smmt and aio meet the buyer€¦ · smmt and aio meet the buyer 25 june 2014 . the society of motor...

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

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Welcome and Introductions

Mike Hawes Chief Executive

SMMT


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


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


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 2

7 n

ew c

ar r

egi

stra

tio

ns

/ m

illio

ns

UK

new

car

re

gist

rati

on

s /

mill

ion

s

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)

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6

0.0

0.5

1.0

1.5

2.0

2.5 1

97

0

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

Vo

lum

e /

mill

ion

s

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


UK export market diversity a key strength


Overview UK automotive supply chain


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.


Rt Hon Michael Fallon MP

Minister for Business and Enterprise


Joe Greenwell

CEO, Automotive Investment Organisation

12

Joe Greenwell, CEO Automotive Investment Organisation

Wednesday 25 June 2014

13 13

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.

14

Performance against KPI’s – Year 1

14

15 15

£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

16

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. 16

17 17

Over £10bn Investment Commitments 2012/13

Source: SMMT 2014

18

New UK Facilities in 2014

18

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

19 19

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.



Yung Tran Head of Member Services

SMMT

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

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.



• 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.


• 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.



• 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

71 Great Peter Street, London SW1P 2BN

www.smmt.co.uk

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

Thank you

smmt and aio meet the buyer€¦ · smmt and aio meet the buyer 25 june 2014 . the society of motor...

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