Francis Evans DTI Car Directorate "Helping the UK-based vehicle and segments industry contend and win in world markets".

Francis Evans DTI Automotive Directorate “Helping the UK-based vehicle and segments industry contend and win in world markets” THE UK AUTOMOTIVE SUPPLY CHAIN: A GOVERNMENT PERSPECTIVE Presentation for University of Birmingham Automotive Engineering course 17 th October 2003

A 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 world’s main 20 Tier 1 organizations work in the UK

THE 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 – numerous don\'t relate to car Tax yield from the area (VAT, VED and fuel obligations) is 11% of aggregate Government income

KEY STATISTICS See http://www.autoindustry.co.uk/measurements/key

KEY STATISTICS See http://www.autoindustry.co.uk/insights/key

KEY STATISTICS See http://www.autoindustry.co.uk/measurements/key

KEY STATISTICS

UK and the worldwide economy Sources: OECD, Invest.UK

FIVE 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

KEY CHANGE 1 ( Common-rail diesel ) Suppliers can develop advances that VMs can\'t supply themselves. Cases: Bosch basic rail diesel ZF 6-speed auto ‘box Torotrak IVT Suppliers pick favored clients

KEY CHANGE 2 ( The cantina\'s end ) Suppliers can empower VMs to fill market corners all the more rapidly Examples: Constructors – Valmet, Magna, Bertone Design engineers – Ricardo, Prodrive Joint improvement – MVS and MG VMs still need to see the pattern . . .

KEY 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

KEY CHANGE 4 ( Integrated store network administration ) OEMs need perceivability, speed and decreased intricacy of interfaces Examples: Systems integrators – Dana, Delphi Trading stages and trades Elimination of different MRP frameworks Global acquiring – Nissan/Renault

KEY CHANGE 5 ( Luxury brand administration ) In a full grown business sector, brands include esteem when all items perform enough Examples: BMW, Porsche – the most gainful OEMs Brand portfolios – Ford PAG Building a brand – Prodrive/Subaru How far will it stretch – X-sort, Passat W8

SUMMARY ( what it implies for supplier organizations ) Global sourcing means thing items can and will be sourced anyplace – 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.

SUMMARY ( 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

SUPPLIER STRATEGIES there is no ‘correct’ 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

DTI STRATEGY Globalization Technology and development World Class Company change Education and aptitudes

SUPPLIER EXAMPLES Wagon – master in lightweight materials GKN – worldwide mastery in drivetrain Bosch, tire creators – own IPR Momo, Recaro – perceived brands Mayflower – outline item and procedure Unipart – greatness in dissemination Castings plc – high-speculation & quality Prodrive – utilizing motorsport advantage

AIGT PRIORITIES Automotive Academy Supply Chain Groups University Centers of Excellence Foresight vehicle – R&D cooperation Mobility ventures – in 3 UK urban communities

CUSTOMER 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