Mike Hawes - SMMT
Transcript of Mike Hawes - SMMT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 1
Mike Hawes
Chief Executive
SMMT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2
Agenda
Session 1
10:10 – 10:25
10:25 – 10:40
10:40 – 11:00
11:00 – 11:15
11:15 – 11:25
Automotive Council activities:
Automotive Investment Organisation
opportunities update
Technology Group update
Strengthening the upstream supply chain
Business Environment and Skills Group update
Panel discussion
Lawrence Davies, Deputy CEO,
Automotive Investment Organisation.
Jerry Hardcastle, General Manager –
Innovation and Performance Projects,
Nissan and AC Technology Group
Chairman
Prof Jon King, Manager, Research and
Development, Tata Steel
Tony Walker, Deputy Managing Director
- Corporate, Production Control, Toyota
UK
All (Mike Hawes facilitator)
11:25 – 11:55
Coffee break and networking
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 3
Agenda
Session 2
11:55 – 12:10
12:10 - 12:25
12:25 – 12:40
12:40 – 13:10
13:10 – 13:20
Industry Outlook:
OEM experience and supplier expectations:
UK automotive industry – Building confidence
and capability
Building successful APC partnerships
UK Investment: Cosworth case study
Autonomous driving and the connected car
Panel discussion and closing remarks
Michael Mychajluk, Supply Chain and
External Engagement Manager,
Jaguar Land Rover
James Thompson, Purchasing Manager
- Powertrain, Ford Motor Company
Kirsty Andrew, Sales Director, Cosworth
Hugh Dickerson, Head of Automotive,
All (Mike Hawes facilitator)
13:20 – 14:00 Lunch and networking
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4
The UK Automotive Sector
+730,000 jobs
dependent on
automotive
140,000 in
manufacturing
£60.5bn turnover £12bn value added
Industry annually invests
in R&D
2.5 million engines
Over 1.5 million cars annually
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5
UK export market diversity a key strength
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6
Overview UK automotive supply chain
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7
European recovery under way
• September 2014 was the 13th consecutive month with year-on-year rises in EU registrations.
• Reflects pent-up demand returning and major new model launches, continued availability of cheap finance and government intervention in some markets
• 9M/14: EU = +6.4% y-o-y, with Spain +17.2%, UK +9.1%; modest growth in France, Italy and Germany
Source: ACEA
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8
Global new car market up
• Global car markets up 2.62m units (4.6%) YTD
• The US, Western Europe and especially Asia made positive contributions
• Eastern Europe and Latin America are down
• 2014 forecast of 78.3m units (+3.8%)
Source: Polk
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9
0.0
0.5
1.0
1.5
2.0
2.5 1
97
0
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
Vo
lum
e /
mill
ion
s
UK car manufacture (1970-present)
Car manufacture Forecast
UK automotive manufacturing strengthening
2017 target
+2.0m
2013 results
1.5m
1972 peak
1.9m
Source: SMMT PIE data
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10
UK Competitiveness
• UK economy provides a solid platform for
industry growth
• UK automotive manufacturing performing strongly with significant investment by industry
• Highly skilled and flexible labour force - sector productivity growth outstripping rest of the economy at c.6% p.a
• Supported by a large and growing domestic market
• Government fully engaged and recognises importance of sector
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11
The Environmental Challenge
Source: ICCT 2013
Global CO2 Regulation
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 12
Air quality – UK context
• Increased media & political attention on air quality – diesels in spotlight
• Automotive industry made significant investments in technology to address CO2 and
air quality driven by Euro 6
• Integrated approach needed involving all stakeholders
Key policy challenges o Nitrogen dioxide emissions o Ultra-Low Emission Zone by 2020 o Implications for future vehicle taxation o Emissions legislation and standard
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 13
SMMT 2015 MANIFESTO PRIORITIES
• Cross-party commitment to long-term industrial strategy: Ensuring that existing mechanisms to support ambitions for industrial strategy, such as the Automotive Council are maintained in the next Parliament and beyond.
• Creating the right conditions for investment: Implementing policies that create an
internationally competitive business environment for the automotive industry, making the UK a leading location for investment.
• Positioning the UK as a global leader on innovation: Enhancing support measures for research and development that bolster the UK’s manufacturing base and promote investment in new technologies – including design, powertrain and connectivity
• Supporting ultra-low emission vehicles and a strong, sustainable vehicle market: Guaranteeing funding and support for ultra-low emission vehicles and committing to a long-term, consistent and coordinated approach on vehicle taxation.
• Maintaining a strong UK voice in Europe: The UK’s membership of the European Union is fundamental to the current and future success of the UK automotive industry. The next government should ensure that the UK maintains a strong voice in Europe.
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 14
Communications & external perceptions