SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 1
UK Components industry – a snapshot
SMMT - since 1902 representing the UK industry - vehicle
manufacturers, OEM component and independent aftermarket
manufacturers, suppliers and distributors www.smmt.co.uk.
• Majority of UK automotive manufacturing capacity foreign-owned.
• Focus on quality, flexibility and exploitation of emerging technologies.
• Component industry fragmented and multi-tiered – 2600 companies;
£3.8 billion annual revenue – 54% exports.
• Block Exemption Changes in “Tied aftermarket” and “Independent
aftermarket”.
• Franchised dealers losing market to independents; rise in DIY for first
time in 20 years; shrinkage in crash repair market.
• SERMI - Security related repair and service information
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 2
UK Automotive manufacturing – a snapshot
• UK vehicle production ranks 4th in European volume.
• In 2010 exported over £27bn of vehicles and parts.
• 30 key manufacturing plants – 7 volume car, 11 commercial vehicle.
• 2.3 million engines manufactured 2010 – 72% exports.
• 1.39m vehicles made in 2010:
– Car production rose to 1.27m in 2010.
– CV production rose to 123,000 in 2010.
• 75% of cars and 73% of CVs manufactured in UK are exported.
• 11 of the global volume manufacturers have UK presence
backed by 18 of the world top 20 suppliers
• UK had fourth highest R&D spend in Europe at over £1.5 billion p.a.
– representing a fifth of core global automotive R&D activity.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 3
Society of Motor Manufacturers and Traders Limited
71 Great Peter Street London SW1P 2BN
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
An introduction to SMMT
The Society of Motor Manufacturers and Traders (SMMT)
is the principal UK motor industry trade association
• Since 1902 - representing the UK industry - vehicle manufacturers,
OEM component and independent aftermarket manufacturers,
suppliers and distributors www.smmt.co.uk .
• Liaising with UK government – Automotive Council.
• Contact with EU Commission and trade bodies to influence national
and international standards and legislation – and help members
access UK and European government funding.
• Promoting industry - inward / outward trade delegations / exhibitor
groups overseas, organising exhibitions including the annual
Commercial Vehicle Show.
• Support on technical and vehicle legislation, e-business, quality,
environment, education and training.
• Providing data services - acknowledged as reliable, accurate and
comprehensive.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 5
UK Market Overview
• Majority of UK automotive manufacturing capacity foreign-owned.
• Mature market, 4th largest car producer in EU*.
• Exports worth an average of over £25 billion in the last five years over 10% of the UK’s total exports.
• Car production rose to over 1.27m vehicles in 2010 (following
decline to under 1m in 2009 due to global recession) – car exports
increased in the past decade from almost 65% of output in 2000 to
75.7% in 2010.
• Commercial vehicle production consistently over 200,000 units for
5 years from 2004 (but fell back to 90,000 vehicles in 2009
unsupported by scrappage scheme). Production increased to
123,019 in 2010 with exports equating to 69.5% of production.
• UK had fourth highest R&D spend in Europe at over £1.5 billion
p.a. – representing a fifth of core global automotive R&D activity.
* Source OICA
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 6
UK Market Overview
• 31 key vehicle manufacturing sites: seven volume passenger car,
11 commercial vehicle, bus, coach and taxi manufacturers.
• A global base for engine manufacture with 2.3 million units in 2010
(reduced from high of >3.1m in 2008 – due to Japan effect).
• 19 of the world’s top 20 industry suppliers and vehicle assemblers
including11 global volume vehicle manufacturers located in UK.
• Motor sport cluster for development and manufacture: eight F1
teams supported by over 300 specialist motorsport companies.
• Over 4,000 component suppliers - http://www.autosupplierfinder.com/
• Many foreign vehicle manufacturers now have UK-based R&D
centres: Nissan at Cranfield; Ford at Dunton; SAIC at Longbridge;
Changan at Nottingham; TATA at Warwick.
• Creation of UK Automotive Council – framework for collaboration
with Government to improve the UK investment offer and
positioning of UK as centre for ultra low carbon development.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 7
Key elements of the sector
•
•
•
•
•
•
•
•
•
•
Efficient manufacture of both volume and premium / niche vehicles.
Mature OEM component aftermarket and accessory manufacture.
Strong power-train sector with technological innovation and scale.
Low Carbon technology and electric vehicle development and
manufacture.
Comprehensive OEM aftermarket component manufacture,
distribution, service and repair capacity.
Strong independent design engineering and testing base.
Significant foreign manufacturing investment and R&D investment /
spend.
In depth HE academic study & research and FE sector training.
Construction equipment and components manufacture.
Highly sophisticated retail and distribution logistics import / export
services and finance.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 8
Some key issues for the UK automotive industry
• Economic crisis – Europe, USA, Japan market decline /
overcapacity.
• Sustainable Government support – Access to finance.
• Low cost economy countries / High growth markets – both
opportunity and competition.
• Local supply chain fragmented - erosion “hollowing out”/
overseas head office decision making.
• SME global trade awareness / global competitiveness / skills and
training.
• Maintaining manufacturing efficiency, investment in UK based
design engineering, research and development.
• Environmental / Low carbon legislation, alternative fuels, ICE
hybrids, Electric vehicles.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 9
Some key UK technology opportunities
• In-vehicle communications and management systems – driver
communications; congestion warning systems; navigation;
telematics.
• Safety; driver / passenger / pedestrian protection.
• Fuel cells / powertrain / hybrid / electric vehicles.
• Materials; composites and alternative materials / jointing
technology
• Environmental protection / emissions; sound and vibration
technology
• Vehicle and engine management; monitoring technology
• Control and electronics and associated software.
• Rapid prototyping and manufacturing process improvement.
Source : The United Kingdom Automotive Industries Report
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 10
Changing Dynamics of UK Car Sector
Demise of the old ‘Big 3’ - Growth of Japanese & BMW
2500
Others
BMW
Honda
UK Vehicle Production in Thousands
2000
Toyota
Nissan
Land Rover
1500
Jaguar
Vauxhall
Peugeot
1000
Ford
Rover
500
0
1972
1982
1999
2006
2007
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
2008
2009
2010
PAGE 11
UK Production
Restructuring, Rebirth, Recession, Recovery
SMMT Production Outlook
1.8
Vehicle Production in Millions
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
90
91
92
93
94
95
96
97
98
99
'00
'01
'07
'08
'09
'10
'11
'12
'13
'14
Years
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 12
UK vehicle manufacturer range
VOLUME
• BMW - Mini range of cars
• Honda - Civic, CRV, Jazz & Jazz Hybrid cars
• Jaguar – New XJ, XK XF & R cars
• Land Rover - Defender, Discovery,Freelander, Range Rover,
Range Rover Sport & Evoque (from 2011)
• Nissan – Micra, Note / Tone, Qashqai & Juke (and Leaf
electric in 2012)
• Toyota - Auris, Auris Hybrid & New Avensis
• Vauxhall – New Astra car plus Astra & Vivaro vans, Ampera
EV (from 2013?)
COMMERCIAL
• Alexander Dennis - Enviro, Primo, Centro, Javelin buses &
coaches
• Dennis Eagle - Duo, Twin Pack, Beta 2, Elite 2, & Phoenix 2
refuse trucks
• Ford - Transit van, Transit Minibus
• GM/IBC – Renault Trafic Minibus, traffic Van, Vivaro Minibus,
Vivaro Van
• Leyland Trucks - DAF CF, XF, LF & Hybrid trucks
• London Taxis Int - TX4 taxi and hydrogen fuel cell
demonstrator
• Optare - Solo, Versa, Tempo, Olympus, Sirocco & Toro single
& double deck buses
• Smith Electric Vehicles Edison 2.5t – 4.6t., Newton 7.5 –
12t.
• Wrightbus - Midi, Maxi, Full size, Double Deck, Hybrid
Electric, Dual Purpose, Schoolbus, StreetCar & RTV buses
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PRESTIGE / NICHE LOW VOLUME
•
Aston Martin - DB9, Vantage, Lagonda, Vanquish (from
2014,2011), Cygnet (from 2011) cars
•
Bentley - Arnage, Azure, Brooklands, Continental &
Mulsanne cars
•
Caterham - Classic, Super 7, Roadsport, Academy,
Superlight & CSR
•
Coventry Prototype Panels – Saab Spyker C8 Aileron
road and race cars
•
Ginetta - F400, G50EV & G50R road cars & G20, G40,
G40 Junior, G50 & Zytek race cars
•
Lotus - Elise, Evora, Exige , Europa and new Elan and
Esprit sports cars
•
McLaren Automotive MP4-12C sports car (from 2011)
•
Morgan – Aero 8, AeroMax, Supersports, 4/4 Sport, 4
seater, Plus4, Roadster & Roadster Sport sports cars
•
Rolls Royce - Phantom & Ghost cars
•
SAIC - MGF sports car & MG6 saloon
FORMULA 1
•
McLaren racing
•
Mercedes F1 - formerly Braun
•
Red Bull
•
Williams F1
•
Renault F1
•
Force India
•
Lotus F1
•
Virgin Racing
PAGE 13
Engine manufacture
2.39 million engines manufactured in 2010 (up 16% from 2009).
