THIS IS THE Ingenuity and precision A U T O MOT IVE 150+ £3b 18k has a highly skilled and expert workforce, as well as excellent facilities for , research and development. From developing revolutionary components, materials and alternative fuels, Wales is heading in the right direction.

THIS IS THE AUTOMOTIVE INDUSTRY

The automotive industry in Wales iStream carbon system manufacturing features around 150 companies process developed by car designer employing 18,000 people and Gordon Murray. generating £3 billion each year. Recent investment at 's The industry ranges from Ford, which Deeside engine plant has enabled has produced over 20 million engines the manufacture of its latest hybrid in Wales, to Riversimple producing engine and brought total investment their first zero emission car. at the plant to around £700 million. As the sector moves into an exciting These projects add significantly new era, two luxury car makers have to the £140million investment turned to Wales for their latest committed by the sector in Wales developments. will build in the last two years. its new DBX Crossover model at Cardiff Airport and St Athan Enterprise Zone Strong links between the industry in the Vale of Glamorgan, while TVR and the universities of Wales, ensure have identified Ebbw Vale Enterprise that there’s a backbone of research Zone as their preferred location to and development to fuel the next build the new TVR sports car which generation of automotive innovation. will be offered with the innovative 1 THIS IS AUTOMOTIVE | Ingenuity and precision

COMPONENTS

The automotive sector Companies operating in in Wales features:- Wales include:-

— Over 150 companies – including 1 Toyota (Deeside) Original Equipment Manufacturers 2 Calsonic Kansei (Llanelli) like Ford and Toyota, as well as high value/tier 1 suppliers such as 3 Cast Alum (Welshpool) Schaeffler and Calsonic Kansei. 4 Continental Teves (Ebbw Vale) — Over 20 million engines produced 5 Ford (Bridgend) in Wales. 6 GTEKT (Ebbw Vale) — A skilled workforce of over 7 JTEKT Automotive (Resolven) 18,000 people. 8 Meritor (Cwmbran) — £3 billion annual turnover. 9 Schaeffler (Llanelli) — An established, diverse 10 Unifrax Emission Control supply chain. Europe Ltd (Holywell) — Easy access to UK automotive 11 Senior Flexonics (Crumlin) centres from South Wales: Jaguar 12 Sogefi Filtration(Tredegar) , and (BMW). 13 Stadco (Powys) And from North Wales: Toyota 14 Sumitomo Electrical Industries Ltd Derby, Sunderland and (Ystradgynlais) GM (Vauxhall) Ellesmere Port. 15 Gestamp Tallent Ltd (Llanelli) 16 Tenneco-Walker (Tredegar) 17 JCB (Wrexham) 18 TRW (Pontypool) 19 Reflex & Allen(Bodelwyddan) 20 Toyoda Gosei (Gorseinon)

2 "There is a good local supply chain. I spend around £7.2m a year on locally sourced components. So, we definitely have the infrastructure and the capabilities in Wales." Clayton Harding, Mollertech UK 3 THIS IS AUTOMOTIVE | Ingenuity and precision

WALES AND THE AUTOMOTIVE SECTOR

Wales is now on the verge of being a serious player in the Motor Industry after a momentous 2016.

The first quarter saw significant the back of a 5.2% rise in UK vehicle announcements by Aston Martin production in 2015, the sixth and TVR to build a plant in the Cardiff successive year of growth. In addition, Airport and St Athan and Ebbw Vale some 2.3 million engines were made Enterprise Zones respectively. in the UK with around one third of Around 1,000 people will be employed these made in Wales. initially. Output will add to the UK’s The UK voting to leave the European 'super' up-market cluster, which is Union in 2016 means a year of the largest in the world. In addition, momentous change. Like many, major investment was announced the automotive industry holds its by Toyota in its Deeside plant to breath and awaits the implications make hybrid engines. of this decision. Wales’ green credentials have been The UK accounts for over 18% of further enhanced with the launch the EU car market and 23% of the of Llandrindod Wells based River commercial vehicle market. In one Simple’s prototype hydrogen fuel way or another Germany accounts cell car. This is in addition to the for 38% of the UK car market and publication of the report of the Low France for 15%). In the case of medium Carbon Expert Steering Group to and heavy commercial vehicles, the Welsh Government. Germany and Sweden together with This has been a strong year for the DAF (Dutch controlled but US owned) 150 or so Wales-based components rely hugely on UK sales. By value, and systems suppliers. There has German and Swedish imports are been growth in vehicle output, with even more significant. Clearly, a free a number of manufacturers reporting trade agreement is not only in the increased half-year output. This is on UK’s interests. Add to this that 60% 4 by value of components used in and 60% of engines are. This can be UK-built vehicles (except buses) come an incentive to increase UK-supplied mainly from Germany and this point is content of UK-made vehicles. only reinforced. These are interesting times. As part If there is a permanent marginal of the fastest growing major EU reduction in the influence of the ‘City’ economy, there are many reasons on the UK’s balance of payments then to be optimistic about the future of the long-term exchange rate may the automotive industry. better reflect the interests of manufacturing in the UK. This lower Prof Garel Rhys CBE rate will help exports. Despite so much Chair of the Welsh Automotive Forum and President of the Centre for Automotive of a UK vehicle being imported, this Industry Research at will be neutralised when the vehicle is exported, as over 77% of vehicles 5 THIS IS AUTOMOTIVE | Ingenuity and precision

ACADEMIC FOCUS

Wales produces over 6,000 science Alternative powertrain and and engineering graduates a year. materials technology Within our eight universities, there is a wealth of academic expertise applying – University of South Wales itself to the automotive industry. Hybrid and full electric vehicle powertrain From vehicle design and materials Automotive energy storage research, to next-generation power – Cardiff University train and fuel technology, here are Emission reduction just a few of our academic centres Mechanical and structural that are working with the sector:– performance –  University Automotive design, prototyping Lightweighting and testing Composite technology

– University of Wales Trinity St David Automotive Design Alternative fuel technology Non-Destructive Testing – Cardiff University – Swansea University Alternative Transport Fuels Computational Fluid Dynamics – University of South Wales – Cardiff Metropolitan University Hydrogen Centre Product Design & Development – Aberystwyth University Plant compound transport fuels

6 Industry support in Wales Wales means business

The Welsh Automotive Forum (WAF) – The Welsh Government supports is the authoritative voice of the growing businesses with: automotive industry in Wales. WAF – The best funding packages showcases its members’ products in Europe. and services at international events and campaigns. It lobbies on their – Generous support for skills behalf on local, national and development. international platforms. – Specialist advice and exceptional WAF works with the SMMT and UK financial support for R&D. Automotive Council to further the – Unique and innovative support for business goals of members, especially global trade development. in supply chain technology and skills. – World class academic collaborations. – Dedicated enterprise zones. Wales is an empowered nation

Accessible ministers and government Support from experts enable swift decision-making and delivering against priorities for Wales Proactive support for business is in terms of jobs, growth and wealth. delivered through a dedicated account manager, who assists with market intelligence, identifying new business opportunities and supply chain development.

THIS IS AUTOMOTIVE | Ingenuity and precision

WHAT NEXT?

The opportunities for the Find out what Wales can do for Automotive sector in Wales are your business: many and varied – so let’s talk. Call one of our team to find out UK— more about what Wales can do +44 (0) 3000 6 03000 for your business. tradeandinvest.wales

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