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

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT and AIO Meet the Buyer 25 June 2014

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Welcome and Introductions Mike Hawes Chief Executive SMMT

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Agenda

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

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The UK Automotive Sector

+730,000 jobs dependent on automotive 140,000 in manufacturing

£60.2bn turnover £12bn value added Industry annually invests in R&D 2.5 million engines

Over 1.5 million cars annually

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Strong domestic market supporting UK industry

Source: SMMT registration data

10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 EU 27 new car registrations / millions UK new car registrations / millions

New car registrations (UK/EU27) 2006-2015

UK (left-hand axis) UK forecast EU27 (right hand axis)

UK 2.26m +10.8% (2013) EU 11.9m

• 1.7%

(2013) UK target 2.33m (2015)

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0.0 0.5 1.0 1.5 2.0 2.5 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 Volume / millions

UK car manufacture (1970-present)

Car manufacture Forecast

UK automotive manufacturing strengthening

2017 target +2.0m

2013 results 1.5m

1972 peak 1.9m

Source: SMMT PIE data

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UK export market diversity a key strength

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Overview UK automotive supply chain

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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.

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Rt Hon Michael Fallon MP Minister for Business and Enterprise

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Joe Greenwell CEO, Automotive Investment Organisation

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Joe Greenwell, CEO Automotive Investment Organisation Wednesday 25 June 2014

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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.

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Performance against KPI’s – Year 1

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£3bn Supply Chain Opportunity

Component Opportunity value (£m)

Engine castings 370 Steering systems 220 Trim 170 Harnesses 160 Seating 150 Tyres 140 Alloy wheels 140 Lighting 130 Electronics (ECU, ESP, ABS, PDC) 110 Engine forgings 170 External plastics (bumpers, trim) 100 Entertainment/Navigation 90 Bearings 80 Instrument clusters 80 Glass 70 Hinges 70 Hot Stampings 70 Welded assemblies 70

Component Opportunity value (£m)

12V lead/acid battery 60 Cast aluminium sub-frames 60 Brake callipers 50 Drive shafts & CVJs 50 Engine accessories (alternator, starter, aircon) 50 Fuel tanks 50 HVAC assembly 50 Chassis Suspension Module 40 Misc assemblies (pedals, mirrors, roof rails, grilles etc) 40 Shock absorbers 40 Heat shields 30 Oil pans 30 Small pressings 30 Transmission components 30 Large/medium pressings 30 Steel wheels 20 Carpets 20 Suspension springs 10 Switchgear 10

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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

articulate the benefits of UK R&D and manufacturing capability.

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Over £10bn Investment Commitments 2012/13

Source: SMMT 2014

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New UK Facilities in 2014

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New Lear Facility inc. Offices, Production and a Tech Centre Rosti McKechnie Plant Extension

• tttttttttttttinc. Paint Shop

Nifco New Plant & R&D Centre ElringKlinger Plant Extension

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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.

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Arrangements for the day Yung Tran

Head of Member Services

SMMT

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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.

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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.

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• 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.

Arrangements for the day

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• 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
• pportunity 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.

Arrangements for the day

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

Thank you