Key manufacturing plants include:
• Ford, Dagenham & Bridgend
1,640,197
• BMW, Hams Hall
385,051
• Honda, Swindon
136,658
• Toyota, Deeside
114,254
• Nissan, Sunderland
105,766
• Cummins, Darlington
43,525
• VW, (Bentley) Crewe
4,791
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 14
UK Design and Engineering Skills
• Vehicle conceptualisation and styling.
• Product planning and development.
• Engine engineering.
• Vehicle body, chassis, powertrain & trim.
• Structural analysis & vehicle simulation.
• Manufacturing engineering/feasibility.
• Rapid prototyping services.
• Testing and validation, homologation.
• Special training packages (for CAE, CAM).
• Electrical and electronics, chip designing.
• Vehicle component development.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 15
UK Car Production
• Car output in 2010 increased 27.1% to 1,270,444 (2009 999,460)
• Nissan highest production at 423,262 – increase of 25% on 2009
• Export market is 75.7% of production
2000000
90%
1800000
80%
1600000
1400000
70%
1200000
1000000
60%
800000
50%
600000
400000
40%
200000
0
30%
'99
'00
'01
'02
'03
'04
'05
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
'06
'07
'08
'09
'10
PAGE 16
UK Commercial Vehicle Production
• 2010 production increased by 35.7% at 123,019 vehicles
• Vauxhall and Ford = 85.7% of all CV production
• Export market is 69.5% of production (2009 77.5%)
250000
80%
75%
200000
70%
65%
150000
60%
55%
100000
50%
45%
50000
40%
35%
0
30%
'99
'00
'01
'02
'03
'04
'05
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
'06
'07
'08
'09
'10
PAGE 17
Strengthening production volumes
Output stabilising as VMs confirm ongoing investment
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 18
Vehicle Manufacturing Productivity
(Average Selected Plants)
Whilst UK is considered a higher-cost manufacturing location
it has excellent productivity compared with other countries in
Europe
80
70
60
50
40
30
20
10
0
Avge number
vehicles per
employee
Source: World Markets Research Centre
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 19
Long-term commitment to UK plants
Announcements in 2010:
•
£1.5bn investment in engineering and manufacturing facilities by Ford.
•
£1.4bn investment at Swindon by Honda.
•
JLR to retain all three production sites, creating 1,500 new jobs.
•
£420m investment by Nissan to make LEAF and batteries.
•
McLaren Automotive MP4-12C to be produced in Woking.
•
JLR award over £2bn of supply contracts for the Range Rover Evoque.
•
Next generation Vivaro confirmed for Vauxhall’s Luton plant in 2013.
•
Expansion of the TATA European Technical Centre in Warwickshire.
•
Aston Martin Cygnet production to create 150 new jobs.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 20
Long-term commitment to UK plants
Further announcements in 2010:
• MG6 GT to be designed engineered and assembled in Longbridge.
• JLR invest £490mn in Solihull for the C-X75 hybrid supercar.
• Optare opened new 1,200 capacity bus manufacturing facility in
Yorkshire.
• Aston Martin Rapide production moving to Gaydon.
• Nissan’s £192m investment in the new Qashqai.
• BMW’s £500m investment across all it’s facilities for the new MINI
Coupe and MINI Roadster.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 21
It’s not just about vehicle manufacturers
Growing the UK supply chain:
• About 80% of all component types required for vehicle assembly
operations can be procured from UK suppliers.
• The supply chain represents about 40% of the retail price of a
passenger car.
• The UK automotive supply chain typically generates £4.5 - £5bn
of added value annually.
• Around 2,350 UK companies regard themselves as ‘automotive’
suppliers, employing around 82,000 people.
