SMMT and AIO Meet the Buyer 25 June 2014 SMMT, the S symbol and - PowerPoint PPT Presentation

SMMT and AIO Meet the Buyer 25 June 2014 SMMT, the ‘S’ symbol and the ‘Driving the motor THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED industry’ brandline are trademarks of SMMT Ltd

Welcome and Introductions Mike Hawes Chief Executive SMMT THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Agenda Time Subject Speaker 08:30 – 09:30 Registration - networking and refreshments 09:30 – 09:35 Mike Hawes, Chief Executive, SMMT Welcome and introductions 09:35 – 09:45 Rt Hon Michael Fallon MP, Minister for Business and How HMG is supporting the UK Automotive Industry Enterprise 09:45 – 09:55 Joe Greenwell, Chief Executive Officer, Automotive AIO Overview: attracting overseas investment Investment Organisation, UK Trade and Investment 09:55 – 10:00 Arrangements for the day Yung Tran, Head of Member Services and Business Improvement, SMMT 10:00 – 10:30 Refreshments, networking and preparation for one to one meetings 10:30 – 17:00 Including rolling buffet lunch between 12:30 and 14:00 One to one meetings and networking from 10.30am (booth area) First appointment from 10:30 Last appointment finishes by 17:00 THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 3

The UK Automotive Sector Over 1.5 million cars annually +730,000 jobs dependent on automotive 140,000 in 2.5 million manufacturing engines £60.2bn Industry annually invests turnover £12bn value added in R&D THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4

Strong domestic market supporting UK industry UK New car registrations (UK/EU27) 2006-2015 target 2.5 17.0 EU 27 new car registrations / millions UK new car registrations / millions UK 2.33m 2.4 16.0 2.26m (2015) +10.8% 2.3 15.0 (2013) 2.2 14.0 2.1 13.0 EU 11.9m 2.0 12.0 -1.7% 1.9 11.0 (2013) 1.8 10.0 UK (left-hand axis) UK forecast EU27 (right hand axis) Source: SMMT registration data THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5

UK automotive manufacturing strengthening 2017 target UK car manufacture (1970-present) +2.0m 2.5 1972 peak 2013 results 2.0 1.9m 1.5m Volume / millions 1.5 1.0 0.5 Car manufacture Forecast 0.0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: SMMT PIE data SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6

UK export market diversity a key strength THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7

Overview UK automotive supply chain THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8

Supporting UK supply chain competitiveness • Supporting and growing UK supply chain vital for long term prosperity of UK automotive sector. • Continuing appetite by many OEMs & Tier 1s to source more locally. • Supply chain issues still remain: - Access to finance - Recruitment - Skills • Government fully engaged and recognises importance of sector with Automotive Council as the focal point for joint government & industry collaboration. THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9

Rt Hon Michael Fallon MP Minister for Business and Enterprise THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10

Joe Greenwell CEO, Automotive Investment Organisation THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11

Joe Greenwell, CEO Automotive Investment Organisation Wednesday 25 June 2014 12

Automotive Investment Organisation - Our Purpose • Leverage Inward Investment to deliver long-term and sustainable growth in the UK Automotive sector and supply chain • Build and strengthen the Government’s relationships with strategic automotive investors in the UK • Increase the amount of foreign investment in the UK automotive sector – particularly in strategic areas • Promote the image of the UK automotive sector among key decision makers in overseas markets and promote the investment and trade opportunity. 13 13

