UK Trade and Investment Seminar Frankfurt, 24 February 2005 UK Government assistance to the Auto Ind

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UK Trade and Investment SeminarFrankfurt, 24
February 2005 UK Government assistance to the
Auto Industry Francis EvansAutomotive Unit
Department of Trade and IndustryBirmingham
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CONTENT

• The UK approach
• UK opportunities
• Elements of competitiveness
• Specific support programmes
• Support for capital investment
• Technology Foresight Vehicle
• Low-carbon technologies LowCVP
• Supplier development Supply Chain Groups
• Skills the Automotive Academy
• Regional support
• Motorsport

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THE UK APPROACH

• Lowest level of State Aid in the EU, but . . .
• Low social costs (10 pension contributions)
• Low unemployment
• Competitive logistics costs
• Flexible labour practices good mobility of
  labour
• Outstanding industrial relations
• No national champion all companies are of
  equal status
• Partnership on regulations voluntary approach
• A global outlook

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UKS INVESTMENT POSITION
Within Europe, UK attracts

• 45 of US investment
• 43 of Japanese investment
• 15 of German investment
• 50 of Korean investment

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RECENT INVESTMENTS

• Honda 2,2l diesel engine at Swindon
• BMW 40m at Swindon and 400m at Hams Hall
• Nissan to produce new Tone at Sunderland
• Ford/Getrag 200m for new 6-speed gearbox at
  Halewood
• Toyota 50m at Burnaston, additional 60k units

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UK CAR AND CV PRODUCTION AND REGISTRATIONS
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UK OPPORTUNITIES

• Tradition of automotive engineering
• Open door investment policy
• 8 volume vehicle manufacturers
• 17 of worlds top 20 component manufacturers
• Europes most productive car and truck plants
• Contributes 1.1 of GDP, 9.5 of exports, 6.2 of
  manufacturing value added
• Leading position in motorsport
• World class design engineers
• Powertrain specialists 3.5m units annually plus
  development and calibration capability

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ELEMENTS OF COMPETITIVENESS
Technology and innovation
Company improvement
Education and skills
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SUPPORT FOR INVESTMENT

• Selective Finance for Investment in England
  (SFIE)
• Amount varies depending on location
• Grant towards investment costs
• Amount of grant in the range 5-20 of the amount
  invested
• Reducing in importance in the UK and the rest of
  the EU 15
• http//www.dti.gov.uk/regionalinvestment

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SUPPORT FOR TECHNOLOGY

• Foresight Vehicle programme
• Grants available depend on project, grants are
  accessed from a wide range of sources
• Help with finding partners
• Amount of grant in the range 20-40 of the amount
  invested in research and development
• The programme is led by the UK automotive trade
  association, the SMMT (Society of Motor
  Manufacturers and Traders)
• http//www.foresightvehicle.org.uk

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SUPPORT FOR LOW-CARBON INITIATIVES

• Low Carbon Vehicle Partnership
• Industry-led initiative between all major
  UK-based vehicle manufacturers and suppliers
• No preferred technology collaboration to develop
  all low-carbon transport solutions
• Access to grants and special programmes, e.g. the
  Low Carbon Car Challenge
• Led the recent introduction of eco-labelling
• http//www.lowcvp.org.uk

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SUPPORT FOR SUPPLIER DEVELOPMENT

• Supply Chain Groups programme
• Grants available from 120K to 180K depending on
  project duration 18 to 36 months
• Customer must be working to develop at least 8
  UK-based suppliers
• Objective of the programme will depend on
  customer priorities
• Overall aim is to improve competitiveness of the
  UK supply base and industry
• http//www.supplychaingroups.co.uk

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SUPPORT FOR SKILLS DEVELOPMENT

• The Automotive Academy
• Improving the supply of skills relevant to the
  automotive sector including new qualifications
• Focus on manufacturing improvement techniques and
  vocational education
• Supported by all major UK-based manufacturers
• Overall aim is to improve quantity and quality of
  new recruits and existing staff in the industry
• http//www.automotiveacademy.co.uk

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REGIONAL SUPPORT

• Devolution of power to Scotland, Wales and
  Northern Ireland
• Increasing role for regional agencies in England
• National collaboration through Supply Chain
  Groups and Auto Academy
• Regional priorities and support programmes
• Industry collaboration within regions has been
  successful in raising the priority of automotive
• 4 regional agencies plus DTI working jointly on
  motorsport
• http//www.autoindustry.co.uk/regions

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MOTORSPORT DEVELOPMENT

• The Motorsport Development Board
• An industry-led collaboration involving both the
  industry and sport
• Government support of 16m covering a range of
  activities
• Focus on exploiting and retaining the UKs global
  leadership of this sector
• Connects the motorsport sector to the objectives
  of other engineering-based industries
• http//www.gmuweb.com

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www.autoindustry.co.uk