• It is estimated that every job in a vehicle’s assembly supports 7.5
elsewhere in the economy.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 22
Production Exports / Registration Imports
The UK increasingly manufactures cars to export and imports cars to drive
% of vehicle production and registrations
76% production exported - 85% registrations imported
100.00
90.00
80.00
70.00
60.00
Exports
Imports
50.00
40.00
30.00
20.00
10.00
0.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 23
UK New Car Registrations
• In 2010 the car motor parc was 31.14m (2009 31.04m)
• Diesel market remains strong for lower medium and above
• Super mini remains UK largest sector purchase (36.4%)
• MPV and 4x4 SUV market share continues to rise
• Hybrid and EV demand only slowly increasing and replaces LPG
demand – AFV registrations in 2010 were 22,865 – 1.12% market
share, of which 167 were Electric vehicles.
• Ford Fiesta, Vauxhall Astra and Ford Focus top 3 cars
• Market over past 12 months has risen 1.8% to 2.03m vehicles
matching 2009 SMMT prediction
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 24
New car registrations
Market stabilised, at lower level
•
•
The scrappage scheme helped support volumes.
Market down 7.3% to May and set to end 2011 at 1.93 million units.
New car registrations, 12 month moving annual total 2008 to 2012
2200
UK new car registrations 2008 to 2012 - actual and SMMT forecasts
rolling year totals - moving monthly annual totals
2150
registrations in thousands
2100
Actual data
SMMT forecast (Oct 10)
SMMT forecast (Jan 11)
SMMT forecast (Apr 11)
2050
2000
1950
1900
1850
1800
1750
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 25
New car registrations
Impact of scrappage scheme
•
•
Scrappage in place May 2009 to March 2010 (with some overhang).
Represented almost 15% total sales over that period.
New car registrations, 2009 to 2011, with scrappage identified (Source SMMT)
500,000
2008
SIS 2009
SIS
2009
2010
2011
450,000
2011 forecast
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
J
F
M
A
M
J
J
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
A
S
O
N
D
PAGE 26
Automotive Council – www.automotivecouncil.co.uk
An industry and government partnership
•
Create a transformed business environment for the automotive industry in
the UK to provide a more compelling investment proposition for related
industries;
•
Develop further the technology roadmaps for low carbon vehicles and
fuels, and exploit opportunities to promote the UK as a strong candidate
to develop these and other technologies;
•
Develop a stronger and more competitive automotive supply chain;
•
Provide a stronger public voice for the industry to support the value of the
industry to the UK and to global partners;
•
Ensure a strategic, continuous conversation between government and
the automotive industry in the UK.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 27
UK automotive – driving economic growth
A strong future at the heart of the low carbon agenda
•
Low carbon growth through investment in R&D and technology will
deliver long-term growth.
•
Supporting suppliers and reinvigorating the automotive supply chain.
•
Attracting international investment and growing business through trade.
•
Increasing skills to equip a new generation.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 28
Moving to a lower carbon transport network
Meeting EU legislation:
•
130g/km by 2015, the equivalent of 58mpg with a diesel engine and
52mpg in a petrol car.
•
65% of new cars averaging the 130g/km target by 2012 rising to 100%
in 2015.
•
Manufacturers exceeding the targets will be heavily fined per additional
gram of CO2 emitted, for every car registered across Europe.
•
Specialist targets for small volume and niche manufacturers.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 29
Moving to a lower carbon transport network
Co2 emissions g/km
Average new car CO2 emissions keep falling
190
185
180
175
170
165
160
155
150
145
140
97
98
99
00
01
02
03
04
05
06
07
08
09
10
Year
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 30
Why Inward Investors Choose the UK
•
Our industry capability.
•
In EU / outside Euro / Internationally aware /
globally connected / politically stable
•
English speaking, flexible and diverse labour
force.
•
Extensive, sophisticated & established
vehicle and parts cluster.
•
World-leading hub of innovation and R&D.
•
Strength and direction of the Automotive
Council and Government support for
automotive R&D and manufacturing.
•
UK positioning as a world leader in the
development, demonstration, manufacture
and use of ultra-low carbon automotive
technology.
BMW Mini
Jaguar C-X75 Prototype
now to go into production
The UK is leading the change for new transport low carbon
technologies and reducing production and usage emissions.
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 31
Society of Motor Manufacturers and Traders Limited
71 Great Peter Street London SW1P 2BN
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED