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Toyota in the UK: Partnership and Competitiveness

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Toyota in the UK: Partnership and Competitiveness Toyota in the UK: Partnership and competitiveness Rob Gorton TMUK Corporate Planning TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota in the UK: Partnership for competitiveness Introduction: Toyota and TMUK Toyota & the UK The UK’s Competitiveness Proposition Summary TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota in the UK: Partnership for competitiveness Introduction: Toyota and TMUK Toyota & the UK The UK’s Competitiveness Proposition Summary TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota - In the World • One of the world’s leading automotive manufacturers • Operates 53 overseas and 12 TMC manufacturing companies • Markets vehicles in more than 170 countries TOYOTA MOTOR MANUFACTURING (UK) LTD European Manufacturing • 9 Manufacturing Plants TMMRTMMR -Camry – Camry & Rav4 TMIPTMIP- – Engines TME Head Office TME Technical Centre TMUKTMUK- – Engines TMUKTMUK – Auris-Auris (Hybrid),& inc Hybrid Auris TouringAvensis Sports (Hybrid) & Avensis TMMP -–Engine Engines & & Transmissions TMMFTMMF –-Yaris & Yaris Hybrid TPCATPCA - Aygo Aygo ToyotaToyotaCaetano Caetano Portugal – Land Cruisers TMMTTMMT-Verso,-Auris Corolla Around two-thirds of Toyotas sold in Europe are made & C-HR in Europe by Europeans TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota Motor Manufacturing UK Overview Deeside, North Wales Burnaston, Derbyshire engine manufacturing vehicle manufacturing Start of production Sept 1992 Start of production Dec 1992 564 employees (incl. 137 agency) 2,554 employees (incl. 170 agency) Both plants represent a £2.5 billion Investment TOYOTA MOTOR MANUFACTURING (UK) LTD Scale of our operations Burnaston plant: vehicle manufacturing Press Weld Paint Plastics Assembly Quality Assurance TOYOTA MOTOR MANUFACTURING (UK) LTD Scale of our operations Deeside plant: engine manufacturing Casting & Machining Assembly Quality Assurance TOYOTA MOTOR MANUFACTURING (UK) LTD UK production history [1992-2016] Engines Vehicles Vehicle Engines x 1,000 x 1,000 300 600 Hybrid 250 500 Corolla/Auris 200 Carina E / Avensis 400 CKD 150 300 Engines 100 200 50 100 0 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Made 4 million vehicles and 3 million engines (inc CKD) TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota in the UK: Partnership for competitiveness Introduction: Toyota and TMUK Toyota & the UK The UK’s Competitiveness Proposition Summary TOYOTA MOTOR MANUFACTURING (UK) LTD Economic impact: Direct benefit Burnaston, Derbyshire Deeside, North Wales vehicle manufacturing engine manufacturing 2,554 employees 564 employees £1.5 billion investment £700 million investment Other Turkey Other Exports: 4.5% 3.8% EFTA Exports: TSAM, 4.0% 1.3% UK EU28 (exc UK) Norway TMUK, 37.0% TMMT, 57.0% TMC, 15.7% 71.9% 2.8% 2.0% £2.1 Billion Export Revenue (FY15) TOYOTA MOTOR MANUFACTURING (UK) LTD Economic Impact: Supply Chain Annual spend with TMUK £900m suppliers by Toyota Motor Europe Total of all Toyota Motor largest concentration Europe suppliers in the UK: 25% by country in Europe European plants supplied 90 by Tier 1 suppliers TOYOTA MOTOR MANUFACTURING (UK) LTD Industry Impact: Manufacturing UK Vehicle production 2016 Production Toyota 180,425 10% 2500K Nissan MG Rover Nissan Japanese BLMC Honda Peugeot National- 507,444 29% 822,015 48% ised +4.6% Toyota 2000K Honda 134,146 8% GM (Vauxhall) TOTAL 1500K 118,182 7% 1,722,698 Jaguar Land Rover 32% 544,401 Non-Japanese 1000K 52% BMW (Mini) 900,683 210,973 12% Entry of Japanese Decline of UK- Exit of New manufacturers Others 500K owned Peugeot, Investment & foreign 2% manufacturing Rover & revival 27,127 acquisition 1970 1980 1990 2000 2010 TOYOTA MOTOR MANUFACTURING (UK) LTD Industry Impact: Manufacturing skills Toyota Academy / Apprentice Development Centre • Partnership with Burton & South Derbyshire College • Working with 25 different local suppliers & SMES • training 104 apprentices. • Toyota (GB) centralised training to co-locate to Retail & Manufacturing Burnaston, operational since September 2016. Programmes • Art of Manufacturing: introduce Year 4-6 students to engineering and manufacturing (59 programmes = 1,785 pupils) • Industrial Cadets: work experience for years 10-11: work through simulation whilst promoting careers in Manufacturing & Engineering (9 programmes = 137 pupils) • UTC education design & delivery (JCB Academy UTC and Derby Manufacturing UTC) • Educational Governorships TOYOTA MOTOR MANUFACTURING (UK) LTD Community Impact Donations Volunteering • 42 vehicles in past 2 years to • Business in the Community (BITC) Derbyshire Fire & Rescue for volunteering e.g. 2016 refurbishment of a accident recovery training Derby Community Centre • 50 airbags in 2016 for road • Apprentice volunteering e.g. school safety initiatives in schools garden regeneration Partnerships Business in the Community – Member : Awards, Volunteering, Advisory board, Prince’s Ambassador for Responsible Business in the East Midlands Derby County Football Club – longest serving corporate partner CLC – Community Liaison Committee – working with our local parishes. Egginton Flood defences. Etwall leisure centre. Local Nature Partnership – Protecting & improving the natural environment. Derbyshire Wildlife Trust - Corporate Member – First business to sign up to Transforming the Trent Valley Initiative – committing to preserving and restoring wildlife habitats on our land Derby Renaissance Board – creating a thriving and attractive city for all. Marketing Derby – Bondholder. Promoting Derby city to support and attract investment South Derbys District Council – Partnership Board member & Community Strategy Review Working group Twinning – Twinning partnership between Derbyshire, Derby City and South Derbyshire local government and Toyota City established 1998. Eco Day 2016 TOYOTA MOTOR MANUFACTURING (UK) LTD Community Impact: Charitable involvement Toyota Manufacturing UK Over £5.5 million donated to Charitable Trust. Charity Cheque Handover local & national charities Est. 2008 Focus Areas: • Road Safety • Health • Social Inclusion Fundraising through Lean Approach Seminars, Public Managed by a team of 6 Trustees representing Visits & member fundraising activities. Over £305k TMUK management & shop floor members. raised in 2016. Employability Programmes • Foyer Federation Working Assets Programme • 6 month programme • “Toyota Road to Success” 9 week • Since 2012 employability programme for • Up to 12 participants per young people (NEETs) programme • 6 programmes within Derby city & • 2015/16: 100% participants now South Derbyshire across 3 years in training, employment or • Funded by The Charitable Trust working in voluntary sector TOYOTA MOTOR MANUFACTURING (UK) LTD Community Impact: Environment Biodiversity promotion and performance Community Partnership Founding partner Site habitat of Trent Valley monitoring and Living Landscape Management Initiative Since 2004 Toyota nature reserve Created Toyota Nature Reserve in 2010 Linking nature with Education peoples homes and Activities and places of work Annual family eco day Wildlife Trust Employee Official Launch volunteering May 2010 TOYOTA MOTOR MANUFACTURING (UK) LTD Green Grid – Partnership with Kew Royal Botanic Gardens Toyota has joined forces with the Royal Botanic Gardens, Kew, in an industry-first partnership to promote biodiversity and environmental excellence at our UK sites. Natural surroundings… In future it will create even more natural habitats 234,000m2 habitat restoration by 2020. TOYOTA MOTOR MANUFACTURING (UK) LTD Toyota in the UK: Partnership for competitiveness Introduction: Toyota and TMUK Toyota & the UK The UK’s Competitiveness Proposition Summary TOYOTA MOTOR MANUFACTURING (UK) LTD Burnaston – at start of construction 1988 - Greenfield site TOYOTA MOTOR MANUFACTURING (UK) LTD Burnaston – at start of construction 1989 TOYOTA MOTOR MANUFACTURING (UK) LTD Burnaston – during construction 1991 TOYOTA MOTOR MANUFACTURING (UK) LTD Burnaston - today Today TOYOTA MOTOR MANUFACTURING (UK) LTD Reasons for a UK location • Tradition of vehicle manufacturing • Large domestic market • Transport links Why the • Working practices UK? • Positive attitude towards FDI from government • English language • Barrier-free single market access • Availability of suitable land with good transport links Why • Local skilled & flexible workforce Derbyshire • Local authority enthusiasm & willingness to assist & Infrastructure provision Flintshire? Business and personnel support service to assist with local integration TOYOTA MOTOR MANUFACTURING (UK) LTD Reasons for a UK location What now in times of increased uncertainty? Clearly understand own competitiveness TOYOTA MOTOR MANUFACTURING (UK) LTD Automotive Council Context 1. Maintain an objective set of KPIs based on real industry priority, to inform industry and government by clearly understanding the UK’s strengths and weaknesses 2. Develop a set of “Killer facts” and use to demonstrate UK’s competitive advantage, which can be delivered consistently to key decision makers in automotive TOYOTA MOTOR MANUFACTURING (UK) LTD The UK’s International Competitivenss Agree long-list of Agree list of 25 Prioritise into KPIs indicators based on comparator countries and competitiveness detailed discussions. globally – based on 29 competitiveness drivers based on 8 KPIs Clarify availability & automotive / drivers industry survey result credibility of data. economic weight. Key principle: What are the main drivers considered important by the people who make the real investment decisions Research
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