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


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Francis Evans DTI Car Unit "Helping the UK-based vehicle and segments industry contend and win in world markets" THE UK Car Store network: An Administration Point of view Presentation for College of Birmingham Car Building course 21 st October 2004
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Francis Evans DTI Automotive Unit “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 21 st October 2004

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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

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THE UK AUTOMOTIVE SECTOR Turnover is 5.5% of GDP (£40bn) Passenger auto generation 1.6 million in 2003 (development at Honda, Toyota, BMW however MGR down) 11% of UK fares (£19bn) - more prominent than some other assembling part 700,000 employments in the UK business of which 150,000 are in the segments division 7,000 segments firms of which more than 90% are SMEs – numerous don\'t relate to car Tax yield from the segment (VAT, VED and fuel obligations) is 11% of aggregate Government income

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

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

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

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INWARD INVESTMENT Within Europe, UK draws in: 45% of US speculation 43% of Japanese venture 15% of German speculation half of Korean speculation

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INWARD INVESTMENT

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RECENT INVESTMENTS Toyota £50m at Burnaston, in addition to 60k units Nissan to deliver new ‘Tone’ at Sunderland Honda diesel motor at Swindon BMW £40m at Swindon Pressings and . . . £400m at Hams Hall for new motor family Ford/Getrag JV £200m for new 6-speed gearbox at Halewood

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THE UK’s POSITION Threats 6m units overcapacity in Europe 20m units overcapacity all around (= one plant for each VM situated in Europe!) Outsourcing of parts In outline: globalization Opportunities Follow sourcing Move up worth chain Indigenous development through advancement Attract speculators In rundown: globalization

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

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AIGT* PRIORITIES *Automotive Innovation & Growth Team Automotive Academy Supply Chain Groups Technology Centers of Excellence Low-carbon advances Transport telematics Foresight vehicle – R&D joint effort Mobility ventures – in 3 UK urban communities The AIGT reports can be downloaded from www.autoindustry.co.uk

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SUPPLIER STRATEGIES there is no ‘correct’ system high-volume, high included worth per individual fast reaction models or unique cases offer own image quality to clients item advancement process advancement post-retail supply: low volume/high assortment corner items/administrations change the client base

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SUPPLIER EXAMPLES Wagon – master in lightweight materials GKN – worldwide skill in drivetrain Bosch, tire creators – own IPR Momo, Recaro – perceived brands Stadco – outline item and procedure Unipart – magnificence in dispersion Castings plc – high-venture & quality Prodrive – utilizing motorsport advantage

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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. Be that as it may, VMs do worth access to new advancements and included quality administrations, for example, late design and supply in line grouping (SILS). Suppliers need to pick their client with consideration.

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SUMMARY ( what it implies for specialists ) OEMs need Quality, Cost, Delivery . . . yet, likewise improvement capacity, adaptability of reaction, joining with different suppliers, innovation that upgrades their image. They esteem individuals with whom it is anything but difficult to work. Key qualities: interchanges, venture administration, group working, advancement

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CUSTOMER EXPECTATIONS FOR THE SUPPLY OF ENGINEERING GRADUATES Up-to-date specialized information Practical use of hypothesis Problem-understanding methodology Team working capacity Written and oral correspondence Project administration Managing one’s own time Business society Continuous expert improvement

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