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 • • • • • • • • • • 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 PAGE 2 THE UK SOURCING ROADMAP CREATING AND SUSTAINING SUPPLY CHAIN CAPABILITIES IN THE UK AUTOMOTIVE INDUSTRY Matthias Holweg with Yung Tran Philip Davies Stephan Schramm * Support LCV demand Identify Top-10 suppliers * 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 * 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 • • • • • • • April 2011 event: 200 People participated • Around 90 Suppliers • • Over 200 1-2-1 meetings • • • • 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 PAGE 6 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 PAGE 7