SME Support Roadshow: Yorkshire

19 November 2015

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd SME Support Roadshow: Yorkshire, 19 November 2015

Nikki Huggett, Project Manager SMMT Tim Hughes, Membership Account Manager SMMT

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd AgendaAgenda

1. Industry overview and current landscape

2. Opportunity for suppliers

3. Opportunities through SMMT

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 3 £69.5bn The UK Automotive Sector turnover

£12bn value

2.4 million engines 799,000 jobs dependent on automotive 1.6 million vehicles annually

158,000 in

80% of vehicles exported

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4 UK manufacturing output by site (>10k) 2014 – 1,528,148 (+1.2%) Marque No. manufactured 500,238 Sunderland Halewood 374,355

Vauxhall 178,993 Ellesmere Port

Crewe 172,215

Jaguar 121,799 Castle Bromwich Toyota Burnaston 77,836

Land Rover Solihull 75,152

10,614

Honda Source: SMMT PIE data Oxford

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5 UK car manufacturing output by site (<10k) 2014 – 1,528,148 (+1.2%) Marque No. manufactured McLaren 4,381

LTC 3,967 Coventry

MG Caterham 3,054 Longbridge Dartford

1,751

Lotus 1,492 Morgan Hethel Malvern 1,376

464

Aston Martin Gaydon Rolls-Royce 461 Goodwood

Source: SMMT PIE data

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6 UK commercial vehicle manufacturing by site 2014 – 70,731 (-19.4%) Marque No. manufactured 43,567 Leeds 11,869

Wrightbus Ballymena Land Rover 11,399 Light 4x4 Solihull 1,793

Dennis Eagle 741 Warwick

721

MINI Van 328 Oxford IBC Van + minibus Luton 313

Alexander Dennis Guildford Source: SMMT PIE data

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7 UK engine manufacture by site 2014 – 2,394,668 (-6.2%) Marque No. manufactured Nissan 1,533,280 Bentley Sunderland Crewe 279,385

226,618

Toyota Deeside JLR 226,133 i54

Honda 118,638 Swindon 10,614 BMW Hams Hall N/A Ford Bridgend Source: SMMT PIE data

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8 UK automotive manufacturing strengthening UK car manufacture (1970-present) 2020 target 2.5 +2.0m

1972 peak

2.0 2014 results

1.9m 1.52m 1.5

2015 1.0 target

1.59m Volume / / millions Volume 0.5 Car manufacture Forecast

0.0

2002 2012 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2004 2006 2008 2010 2014 2016 2018 Source: SMMT PIE data

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9 European production snapshot 2010 - 2020

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10 Production Outlook: 2015 and beyond

. Core European production (without Russia) should reach 19.2m in 2015, 19.5 in 2016 and over 21m by 2019/20

. Germany will remain powerhouse of European production, with production close to 6mn upa

. Spanish production to exceed 2.6m upa consistently from 2015 on back of record investment

. UK car and LCV production on target to exceed 2m by 2018

. UK car production now exceeds France (France produces many more vans than UK) – this pattern will continue

. Further production growth in Turkey, Hungary, Czech, Slovakia and UK

. Netherlands and Poland growing steadily over next 5 years

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11 UK Car Exports in 2014

92% in favour of staying in the EU + reform 2007 2014

EU Russia China US Others

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 12 UK Strong domestic market supporting UK industry target 2.555m New car registrations (UK/EU27) 2006-2015 (2015)

2.60 17.0 UK 2.476m 2.50 16.0

+9.3% Millions

-

Millions

- 2.40 (2014) 15.0 2.30 14.0 2.20 13.0 2.10 12.0 2.00 EU 12.5m

1.90 +5.5% 11.0

UK new car registrations registrations car newUK

(2014) registrations car 27 new EU 1.80 10.0

UK (left-hand axis) EU27 (right hand axis)

Source: SMMT registration data; ACEA registration data

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 13 UK manufacturing supported by a strong domestic market 2.47m registered in UK in 2014, highest level since 2004

2014 European Passenger Car UK top 10 best selling Registrations cars (2014) 3.5 1. Fiesta 131,254 +2.8% 3.0 2. Focus 85,140

+8.5% 2.5 3. Corsa 81,783 4. Golf 73,880 2.0 +0.3% 5. Astra 59,689 +4.1% 1.5 6. Qashqai 49,909

1.0 +15.5% Volume / mIllions/ Volume 7. Polo 48,004

0.5 8. 3 Series 45,581 9. 500 44,005 0.0 DE UK FR IT ES 10. Juke 39,263

Source: ACEA Source: SMMT data

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 14 AgendaAgenda

1. Industry overview and current landscape

2. Opportunity for suppliers

3. Opportunities through SMMT

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 15 UK manufacturing going from strength to strength

Ford: £25m Bridgend engine plant MINI: £250m Nissan: £250m Production New Infiniti triangle Toyota: £100m New hatchback JLR: £500m : Vauxhall: Bentley: £800m New engine £20m £125m New SUV model plant Gaydon New Astra

