Konstanze Scharring SMMT Westminster Energy Environment amp Transport Forum 01 November 2011 UK automotive industry Sector is an important contributor to private sector investment amp export led growth ID: 372297
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Slide1
UK automotive supply chain – challenges & opportunities
Konstanze Scharring, SMMT
Westminster Energy, Environment & Transport Forum
01 November 2011Slide2
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 enginesInvested £1.5bn in R&D in 201078% of vehicles produced are exportedAccounts for over 10% of total UK exports – valued at more than £25bnAutomotive is largest exporter of goodsSlide3
Matthias Holweg
with
Yung Tran
Philip Davies
Stephan Schramm
THE UK SOURCING ROADMAP
CREATING AND SUSTAINING SUPPLY CHAIN CAPABILITIES IN THE UK AUTOMOTIVE INDUSTRYSlide4
2010
2011
2012
2013
2015
2014
Alternative powertrain parts
entering
full-scale
production
Support LCV demand
UK Sourcing Roadmap
Interior & exterior
Body & powertrain
Electrics & electronics
Identify Top-10
suppliers
Survey point #1:
OEMs
’ UK
sourcing: £7.4bn
GVA in UK supply chain: £4.8bn
Survey point #2:
Increase
in OEMs’ UK sourcing
?
Increase in GVA in UK supply chain?
Short-term opportunities through matched needs
Critical
support
Medium-
to
long-tem potential for LCV parts
Support R&D at UK suppliers
Target international suppliers
A. Shop-floor competitiveness
B. Total supply chain cost modelling
C. Finance to sustain and grow business
*
*
*
Interface area with
Technology GroupSlide5
Interior trim: 7.4 m units
Prospective UK sourcing:
what OEMs would like to source in the UK
Heavy metal:
forgings, castings, large pressings: 1 m units
Wheels: 5.8 m unitsElectric powertrain parts:Charging technology, reducers, invertors: 100,000 units
Large electric motors: 100,000 units
Batteries: 56,000 units
Struts: 5.3 m units
Glass: 7 m units
Bearings: 7 m units
Large ext. mouldings (mirrors, bumpers): 0.5 m units
Fuel cells: 100,000 units
Hybrid Conversion: 200 units
Hybrid Fuel Systems: 5,000 units
Range extender engines: 100,000 units
Power Springs 500,000
Castings 20,000
Crankshafts 20,000
Flywheels 10,000
Steering systems 500,000
Aluminium pressing & assembly 100,000
General tubular assemblies 250,000
Pressed Metal Structures 2,000
Suspension Springs 1,000,000
Appliance trims 30,000
Architectural trims 5,000
Comfort headrests 25,000
Door trim 100,000
Headliners 200,000
Instrument panels 100,000
Bumper parts 1,000,000
Glass 500,000Slide6
April 2011 event: 200 People participated
30 Buyers from 20 companies included BMW, Ford, GM, Honda, JLR, Nissan
Around 90 Suppliers
Over 200 1-2-1
meetings
Next: 3 regional events 31 Oct Melton Mowbray 8 Nov Chester 15 Nov BridgendSMMT ‘Meet the Buyer’ eventsSlide7
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 UKEncourage flexible investment in skills across the workforce Ensure quantitative easing and credit easing actually supports the automotive supply chain