Performance against KPI’s – Year 1 14 14

£3bn Supply Chain Opportunity Component Opportunity value (£m) Component Opportunity value (£m) 12V lead/acid battery 60 Engine castings 370 Cast aluminium sub-frames 60 Steering systems 220 Brake callipers 50 Trim 170 Drive shafts & CVJs 50 Harnesses 160 Engine accessories (alternator, starter, aircon) 50 Seating 150 Fuel tanks 50 Tyres 140 HVAC assembly 50 Alloy wheels 140 Chassis Suspension Module 40 Lighting 130 Misc assemblies (pedals, mirrors, roof rails, Electronics (ECU, ESP, ABS, PDC) 110 grilles etc) 40 Engine forgings 170 Shock absorbers 40 External plastics (bumpers, trim) 100 Heat shields 30 Entertainment/Navigation 90 Oil pans 30 Bearings 80 Small pressings 30 Instrument clusters 80 Transmission components 30 Glass 70 Large/medium pressings 30 Hinges 70 Steel wheels 20 Hot Stampings 70 Carpets 20 Welded assemblies 70 Suspension springs 10 Switchgear 10 15 15

AIO Priorities for the future Building on existing efforts  Supply Chain Refresh the £3bn list, work with OEMs to understand investment opportunities connected to future supply chain needs, work collaboratively with Posts to develop global engagement plans for Tier 1 suppliers  R&D – Develop the R&D materials, and work with the Technology Group to identify target investor shortlists. Working closely with BIS, TSB and OLEV on ULEV-supply chain analysis and with TSB and TSC on Intelligent Mobility  LEPs – Develop effective, locally focused, partnership working with the automotive LEPs, participate in the LEP Leadership Forum and develop a programme with Marketing Birmingham piloting joint locally focused resource. New strands of activity  Trade and Investment - Integrate Trade and Investment support for Automotive companies within the AIO providing a broader service for our clients.  Motorsport – Develop a joint BIS-AIO-MIA Motorsport strategy, to leverage the investment and export potential of the motorsport sector, with a particular focus on R&D  Marketing/Press – Generate a marketing plan that ensures the AIO gets consistent, positive coverage – working in a joint team with BIS and SMMT to align our efforts.  OEMs – Building on our initial engagements with developing world OEMs, underpinned by detailed research, and 16 16 articulate the benefits of UK R&D and manufacturing capability.

Over £10bn Investment Commitments 2012/13 17 17 Source: SMMT 2014

New UK Facilities in 2014 Nifco New Plant & R&D Centre ElringKlinger Plant Extension Rosti McKechnie Plant Extension New Lear Facility inc. Offices, tttttttttttttinc. Paint Shop Production and a Tech Centre 18 18

Conclusion  £10bn investment commitments 2012/13  OEMs seeking local procurement  £3bn targeted commodities identified  AIO formed to support investors  Government assistance through a competitive tax regime, AMSCI RGF, Industrial Strategy, Enterprise Zones etc.  Stable industrial relations and flexible workforce  A business-friendly environment for the Automotive sector  Very strong Industry body - SMMT UKTI is Here to Help. 19 19

Arrangements for the day Yung Tran Head of Member Services SMMT SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 20

Emergency Procedures Fire assembly point When the alarm is activated please exit fire the fire escapes and make your way to Royal Victoria Square to the assembly point. THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 21

Arrangements for the day • All participants should have their schedule for today. • Over 230 pre-scheduled one-to-one meetings taking place. • Suppliers can request extra meetings at the booking desk. • Please note not all requests will be approved and if already submitted online they will automatically be processed and there is no need to resubmit. • Once a meeting has been successfully scheduled you will be contacted by mobile. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 22

Arrangements for the day • Timetable for meetings starts at 10:30 and will continue through to 17:00. • Scheduled meetings will last 25 minutes with 5 minutes ‘change over’ time. • A tannoy will signal the end of each meeting, please finish promptly to allow the next meeting to take place. • Buffet lunch available between 12:30 - 14:00. • Everyone will have 30 minutes lunch minimum built into the schedule. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 23

Arrangements for the day • Wi-Fi access is available please speak to a member of the team. • For those with a gap in their schedule, please do take the opportunity to network and speak to the exhibitors. • Please fill in an evaluation form before you leave at the end of today, they will provide us with the information needed to plan future events. • If you have any questions please do not hesitate to ask a member of SMMT/AIO staff. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 24

Thank you Society of Motor Manufacturers and Traders Limited 71 Great Peter Street, London SW1P 2BN www.smmt.co.uk THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED