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Automotive Strategy

In July 2013 the Automotive Council published ‘Driving success – an industrial strategy for growth and sustainability in the automotive sector’. It was presented by the two co-chairs of the Council Professor Richard Parry-Jones CBE representing the industry and the Business Secretary Dr Vince Cable.

The strategy sets out how the UK can secure the long term future of the industry over the next 20 to 30 years by growing the UK share of the value chain and by getting ahead of the game in research and development of low carbon vehicles.

The key deliverables from the strategy are:

  • The creation of the Advanced Propulsion Centre to position the UK as a centre of excellence for low carbon propulsion development and production.
  • The creation of the Automotive Investment Organisation targeting inward investment in the UK supply chain.
  • Boosting supply chain growth and investment to help more companies of all sizes achieve world class performance to enable them to win new business.
  • Create a skills pipeline through improved information and advice for young people, more and better apprenticeships, high quality graduate and post-graduate training, and responsive vocational training to help companies up-skill.
  • Tackling the key competitiveness, policy and macro-economic issues that will cement the UK as the best place in the world to do automotive business.

Supply Chain Development

A new Automotive Council report has highlighted a fresh £2 billion growth opportunity for UK component suppliers as UK car makers enjoy an unprecedented period of success.

The report, released on 4 November 2014 assesses the ‘reshoring’ potential for ‘upstream’ automotive suppliers – in other words, the capacity for the UK to increase local supply of components and raw materials which are currently imported.

The £2bn figure comes on top of £3bn identified last year for supply direct to vehicle manufacturers, on which progress is being made. Industry experts point to the accelerating growth potential in the automotive sector as well as local-sourcing benefits of lower logistics costs, greater flexibility and faster response times.

Currently around one third of the components in a UK-built vehicle are sourced in the UK. The report identifies a realistic aim to increase this local content to around 60% – similar to other European countries such as France, Germany, Italy and Spain.

Business Minister Matthew Hancock said, “The automotive sector is thriving and our supply chain firms are helping to create jobs and generate growth, but there is more to be done. That is why last month we announced £10 million of government money to address skills shortages in the auto supply chain to help UK companies win more contracts.

“This news that there is an extra £2bn of sourcing opportunities for UK automotive suppliers – taking the total to £5bn – is great news for the UK economy.”

Another key finding to emerge from the report is that UK automotive suppliers are – in the main – confident about their future prospects. Of the companies surveyed, 80% expect their business to grow in the near-term.

Dave Allen, Purchasing Director, Jaguar Land Rover and Chair of the Automotive Council Supply Chain Group, said, “The current success of the UK automotive sector presents a renewed opportunity for automotive suppliers to invest in the UK and to increase local sourcing of the high value components that the UK’s world-class vehicle makers require.

“With this report we now have good visibility of the depth and value of the opportunity throughout the supply chain, together with deliverable actions to turn this opportunity into reality.”

Automotive companies seeking local content supply can also take advantage of SMMT’s Automotive Supplier Finder, a comprehensive database covering over 4,000 automotive product and service categories.

The full report ‘Growing the Automotive Supply Chain’ can be downloaded below.

Updates to all of this information are provided by the Automotive Council on progress towards delivering the strategy and these will be available on this web page.

It is a core function of the APC to provide a channel of communication for the Automotive Council. The APC contact for questions relating to the Automotive Council is Jon Beasley who can be emailed at jon.beasley@apcuk.co.uk