Francis Evans DTI Automotive Directorate âHelping the UK-based vehicle and segments industry contend and win in world marketsâ THE UK AUTOMOTIVE SUPPLY CHAIN: A GOVERNMENT PERSPECTIVE Presentation for University of Birmingham Automotive Engineering course 17 th October 2003
Slide 2A GLOBAL INDUSTRY IN THE UK 8 worldwide vehicle makers: Honda Renault/Nissan BMW VW Group Toyota Ford PAG GM Peugeot One UK-possessed volume producer 40+ low-volume makers Motorsport - the world pioneer 17 of the worldâs main 20 Tier 1 organizations work in the UK
Slide 3THE UK AUTOMOTIVE SECTOR Turnover is 5.5% of GDP (£40bn) Passenger auto generation 1.6 million in 2002 (2003 development at Honda, Toyota, BMW) 11% of UK fares (£19bn) - more noteworthy than whatever other assembling segment 700,000 occupations in the UK business of which 150,000 are in the segments division 7,000 parts firms of which more than 90% are SMEs â numerous don\'t relate to car Tax yield from the area (VAT, VED and fuel obligations) is 11% of aggregate Government income
Slide 4KEY STATISTICS See http://www.autoindustry.co.uk/measurements/key
Slide 5KEY STATISTICS See http://www.autoindustry.co.uk/insights/key
Slide 6KEY STATISTICS See http://www.autoindustry.co.uk/measurements/key
Slide 7KEY STATISTICS
Slide 8UK and the worldwide economy Sources: OECD, Invest.UK
Slide 9FIVE KEY CHANGES (Automotive News Europe) Common-rail diesel The cantina\'s end (Vectra, Mondeo) The rise of Tier 0.5 suppliers Integrated store network administration Luxury brand administration
Slide 10KEY CHANGE 1 ( Common-rail diesel ) Suppliers can develop advances that VMs can\'t supply themselves. Cases: Bosch basic rail diesel ZF 6-speed auto âbox Torotrak IVT Suppliers pick favored clients
Slide 11KEY CHANGE 2 ( The cantina\'s end ) Suppliers can empower VMs to fill market corners all the more rapidly Examples: Constructors â Valmet, Magna, Bertone Design engineers â Ricardo, Prodrive Joint improvement â MVS and MG VMs still need to see the pattern . . .
Slide 12KEY CHANGE 3 ( The rise of Tier 0.5 suppliers ) Tier 0.5 Suppliers offer worldwide vicinity and new abilities: segment coordination, measured supply, sequenced supply Examples: Magna, Lear: inside modules Delphi: SILS communities for GM in the UK Continental: Tire/wheel/brake module
Slide 13KEY CHANGE 4 ( Integrated store network administration ) OEMs need perceivability, speed and decreased intricacy of interfaces Examples: Systems integrators â Dana, Delphi Trading stages and trades Elimination of different MRP frameworks Global acquiring â Nissan/Renault
Slide 14KEY CHANGE 5 ( Luxury brand administration ) In a full grown business sector, brands include esteem when all items perform enough Examples: BMW, Porsche â the most gainful OEMs Brand portfolios â Ford PAG Building a brand â Prodrive/Subaru How far will it stretch â X-sort, Passat W8
Slide 15SUMMARY ( what it implies for supplier organizations ) Global sourcing means thing items can and will be sourced anyplace â this is an open door for suppliers as well. Yet, VMs do quality access to new improvements and included worth administrations, for example, late arrangement and supply in line succession (SILS). Suppliers need to pick their client with consideration.
Slide 16SUMMARY ( what it implies for designers ) OEMs need Quality, Cost, Delivery . . . in any case, likewise improvement ability, adaptability of reaction, reconciliation with different suppliers, innovation that upgrades their image. They esteem individuals with whom it is anything but difficult to work. Key qualities: correspondences, venture administration, group working, development
Slide 17SUPPLIER STRATEGIES there is no âcorrectâ technique high-volume, high included worth per individual quick reaction models or unique cases offer own image worth to clients item advancement process development post-retail supply: low volume/high assortment specialty items/administrations change the client base
Slide 18DTI STRATEGY Globalization Technology and development World Class Company change Education and aptitudes
Slide 19SUPPLIER EXAMPLES Wagon â master in lightweight materials GKN â worldwide mastery in drivetrain Bosch, tire creators â own IPR Momo, Recaro â perceived brands Mayflower â outline item and procedure Unipart â greatness in dissemination Castings plc â high-speculation & quality Prodrive â utilizing motorsport advantage
Slide 20AIGT PRIORITIES Automotive Academy Supply Chain Groups University Centers of Excellence Foresight vehicle â R&D cooperation Mobility ventures â in 3 UK urban communities
Slide 21CUSTOMER EXPECTATIONS FOR THE SUPPLY OF ENGINEERING GRADUATES Up-to-date specialized information Practical utilization of hypothesis Problem-settling methodology Team working capacity Written and oral correspondence Project