Sandy Burgess Chief Executive The Scottish Motor Trade Association • Member owned, member driven and member led. • Represents almost 1,000 members sites, with turnovers ranging from several thousands to a growing number who count their turnover in billions. • We operate 4 subsidiary brands. • Trading Partners our buying group, now buying over £1,000,000 worth of tyres per annum. • Scotsure MBI our used vehicle warranty company, sells over 6,000 policies per annum via our members. • Skills Solutions our training arm which has over 340 Modern Apprentices all employed in our sector within Scotland. • MOT QMS our MOT Quality Management System where we offer compliance checking against the guidelines set out by DVSA, safeguarding our member and the consumer. The Scottish motor business landscape • Scottish new car market traditionally around 10% of the UK total market at around 245,000. • Scottish new car market stable on upward travel last three years. • Scottish market more predictable in that we have a higher proportion of private purchasers against rest of UK. • Scotland’s roads have an estimated 2.7 million vehicles using them. • The Motability share of Scotland’s new car market is over 12% per annum and rising. • All Scottish registration numbers start with the prefix S. • There are over 4,700 separate enterprises operating within the Scottish business landscape who are registered as automotive businesses. • Electric vehicle ownership rising very slowly (September share 144 units or 0.33%) • Used market very strong especially in the late plate nearly new market. • Dominance across central belt and north east of Scotland by traditional “family business” units such as; • Arnold Clark • There are over 45,000 employed within these businesses. • Parks Motor Group • Automotive sector accounts for almost 6% of Scotland’s GDP with over £12 billion. • John Clark Motor Group • We have 2,007 active MOT testing stations across Scotland and the Islands, we also have a number of islands who enjoy exclusion rights! • Eastern Western Motor Group • Macrae & Dick • Phoenix Car Company The Automotive Industry and the UK Economy 2014 full year Marque Nissan Sunderland Land Rover Halewood No. manufactured 500,238 374,355 Vauxhall Ellesmere Port 178,993 Bentley Crewe Jaguar Castle Bromwich 172,215 121,799 Toyota Burnaston Land Rover Solihull 77,836 75,152 10,614 Honda Swindon Source: SMMT PIE data MINI Oxford UK car manufacturing output by site (>10k) 2014 – 1,528,148 (+1.2%) THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5 UK car manufacturing output by site (<10k) Marque McLaren Woking 4,381 LTC Coventry MG Longbridge No. manufactured 3,967 Caterham Dartford 3,054 1,751 Morgan Malvern Lotus Hethel 1,492 1,376 464 Aston Martin Gaydon Rolls-Royce Goodwood 461 Source: SMMT PIE data THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6 UK commercial vehicle manufacturing by site 2014 – 70,010 (-20.1%) Leyland Trucks Leyland Marque Optare bus Leeds No. manufactured 43,567 3,967 Dennis Eagle Trucks Warwick Land Rover Light 4x4 Solihull 3,054 1,751 1,492 MINI Van Oxford Alexander Dennis Bus/Coach Guildford 1,376 IBC Van + minibus Luton 464 Source: SMMT PIE data THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7 UK engine manufacture by site 2014 – 2,394,688 (-6.2%) Bentley Crewe Marque Nissan Sunderland No. manufactured 1,533,280 279,385 226,618 Toyota Deeside 226,133 JLR i54 Honda Swindon 118,638 10,614 BMW Hams Hall N/A Ford Dagenham Ford Bridgend Source: SMMT PIE data THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8 Bringing driverless vehicles to market THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9 Level L0 Driver Defined levels of automation Driver only Assisted Driver continuously performs the longitudinal or lateral dynamic driving task Automation Driver continuously in control of speed and direction L1 No intervening vehicle system active The other driving task is performed by the system Example: THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED Park Assist L2 L3 Partial Automation Conditional automation Driver must monitor the dynamic driving task and the driving environment at all times Driver does not need to monitor the dynamic driving task nor the driving environment at all times; must always be in a position to resume control System performs longitudinal and lateral driving task in a defined use case Traffic Jam Assist System performs longitudinal and lateral driving task in a defined use case. Recognises its performance limits and requests driver to resume the dynamic driving task with sufficient time margin Highway Patrol L4 High automation Driver is not required during defined use case System performs the lateral and longitudinal dynamic driving task in all situations in a defined use case Urban Automated Driving L5 Full automation System performs the lateral and longitudinal dynamic driving task in all situations encountered during the entire journey. No driver required Full end-to-end journey PAGE 10 Four overarching challenges Technology Policy Behavioural Business models THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11 Impact of connected and autonomous vehicles in 2030 +£51bn +320,000 Additional jobs impact +1% Impact on GDP (2030) Value added annually by 2030 (at 2014 prices) JOBS +25,000 Jobs in automotive manufacturing created +25,000 Serious accidents prevented (2014-2030) THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED +2,500 Lives saved (2014-2030) PAGE 12 CO2 The story so far How does this relate? The relevance? • The motor vehicle opposite was built in? • 1903 • So what’s the relevance? • It’s an ELECTRIC car! • The internal combustion engine has lots of miles and years left to run. • The future is exciting, here’s to the next 112 years with the Scottish Motor Trade Association.