, high
investment industries like automotive
– End uncompetitive business rates and opaque valuation
methodology for automotive sites in the UK
– Encourage flexible investment in skills across the workforce
Ensure quantitative easing and credit easing actually supports the
automotive supply chain
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
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