Barlow

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Published on November 15, 2007

Author: Techy_Guy

Source: authorstream.com

Issues Facing the UK Automotive Industry:  Issues Facing the UK Automotive Industry Professor Neil Barlow Chief Executive, Northwest Automotive Alliance Background:  Background Northwest Automotive Alliance (NAA) was established in 2004 to support the automotive manufacturing industry in the Northwest of England NAA is a cluster organisation based on an alliance of major companies in the Northwest including Leyland Trucks (Paccar), Vauxhall Motors (General Motors), Jaguar/Land Rover (Ford) and Bentley Motors (Volkswagen) Strategy focussed on a number of areas: Supply chain development Workforce development Innovation Internationalisation Overview of Presentation:  Overview of Presentation The Global Market Challenges Facing the Industry UK Response The Future World Passenger Car Production:  World Passenger Car Production Proportion of World Market:  Proportion of World Market Car Production (2005):  Car Production (2005) Net Profit/Loss 2005 :  Net Profit/Loss 2005 UK Sector:  UK Sector The UK has the most diverse range of car producers of any country in the world – General Motors, Ford, Nissan, Toyota, BMW, Volkswagen, Honda and Peugeot. UK has a wide range of specialist producers serving niche markets such as sports and track day cars, classic replicas and even an amphibious car manufacturer Over a thousand automotive component suppliers are manufacturing in the UK The automotive manufacturing sector contributes around £8.4bn added value to the economy which accounts for 1.1% of UK GDP The industry in the UK employs some 237,000 people and has an annual turnover of some £46bn It accounts for 9.5% of total UK exports (72% of total UK car production is exported). Global Issues:  Global Issues Over capacity Legislation Competition UK Issues:  UK Issues The majority of UK based vehicle manufacturers including those with outstanding productivity records are making losses There is a major switch by VMs and tier one suppliers to source parts and materials from low cost countries Many UK suppliers are falling short in key respects: inadequate investment in both plant and equipment and product development poor customer focus shortage of skills UK Employment Law makes it easier to close UK manufacturing plants ??? Energy costs increasing substantially Location re rest of Europe – we are still an island ! UK Response AIGT Report 2002: :  UK Response AIGT Report 2002: National Supply Chain Groups Automotive Academy Centres of Excellence Foresight Vehicle Programme Supply Chain Groups:  Supply Chain Groups £15m support from DTI matched by £15m company cash/in-kind Support for a host company to work with it’s UK based suppliers to improve the competitiveness of the whole supply chain (minimum of 8 suppliers) Main output – improved value added and QCD improvements 50 Supply chain group programmes established with some 400 + companies participating Averaging an eight fold return on investment per supply chain project Automotive Academy:  Automotive Academy Industry led Set up to promote globally competitive standards of training and skill development for the UK automotive industry Developed specific programmes for the industry: Lean Manufacturing Business Improvement Techniques Team Leader Training Graduate Development Automotive Leaders Executive Programme ISO/TS16949 Working with providers to build their capacity and capability to deliver these programmes in UK regions Centres of Excellence:  Centres of Excellence Low Carbon and Fuel Cell Technologies, Transport Telematics and Technologies for Sustainable Mobility. Foresight Vehicle Programme:  Foresight Vehicle Programme Engine/Powertrain Hybrid, Electric, Alternatively Fuelled Vehicles Software, Sensors, Electronics and Telematics Advanced Structures and Materials Design and Manufacturing Processes The Future More complex cars, built faster and cheaper: :  The Future More complex cars, built faster and cheaper: Restructuring of the supply chain - more integration, mergers and alliances More outsourcing of sub-assembly Continued development of flex plants More differentiated product More use of common platforms Shorter lead times Diversification into finance, insurance, car hire, servicing and leasing Future Hybrid Vehicle ????:  Future Hybrid Vehicle ???? Any Questions ?:  Any Questions ?

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