POLICY REPORT - CONFIDENTIAL DECEMBER 2013 SMMT, the 'S' symbol and the ‘Driving the motor October 2013 Policy Report | Page 1 industry’ brandline are trademarks of SMMT Ltd SMMT PUBLIC POLICY AND VEHICLE LEGISLATION DEPARTMENT SMMT, 71 Great Peter Street, London. SW1P 2BN Telephone: +44 (0)20 7344 plus extension Fax: +44 (0)20 7344 9269 December 2013 Policy Report | Page 2 CONTENTS Automotive Council Page 4 Automotive Council Newsletter, October 2013 4 Automotive Council Newsletter, November 2013 8 Automotive Council Technology Group minutes, 2 October 2013 11 SMMT political issues Page 18 CARS2020 update 18 Skills update 19 Letter from Matthew Hancock MP, Skills Minister, 26 November 2013 24 Lobbying update 25 APMG breakfast meeting note, 30 October 2013 26 APMG breakfast invitation, 11 December 2013 28 Conservative Party conference meeting notes, 30 September 2013 29 Reshuffle briefing 31 Robert Goodwill speech to CV Forum 35 SMMT economic issues Page 38 SMMT Autumn statement update submission, 11 November 2013 38 Industrial strategy update 42 Europe update 44 Trade policy update 48 Environment Page 50 New car/van CO2 regulations update 50 HDV CO2 update 51 Noise update 52 Diesel fuel filter blocking update 57 Energy efficiency schemes update 62 Marketing best practice principles update 65 Low carbon vehicles Page 71 Low carbon vehicle update 71 Matthew Pencharz meeting note, 13 November 2013 74 SMMT position on proposed Central London ULEZ 75 Transport policy & safety Page 79 eCall update 79 Letter to Transport Secretary re: Motoring Services Modernisation, 15 October 2013 88 Letter to DfT re: proposal for an alternative process for obtaining NSSTA, 28 October 2013 90 Proposal for an alternative process for obtaining NSSTA 91 Digital Radio Page 95 Digital radio briefing, Septmeber/October 2013 95 Letter to Ed Vaizey MP, re: Digital Radio Switchover, 7 November 2013 97 Letter from Ed Vaizey MP, re: Digital Radio Switchover, 28 November 2013 98 Briefing papers Page 99 Consultation Index Page 100 December 2013 Policy Report | Page 3 AUTOMOTIVE COUNCIL NEWSLETTER, OCTOBER 2013 October was See Inside Manufacturing month, with automotive manufacturers up and down the UK opening their doors in a bid to inspire the next generation of engineers. Successfully piloted by the automotive sector since 2011, the scheme’s success has taken UK industry by storm, with fully 10 sectors participating this year. McLaren kicked off the month's events, giving the offices of the Department for Business, Innovation and Skills a Silverstone-style makeover for a showcase of its Manufacturing Challenge – where schoolchildren were tasked with building and then racing their own motor- less vehicles along a track. Overseeing proceedings were Business Secretary Vince Cable and Alan Foster, Operations Director at McLaren. In the West Midlands, students were given backstage passes to the Jaguar XJ assembly lines at the firm’s Castle Bromwich plant, where they discovered the advanced manufacturing processes behind the firm’s flagship vehicle. The pupils also tried their hands at programming miniature robot arms, and took part in a special production challenge. BMW, Ford, Michelin, Toyota and Vauxhall all offered See Inside Manufacturing experiences of their own, while Nissan took over the exhibition space at the SMMT offices to tell the production story of its all-new Note – from design, to clay modelling, to full manufacture. Elsewhere, October saw further investment announcements across the UK automotive industry. Engine manufacturer Cosworth is to open a new £30 million ‘centre of excellence’, which will create 70 direct jobs and an estimated 200 in the supply chain. The University of Warwick, meanwhile, will be home to a new multi-million pound research centre working with staff from Jaguar Land Rover, Tata Motors European Technical Centre and others when its new National Automotive Innovation Campus opens in 2016 with support from the Higher Education Funding Council for England. Racing start for the next generation of engineers A joint government-industry initiative to encourage young people to consider a career in manufacturing moved into the fast lane when McLaren roared into Westminster. The McLaren Manufacturing Challenge formed part of the See Inside Manufacturing campaign and aimed to encourage students to think about engineering in a practical, hands- on sense by designing a motor-less vehicle that, just as in Formula 1, had to comply with strict regulations. To read more click here. Latest News Jaguar Land Rover’s Castle Bromwich plant opens its doors to young people as part of the See Inside Manufacturing initiative A group of 40 students aged 17-19 from Wales High School, Sheffield, visited Jaguar Land Rover’s Castle Bromwich plant to find out more about manufacturing. During the visit, which was part of the See Inside Manufacturing campaign, the students visited the Jaguar XJ assembly lines to find out about quality, lean production and automation. To find out more click here. Nissan backs next generation of UK manufacturing talent December 2013 Policy Report | Page 4 Nissan gave hundreds of young people from across the country a unique behind-the- scenes insight into its UK operations as part of its continued commitment to the See Inside Manufacturing initiative. The company’s involvement with this year’s initiative began when Nissan’s record- breaking Sunderland Plant threw open its doors, giving 1,500 students the chance to see the new Nissan Note in production and the chance to participate in a series of hands-on challenges and team building exercises on an engineering theme. To find out more click here. Ministers visit engineering session for young women at Oxford’s MINI plant Skills and Enterprise Minister Matthew Hancock visited MINI Plant Oxford to meet 30 young women from across the UK as part of a government drive to encourage female students to consider a career in engineering. Mr Hancock was joined by Employment Minister Esther McVey to meet participants in the Girls Go Technical programme which is part of a week-long taster in the See Inside Manufacturing initiative. To find out more click here. Michelin introduces students to the world of engineering Michelin opened the doors of its Ballymena production plant to students as part of the See Inside Manufacturing scheme. On October 22 and 24, the factory, which employs about 1,000 staff and produces bus and truck tyres, offered students a behind-the-scenes look at the manufacturing process. To find out more click here. Toyota opens its doors hoping to inspire students Young people across Staffordshire and Derbyshire gained an insight into the diverse range of careers available within the manufacturing sector as pupils from local schools visited Toyota Manufacturing UK. Nine local schools from the Derby and Burton regions visited the Burnaston facility over two weeks. Students were given the opportunity to take part in a number of hands-on training activities and given an insight into the exciting, highly skilled, high-tech and highly paid career opportunities that modern manufacturing offers. To find out more click here. Vauxhall throws its doors open to See Inside Manufacturing As part of the See Inside Manufacturing scheme, Vauxhall welcomed students, teachers and career advisers to show them the world of manufacturing. With eight events at its manufacturing plant on Kimpton Road, Luton and its warehouse operation on Toddington Road, Luton, October saw hundreds of young people obtain an insight into Vauxhall’s manufacturing, engineering and supply chain operations, and also December 2013 Policy Report | Page 5 gain valuable knowledge of the wide range of careers’ opportunities available to them. To find out more click here. Nissan’s Monozukuri Caravan delivers innovation and excitement to UK schoolchildren Nissan is giving British schoolchildren a unique insight into the art of car manufacturing by bringing the company’s ‘Monozukuri Caravan’ to the UK for the first time. The Nissan Monozukuri Caravan is a hands-on, interactive workshop which educates and engages Primary Schools in 21st century automotive manufacturing and is part of the company’s global ‘Blue Citizenship’ activities. To find out more click here. Cosworth to create 70 jobs with new ‘centre of excellence’ Cosworth has announced plans for a new £30 million manufacturing facility in Northampton, which will lead to the creation of around 70 jobs. The ‘centre of excellence’ will implement advanced technologies, with Cosworth having signed deals with two currently unnamed companies to supply engine components. In addition to the 70 jobs directly created, it is estimated that the investment will spawn a further 200 jobs in the supply chain. To find out more click here. Jaguar Land Rover reveals future plans for R&D in the UK Jaguar Land Rover has unveiled details of its future plans for advanced research and development in the UK which will now be focused on a new cutting-edge technology, innovation and education centre in Warwick. To find out more click here. Infiniti Performance Engineering Academy – now open for applications Infiniti Motor Company Limited has opened applications for the Infiniti Performance Engineering Academy, offering an exclusive opportunity to secure a year work placement with four-time Formula One World Champions Infiniti Red Bull Racing. Two winning candidates will be selected from partner universities and colleges worldwide to complete a 12-month assignment with the quadruple World Championship- winning Formula One team in Milton Keynes, UK. To find out more, and how to enter, click here. Do you have the Kaizen factor? Toyota has launched a search for Britain’s most promising young talent to join its UK operations. Recruitment is under way for its student placement scheme, giving undergraduates a great opportunity to gain hands-on work experience with the world’s leading motor manufacturer. To find out more click here. December 2013 Policy Report | Page 6 Infiniti production in Europe takes a major dig forward Construction of the first Infiniti production facilities in Europe has begun in Sunderland, UK.