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 16 New UK facilities 2014

+100 £20m new 70 jobs Jobs

New Foam Plant in Sunderland New Plant in Northampton

£23m 220 new 500 jobs jobs

New Exhaust Plant in Wales New Plant in Kidderminster

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 17 2015 investments

JLR: £600m Castle Bromwich & Whitley

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 18 Opportunities for UK-based suppliers

. Discovery Sport announcement in October 2014 was accompanied by award of £3.5bn of business to 55 UK suppliers over life of contract . Similar values confirmed in 2015 for Jaguar XE and F-PACE . Astra providing £1.4bn lifetime boost to supply chain . Expansion of engine production by Ford offers major potential for suppliers . Significant recent investment by major tier 1s on back of this and export business: Borg Warner, Calsonic, , Gestamp, Getrag, Lear, Plastic Omnium, Tenneco and TRW have all recently announced UK investments or expansion . Automotive Investment Organisation secured c180 automotive projects in first two year of operation, creating or securing c11,500 manufacturing jobs; more to follow.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 19 UK push to be central to the Connected and Autonomous Vehicle

• Estimates suggest by 2030 the technology could deliver the UK: • 25,000 fewer serious road traffic accidents • £51bn boost to the UK economy • 320,000 more jobs

• UK well positioned to be a first mover: • Regulatory framework • £100m R&D allocation • New Centre for Connected and Autonomous Vehicles

• SMMT held SMMTConnected event and Report available on the SMMT website established the Connected and Autonomous Vehicle (CAV) Forum

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 20 AgendaAgenda

1. Industry overview and current landscape

2. Opportunity for suppliers

3. Opportunities through SMMT

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 21 1. Opportunities to deliver supply chain development

Meet the Buyer 2015: 12th May, London To promote and encourage sourcing from local (UK) suppliers.

Confirmed buyers include: 2015 • Adler Pelzer • Aisin Europe • +400 delegates • Bentley 22 Confirmed • BorgWarner Turbo Systems • 240 organisations • Brose buyers • ~250 1-2-1 meetings ‘Invitation only’ • BWI Group event • CAB Automotive • 70 exhibitions • Calsonic Kansei • Case New Holland 330+ • Faurecia 70 exhibition companies • Ford Europe stands • General Motors expressed • Grupo Antolin interest • Hitachi Automotive Systems • Honda UK Manufacturing • • Mazda • McLaren Automotive • Nissan • Peugeot Citroen • Sears Manufacturing

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 22 1. Opportunities to deliver supply chain development

Meet the Buyer 2015: Commodity List *Full listing inc. R&D ‘new technologies’ on SMMT website 1. Powertrain • Bearings, cooler pipe, driveshafts, engine accessories, fuel tank 2. Body • Aluminium extrusions, glass, hinges, light weight materials 3. Chassis, braking, steering and suspension • Alloy wheels, brake systems, steering systems, shock absorbers 4. Interior and exterior • Carpets, mirrors, trim, lighting, premium finishes 5. Electrical and electronics • Seat heaters, sensors, harness connectors 6. Processes and tooling • Forging, injection moulding, tool design, machined parts, stampings

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 23

1. Opportunities to deliver supply chain development

Regional Meet the Buyer

• Working with local/regional bodies to create event series. • Designed to deliver against OE/Tier 1 demands. • Increases supply chain visibility

and accessibility in both 1-2-1 Seminars directions. meetings • Events based on commodity need intelligence. Industry Technology speakers showcase

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 24 2. Opportunities for profile raising and increasing brand awareness

Events: Exhibitions & attendance • Affordable exhibition space with targeted automotive audiences. • Multiple events throughout the year, across the country.

SMMT Events Include: Open Forum (Biannual) Meet the Buyer SMMT Connected Regional Meet the Buyers SME Roadshows +50% discounts on Free admission CV Show exhibition space for SMMT CV Test Days for members members*

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 25 2. Opportunities for profile raising and increasing brand awareness

Open Forum

• Bi-annual event

• Midlands based

• +300 senior delegates from across the industry

• High profile key note speakers providing insight on upcoming trends and industry activities

• Affordable exhibition opportunities

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 26 More opportunity coming on stream

• SMMT has launched EOI for its latest Meet the Buyer: • To take place 8th June at Automechanika 7-9 June 2016, NEC Birmingham • Set to be the largest yet

• Automechanika Birmingham key facts: • Unprecedented level of demand for exhibition space • Halls 9, 10 and 11 • +10,000 visitors expected • +350 exhibitors expected • Coverage of all aspects of the automotive supply chain from OE to aftermarket.

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 27 Opportunities for profile raising and increasing brand awareness

Marketing opportunities • Weekly Circulars reaching 4,700 people. • Centralised social media platform. • +6,800 followers on Twitter. • +1,850 followers on Linkedin. • Monthly newsletters containing member case studies and ‘good news stories’ with a readership base of ~4,000.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 28 International business support

2015 SMMT international presence • +15 shows scheduled for

2015/16 £750 event fee • UK Pavilions waivered for SMMT • Trade missions members • Funding support • Facilitated introductions

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 29 Industry engagement and representation

Providing a safe and secure forum • Opportunities to discuss common issues and opportunities. • Share best practice. • Network, collaborate and form partnerships. • Be seen to be an active and involved member.

Using our influence • Over 100 member groups. • Influence legislation, shape UK and EU policy. • SMMT lobby on behalf of its members. • SMMT commission independent reports based on member discussions.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 30 2.Trade Trade sections sections and and committees committees

Automotive Components Section (ACS)

The ACS represents over 200 supply chain companies from Tier 1 through to Tier n. The committee is chaired by Prof. Jon King, Tata Steel. The ACS meets four times a year to discuss relevant issues and recent developments affecting the UK supply chain. The majority of ACS meetings are hosted by member companies based in the . Premila Glover Automotive Components Section Manager Main activities [email protected] • Provides opportunity for supply chain companies to raise, discuss and tackle common issues. • Through representation on committee and working group level, ACS feeds directly into: • SMMT Supply Chain Group • Automotive Council Supply Chain Group

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 31 2. TradeTrade sections sections and & committeescommittees

SMMT Supply Chain Group (SCG)

The SCG brings together the purchasing directors from all the major OEMs based in the UK such as Aston Martin, JLR and General Motors, with representatives of the 50 largest Tier 1 suppliers with a UK manufacturing presence such as Aisin, Calsonic Kansei and Robert Bosch. The SCG provides a regular forum for information dissemination, discussion and networking. Luke Hampton Supply Chain Development Manager The aim of the group is to create a forum between the OEMs and [email protected]

major Tier 1s to help create a stronger UK automotive sector.

Main activities • Discussion of current and future policies affecting the industry influencing SMMTs position and activities. • Provides opportunity for OEMs and Tier 1 suppliers to raise, discuss and tackle common issues. • Dissemination of information and updates on key Automotive Council work streams.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 32 2.Trade TradeTrade sections sections sections and and committees & committeescommittees

Innovation & Engineering Group (IEG)

The IEG is open to SMMT member companies that have qualified designers, developers, consultants and/or engineers: • who can undertake internal assignments, and/or • provide a service to clients

Main activities David Wong It brings together companies ranging from OEMs to design Technology & Innovation Manager [email protected] houses to:

• Provide a service to clients. • Share best practices. • Discuss common issues. • Network. • Source and share sector-specific information and insights. • Explore and discuss innovative ideas. • Identify public funding opportunities for collaborative and R&D projects.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 33 2.Trade TradeTrade sections sections sections and and committees & committeescommittees

Connected and Autonomous Vehicle (CAV) Forum

The CAV Forum brings together SMMT members and a community of stakeholders from government and key adjacent industries closely involved in the development and advancement of connected and autonomous vehicles to accelerate conversations, collaborations and partnerships.

David Wong Main activities Technology & Innovation Manager [email protected] • Address the four overarching challenges of technology, policy, behavioural issues and business models. • Facilitate sector specific information and insight sharing. • Inform and influence CAV policy and strategy regarding regulations, technical legislation and standards. • Identify funding opportunities and facilitate potential collaborative projects.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 34 Insight & opportunities

European Car & LCV Production Outlook report inc. UK supply chain opportunities

Free for SMMT members

£4,592 +VAT for non members

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 35 Vehicle data

Production International Exchange & Export International Exchange Reports

• Comprehensive data on UK vehicle and engine manufacture by: • Make • Model • Site • Export market

• Updated each month

• Includes historical data

• Available to multiple users

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 36 2.2.VehicleDataVehicle data data

MVRIS • Monthly reports. • New registrations • Car market segment and sales type (private, business, fleet). • Commercial Vehicle specific body type. • Cars, LCVs, HGVs, Buses & Coaches by detailed model variant. Motorparc • Service covers all the 37 million vehicle in UK parc. • Tailored reports inc. model variant and age (body type, transmission & CC); postcode district; etc.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 37 Access to Finance

Funding & support • Comprehensive guide of +100 key sources of funding, finance and business support. • European, national and regional schemes. • Updated on a quarterly basis.

R&D tax credits • First introduced in 2000 by government to encourage businesses to innovate and develop new products and services in the UK. • Two schemes: SMEs and large companies

Climate change agreement • 90% discount on CCL electricity and 65% on gas • Only specific processes eligible

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 38 Building competitiveness

Discounts on training and development • Provided through SMMT Industry Forum • Consulting, interim, training and audit • Webinars and in-house and open training courses on • Automotive Core Tools • Global management Systems ISO:9001 & • Continuous Improvement TS16949 • TS 16949 • VDA 6.3/6.5 • MMOG-LE • Total Productive Maintenance (TPM) SMMT members receive 10% discount

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 39 Thank you [email protected] [email protected]

THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd