1

LLOYDS BANK RESEARCH SERIES – AUTOMOTIVE

DRIVING INNOVATION2015

22

WHAT’S IN THIS REPORTOUR CONTRIBUTORS

FOREWORD

EXECUTIVE SUMMARY

GROWTH

EMPLOYMENT

INTERNATIONAL OPPORTUNITIES

DRIVERLESS AND ELECTRIC VEHICLES

A POSITIVE OUTLOOKCLIVE HICKMAN

INNOVATIVE EXCELLENCE MIKE HAWES

HELPING BUSINESSES TO GROW, METHODOLOGY AND REFERENCES

34610121417

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David Atkinson Head of Manufacturing, SME, Lloyds Bank Commercial Banking

James Walton Director, Manufacturing, Mid-Markets, Lloyds Bank Commercial Banking

Clive Hickman Chief Executive, Manufacturing Technology Centre

3FOREWORD

FOREWORD

David Atkinson Head of Manufacturing, SME, Lloyds Bank Commercial Banking

James Walton Director, Manufacturing, Mid-Markets, Lloyds Bank Commercial Banking

Welcome to Lloyds Bank’s second annual survey of the UK automotive manufacturing industry, part of a series of reports that analyse the role of key manufacturing sectors in Britain’s economy, examining the core issues, from employment and innovation to policy and productivity.

We’d like to thank the business owners, directors and senior managers who have taken part in the research and helped us shine a light on one of the UK’s biggest and most economically important manufacturing sectors.

The UK is home to a diverse range of car manufacturers, from Nissan and Honda to Rolls-Royce and Jaguar Land Rover, and the industry as a whole employs almost 800,000 people.

We love to drive UK-made cars (the Nissan Qashqai and Vauxhall Astra are among the country’s top 10 best sellers) and so do drivers around the world: 78 per cent of all the vehicles made in the UK last year were exported.

And this report feels particularly pertinent. Seldom has an industry dominated the global news agenda like the automotive sector has in 2015.

While futuristic innovations in the field of driverless cars have fired the public’s imagination, trust was threatened when one of the world’s most respected manufacturers admitted manipulating emissions tests.

At the same time, the motor industry in the UK has continued its renaissance, having bounced back with vigour since the dark days of the late noughties economic downturn.

Production collapsed in 2009, dropping more than 30 per cent and falling below one million cars a year for the first time since 1984.1

But fast forward just five years to 2014 and UK car production hit a seven-year high, topping pre-recession levels with more than 1.5 million rolling off production lines1, and it is on course to comfortably exceed that in 2015.

UK car production hit this high in the first half of the year, with 793,642 cars built between January and June, up 0.3 per cent on the same period in 2014. The industry is also outperforming the wider manufacturing sector.

According to the Office for National Statistics, the auto industry has grown at an average rate

of 3.1 per cent every quarter since the crash.2

Of course there are issues that could put the brakes on growth, but Britain’s car industry is thriving, and a shift towards producing higher- value vehicles for the world’s growing middle classes has paid off.

This is one of the most dynamic, innovative and exciting industries in the world, with British firms at its forefront, and at Lloyds Bank we are committed to supporting its success.

We’ve laid that out in our Helping Britain Prosper plan, which states our determination to help UK businesses start up, scale up, and trade internationally to support the long-term strength of the economy.

The British automotive industry is a source of great pride and we are proud to support our customers across the supply chain as they pursue growth in the UK and overseas.

We hope you find this report as compelling as we do.

1 SMMT, Motor Industry Facts 2015, May, 20152 ONS, The economic performance of the UK’s motor vehicle manufacturing industry, September, 2015

See David Atkinson and James Walton talk about this research and the outlook for the UK automotive industry.

Watch the video now at http://resources.lloydsbank.com/insight/automotive-report/

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EXECUTIVE SUMMARY

The automotive industry has played a leading role in the UK’s economic success for generations.

Marques like Rolls-Royce, Jaguar Land Rover and Bentley are status symbols that are desired around the world and the sector makes a significant contribution to UK productivity, employment and innovation.

So by compiling the views of our automotive firms, from supply chain SMEs to multinational corporations, mid-sized business and global corporates, this report aims to support the industry with a comprehensive overview of the issues it is facing, the opportunities open to it, as well as its outlook for the months and years to come.

Manufacturers tell us they are planning significant investment in their businesses and in research and development. They are forecasting healthy growth and want to expand across the globe.

But they are also planning for fundamental changes to the industry, which are primarily being driven by advances in innovation that are making cars cleaner, safer and more fuel efficient.

Inevitably, given the international markets they operate in, global instability and uncertainty threaten to act as a drag on industry confidence. When asked what they felt were the biggest challenges for the automotive industry in the next two years, the top concern remained the global economy for the second year running, mentioned by 43 per cent of respondents in both 2014 and 2015.

China, in particular, has been a hugely successful and profitable market for premium UK marques. The slowdown in that economy has the potential to permanently impact margins, and the devaluation of the Chinese Yuan has already made imports more expensive, squeezing profits for UK firms selling their

products there. Of course, this is a trend that is not unique to this sector and is likely to impact the output and exports of UK manufacturers across the board.

One positive impact of the instability has been the move to reshore manufacturing that had previously been taken overseas, primarily to take advantage of cheaper labour costs. The savings generated are no longer as significant as they once were, and manufacturers are reshoring for a wide range of reasons, from an altruistic desire to see UK PLC succeed, to better control over quality. Looking even further into the future, the falling cost of intelligent robots has the potential to accelerate the repatriation of more car manufacturing away from low-cost locations like China, back to hi-tech factories in the UK.

Who knows what kind of cars we will be driving in 20 years’ time, and how they will be manufactured?

Whatever the future holds, we can be confident that the UK will remain a driving force in the industry.

EXECUTIVE SUMMARY

Manufacturers tell us they are planning significant investment in their businesses and in research and development. They are forecasting healthy growth and want to expand across the globe.

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KEY FINDINGS

KEY FINDINGS

GROWTH

EMPLOYMENT

INTERNATIONAL

targeting Far East/Asia, down from 41% a year ago

highlight inflexible labour markets as a threat to supply security

the number of new jobs the average automotive manufacturer plans to

create over the next two years

say lack of knowledge of international markets is a barrier to their export plans

plan to reshore manufacturing back to the UK

plan to achieve growth by developing new products

the average growth in turnover forecast by businesses over the

next two years

investing in or planning to engage new international customers

33 58% 60%

the percentage of current turnover that will be inwardly invested during

the next two years

74% 27% 56%

14% 19% 58%

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Our research surveyed managers, directors, owners and department heads at 100 English and Welsh automotive firms from throughout the supply chain.

And while they expect to continue growing, growth forecasts have fallen slightly since last year’s survey, from 18 per cent in 2014 to 14 per cent in 2015.

Plans to develop new products, enter new markets and develop existing products were also all marginally down year-on-year, while intentions to invest in infrastructure and pursue mergers and acquisitions have moved up the agenda. Indeed, the proportion of firms looking at consolidation as a route to growth grew substantially from 20 per cent in 2014 to 35 per cent this year. This move to consolidate may reflect a desire to build more robust businesses that are better placed to succeed in a world where economic instability seems to be increasing.

There was also an interesting shift in how firms plan to fund their growth. While cash reserves is still the most popular source of

funding, cited by 53 per cent of firms, it has reduced slightly from 57 per cent last year.And alternative sources of finance have grown in popularity, particularly cash flow finance, up from 38 per cent to 42 per cent, asset finance, up from 26 per cent to 37 per cent, and trade finance, up from 18 per cent to 27 per cent. This seems to reflect a growing awareness of alternative forms of finance and an increasing willingness to explore more creative funding solutions. It has also been well documented that many firms exercised great caution during the economic downturn and subsequently many built up considerable cash reserves, which they have used to invest in growth during the recovery. That capital may now have been depleted, forcing firms to seek other ways to fund their plans.

But it seems those cash reserves have been well spent by firms which have invested in infrastructure to ensure they are best placed to take advantage of new business opportunities, as and when they appear. While last year 53 per cent of firms said they

GROWTH

GROWTH

While the most prevalent source of funding is still cash reserves, its popularity has reduced slightly and alternative sources of finance have grown in popularity.

the percentage of current turnover the average business is planning to inwardly invest

over the next two years

19%

7GROWTH

had the capacity to increase production quickly should an opportunity arise to expand into a new market, this year that figure had grown to 73 per cent.

Reshoring also appears to be an ongoing trend in the UK automotive industry, which may also have helped grow capacity. Half of respondents reported that they have brought some of their manufacturing functions back to the UK after previously offshoring them, up from 45 per cent last year. On average they had reshored a significant proportion, 22 per cent of their manufacturing.

As a percentage, what is your expected business growth forecast for the next two years?

The proportion of firms looking at consolidation as a route to growth grew substantially from 20 per cent in 2014 to 35 per cent this year.

How do you plan to achieve that business growth in the next two years?

Year

2014

2015

62%58%

68%48%

39%43%

50%39%

20%35%

New product development

Entering new markets

Investment in infrastructure

Existing product investment

Mergers and acquisitions

No growth is forecast 0%

16-25%

26-35%

11-15%

Less than 5%

5-10%

36-50%

Over 50%

31%

24%

15%

9%

4% 1%13%

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Anecdotal evidence of their motivation for this shift revealed a spread of reasons, from wanting to support the UK economy and create jobs, to seeking better control over the means of production. Manufacturers also stated that the economic benefits of manufacturing overseas had diminished as labour market costs had increased abroad.

GROWTH

How are you planning to fund your business’ growth over the next two years?

58%plan to develop new products to achieve

business growth in the next two years

48%plan to enter new

markets to achieve business growth in the

next two yearsYear

2014

2015

57%53%

38%42%

26%37%

28%33%

24%27%

18%27%

30%25%

22%

12%11%

1%4%

24%

Cash reserves

Cash flow finance

Asset finance

Equity

Joint venture

Trade finance

Debt

Partnership

IPO

Not planning funded growth

9GROWTH

58%said they planned to bring part of their manufacturing back to the UK within the next two years

26%the average proportion of manufacturing they planned to reshore to the UK

10 EMPLOYMENT

EMPLOYMENT

Almost 800,000 people are employed across the UK auto industry, including 158,000 directly employed in manufacturing and 78,000 in the supply chain3.

The industry is also a key provider of apprenticeships and contributes significantly to upskilling the UK workforce. Jaguar Land Rover alone will recruit more than 200 apprentices in 20164, for example.

That’s an issue at the top of Lloyds’ agenda too. We have committed £1 million a year to the Advanced Manufacturing Technology Centre in Coventry, which is backed by the UK government and will develop more than 1,000 manufacturing apprentices aged 16-19 during the partnership. We are sure that a good proportion of these will be recruited into the automotive sector.

So far, 2015 has seen some very significant investments in job creation from within the industry. Jaguar Land Rover announced plans to create 1,300 new UK jobs as part of its £1.5bn investment in developing lightweight aluminium vehicles at its Solihull plant.5

The London Taxi Company announced a £250 million new state-of-the-art research, assembly and development facility for its next generation of ultra-low emission taxis in Coventry. It will create up to 1,000 new jobs as part of a plan to ramp up production to 36,000 vehicles a year by 2018, a ten-fold increase on current capacity.6

And Infiniti, the luxury vehicle division of Japanese automaker Nissan, announced more than 300 new jobs in Sunderland following a £250 million investment in the production of its new model, the Q30.7

And this investment in job creation looks set to continue apace, with 86 per cent of respondents planning to create new jobs in the next two years. When we asked manufacturers how many new roles they plan to create in this time, the average was 33, up from 27 when we conducted the survey this time last year.

These investments will have huge implications for the UK supply chain, where they will no doubt create more jobs and investment.At the moment, however, job creation appears to be being led by the larger firms.

The number of firms planning to create between one and 50 new jobs has actually fallen by nine per cent, though the number of businesses planning to create 51 or more new jobs is up by seven per cent. We can hope levels of job creation in smaller firms will be boosted in the longer term as they benefit from a ‘trickle down’ effect over time.

Though job creation currently appears skewed towards larger manufacturers, if the average job creation intention of 33 new roles is replicated across the UK’s estimated 2,994 automotive manufacturing firms, that would generate 84,975 new jobs over the next two years.

3 SMMT, Motor Industry Facts 2015, May, 20154 Jaguar Land Rover launches 2016 apprentice

recruitment drive, October, 20155 Jaguar Land Rover announces 1,300 new UK jobs, January, 20156 Geely to invest £250m in new London Taxi site, March, 20157 Infiniti production heralds over 300 new jobs, June, 2015

How many jobs do you plan to create in the next two years?

27

XX% 33

2014

2015

of respondents are planning to create new jobs in the next

two years

86%

51-100

11-15

None – We plan to stay the same

Don’t know

250+

101-249

25%

11%

27%

22%

12%

2%

2%

8%

16%

26-50

1-10

How many jobs do you plan to create in the next two years?

11EMPLOYMENTEMPLOYMENT

12 INTERNATIONAL OPPORTUNITIES

INTERNATIONAL OPPORTUNITIES

In which markets are you considering investing in or planning ahead to engage new international customers?

The slight fall in UK automotive firms’ growth forecasts looks likely to be a reaction to continuing global economic instability, particularly from China, where growth hit a six-year low in the first quarter of 2015.8

That is backed up by a significant drop in firms expecting to achieve business growth by entering new markets, which fell from 68 per cent last year to 48 per cent this year.

In the three decades to 2010, the powerhouse Chinese economy grew at an average of 10 per cent every year, but it has since slowed markedly, achieving 7.4 per cent in 2014.9 Looking forward, the International Monetary Fund has forecast a further fall to 6.8 per cent growth for 2015, declining to 6.3 per cent in 2016.10 That has the potential to be a significant headwind for UK car manufacturers, as China was the biggest market for British cars outside of the EU in 2014.11

Last year 137,410 UK-made cars were exported to China, or 11.5 per cent of total production.12

Only the Brits buy more British cars than the Chinese, so any slowdown in that market will be keenly felt by our car makers and the firms in their supply chain.

Despite the falling expectation of achieving growth, firms remain determined to engage with new international customers in the next two years. When asked ‘are you investing in or planning to engage new international customers in the next two years’ 74 per cent answered yes, exactly the same result as 12 months earlier.

But when they were questioned on which markets they were considering targeting, there was a big drop in those looking east. In 2014, 41 per cent of UK automotive firms

41%of firms were planning to

engage new customers in the Far East/Asia in 2014

27%of firms are planning to engage

new customers in the Far East/Asia in 2015

Year

2014

2015

47%46%

57%61%

22%20%

41%27%

20%

26%

14%19%

26%26%

27%

North America

Western Europe

Russia

The Far East/Asia

Middle East

Africa

South America

13INTERNATIONAL OPPORTUNITIES

told us they were planning to invest and engage with new customers in Asia and the Far East. By 2015, that had dropped to 27 per cent, falling by more than a third.

That is striking when compared with the rest of the world, where intentions to invest and engage in new markets have remained broadly stable. Western Europe remains the most attractive market to UK automotive firms, with almost two thirds planning to pursue opportunities there, despite the fact that the potential for a Brexit – a British exit from the EU – was flagged by 30 per cent of respondents and rated as the fourth biggest challenge facing the industry over the next two years.

Europe was followed by North America, the Middle East and South America, Russia and finally Africa, but it was Africa that saw the biggest uplift in interest, with 19 per cent of firms considering opportunities there. That’s up more than a third from 14 per cent in 2014, suggesting an increasing confidence in the economic outlook for the continent.

This is likely to be in reaction to the continent’s growing middle class, as the British industry has shifted towards higher-value vehicles in recent years. Indeed, the value of the average car exported has doubled from £10,200 in 2004 to £21,900 today.13

The African Development Bank is forecasting GDP growth of five per cent for 201614, stronger than the World Bank’s global forecast of 3.3 per cent15, though it is acknowledged that the region remains particularly vulnerable to uncertain global conditions and fluctuations in oil prices.

8 IMF downgrades global growth forecast, January, 20159 IMF downgrades global growth forecast, January, 201510 IMF downgrades global growth forecast, January, 201511 SMMT, Motor Industry Facts 2015, May, 201512 SMMT, Motor Industry Facts 2015, May, 201513 SMMT, Motor Industry Facts 2015, May, 201514 African Economic Outlook Report 201515 Global Economic Prospects 2015

The proportion of firms investing in or planning to engage new international customers remains steady at 74 per cent.

What factors are stopping you from considering investing in or planning ahead to engage new international customers?

What do you feel are the biggest challenges for the automotive industry in the next two years?

56%

44%

38%

31%

13%

6%

Complexity of logistics

Lack of time/resources

Lack of knowledge of international markets

Finding a suitable retail partner or distributor

Cash flow or available funding

Focus on domestic market

Global economy

Overseas competition

Volatility in the price of materials

Sustainability

A potential exit from the EU

43%

42%

41%

30%

30%

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UK manufacturers used the survey to demonstrate the ongoing commitment to innovation that has kept them at the forefront of the global industry. They told us they planned to invest an average 17 per cent of their firm’s current turnover in R&D over the next two years, though this is down slightly on the 21 per cent reported last year.

When asked how they plan to achieve growth, the biggest proportion, 58 per cent, told us that they plan to develop new products, though this was down slightly from 62 per cent last year. This again demonstrates some level of caution in reaction to uncertain global prospects, despite innovation being a tried-and-tested route for UK car makers and one where they continue to lead the world.

For example, in September Jaguar Land Rover unveiled new low and zero emission engines that it developed in house, which are capable of producing twice the power of any electric-motorgenerator in production

anywhere in the world.16 The company is also taking a lead in the development of ever lighter and more fuel-efficient vehicles, as mentioned earlier.

Electric cars and driverless cars represent the other great race to innovate, with a number of technology companies looking to steal a march on automotive firms in this field.

Search engine giant Google has already made headlines after unveiling prototypes of its self-driving car17 and taxi service Uber is also said to be developing its own version of the technology.18 Apple is reportedly planning to launch its own electric car as soon as 2019.19

But UK manufacturers are taking a different tack, incrementally introducing autonomous features, some of which are already on the roads.

And the UK’s legislative landscape means we have a significant advantage over our European neighbours.

Testing is already underway in many parts of the country, which is only possible because

DRIVERLESS AND ELECTRIC VEHICLES

DRIVERLESS AND ELECTRIC VEHICLES

Electric cars and driverless cars represent the other great race to innovate, with a number of technology companies looking to steal a march on automotive firms in this field.

36%of those asked plan

to develop driverless vehicle technology

52%plan to develop

low-carbon or electric vehicle technology

15

Over the next 12 months

17%

Over the next 1-2 years

56%

Over the next 2-3 years

22%

Over the next 3-5 years

6%

More than five years’ time

0%

the UK never ratified the Vienna Convention on Road Traffic, which means autonomous vehicles can be tested on public roads here without the need for any new legislation.20

This type of technology is still very much in the testing phase and fully autonomous cars are unlikely to be seen on the roads for at least a decade, which might help explain why smaller manufacturers don’t appear to be approaching the issue with a great deal of urgency.

We asked firms whether they are planning to upskill their workforce or change their business model to develop driverless vehicle technology for the first time this year and, while 36 per cent said yes, 19 per cent were unsure and 45 per cent said no. Of those that did see opportunities, only a fifth plan to make changes within a year but the majority plan to do so within the next three years.

The number of firms that say they are planning to upskill their workforce or change their business model to develop low carbon or electric vehicle technology fell slightly year-on-year from 63 per cent to 52 per cent. And, of those firms which do harbour these plans, they appear to feel less pressure to activate them than they did a year ago.

DRIVERLESS AND ELECTRIC VEHICLES

Are you planning to upskill or change your processes or business model to develop driverless vehicle technology?

When will you beign to upskill or change your processes or business model to develop driverless vehicle technology?

No

Yes

Not sure

36%

45%

19%

16 DRIVERLESS AND ELECTRIC VEHICLES

When do you plan to upskill/change your processes/business model to develop low carbon or electric vehicle technology?

Fewer firms are planning to upskill their workforce or change their processes or business model to develop low carbon or electric vehicle technology within the next year than in last year’s survey, while growing numbers of manufacturers aren’t planning to start this activity until one to three years have passed.

This is likely to be a reflection of the size of investment needed to develop driverless systems, which has meant this innovative activity is the preserve of a small number of wealthy multinational corporations.

However, once this technology starts to become more widely adopted, there looks set to be huge benefits for the supply chain.

A recent KPMG report forecast that connected and autonomous vehicles could create an additional 320,000 jobs in the UK by 2030, 25,000 of which would be in automotive manufacturing.21

16 Jaguar Land Rover Reveals Pioneering Low And Zero Emissions Powertrain Research, September, 2015

17 Google self-driving car project, Google, May, 201518 Here’s your first look at Uber’s test car, May, 201519 Apple targets electric-car shipping date for 2019, September, 201520 KPMG, Connected and Autonomous Vehicles – The UK Economic

Opportunity, March, 201521 KPMG, Connected and Autonomous Vehicles – The UK Economic

Opportunity, March, 2015

63%were planning to upskill or

change processes or business model to develop low-carbon or

electric vehicle technology in 2014

52%are planning to upskill or

change processes or business model to develop low-carbon or

electric vehicle technology in 2015

27%

48%

23%

2%

48%

Over the next 12 months

Over the next 1-2 years

Over the next 2-3 years

Over the next 3-5 years

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Clive Hickman Chief Executive,Manufacturing Technology Centre

A POSITIVE OUTLOOK

The UK automotive industry sits at a key point in its development and I believe there are three issues that the sector needs to have at the forefront of its strategy.

Firstly, reshoring is a significant opportunity. Central to this will be the ability to reengineer the manufacturing processes so different vehicles or engines can be produced on the same lines. This kind of manufacturing system will mean adopting intelligent automation with robots that can operate independently, as well as adaptive fixtures and tools. The flexibility this creates will cut costs, reduce the size of factories, boost production volumes and generate massive logistics savings, slashing energy consumption and emissions.

Secondly, lightweighting and vehicle emissions. A big opportunity to reduce vehicle weight and therefore emissions is through the adoption of additive and net-shape manufacturing processes. Formula 1 teams are already manufacturing exhaust manifolds by 3D printing metallic components as the technique enables complex geometries that would not be possible with conventional technologies.

That helps cut emissions and weight and these principles can be adopted for many other automotive components, offering a fantastic opportunity for UK vehicle manufacturers.

Lastly, skills. The adoption of these new technologies will mean we need more highly-skilled technicians, competent in robotic technology, adaptive fixturing, lasers, optics and electron-beam applications. To some extent this will be a chicken-and-egg scenario: if we don’t train in these technologies, they won’t gain widespread adoption in UK, and if we don’t adopt the technologies, there will be no need for the training.

What we can be sure of is that if we don’t do this in the UK, others around the world will and we will lose the initiative.

MTC, in collaboration with Lloyds Bank and the UK government, is taking the lead on this issue by creating the Lloyds Bank Advanced Manufacturing Training Centre.

If we don’t train apprentices and graduates to use these advanced manufacturing processes now, we will still have a skills gap in five years’ time.

A POSITIVE OUTLOOK

If we don’t train apprentices and graduates to use these advanced manufacturing processes now, we will still have a skills gap in five years’ time.

18 INNOVATIVE EXCELLENCE18

Mike HawesChief Executive, Society of Motor Manufacturers and Traders (SMMT)

INNOVATIVE EXCELLENCE

Lloyds Bank’s second survey of the UK automotive manufacturing industry highlights some of the significant opportunities ahead – not only in terms of economic prosperity, technological innovation and employment potential in Britain, but the prospect for growth across the globe.

A strong domestic supply chain is crucial to the success of this industry – and to attracting inward investment. SMMT analysis forecasts UK vehicle manufacturing will hit an all-time high of two million units by 2020, giving British suppliers a tremendous market opportunity. To support this growth, up to 28,000 additional jobs will be needed in the supply chain – in addition to those that could be created by an existing £6 billion a year re-shoring opportunity to deliver on contracts currently sourced overseas.

Looking further afield to a key global market referenced in this report, despite China’s economic slowdown there are still multiple opportunities for UK companies, in particular the consumer-friendly tax breaks helping to stimulate sales of alternatively-fuelled and small-engined cars. British businesses are also broadening their horizons by entering new territories such as Nigeria and Iran, just two emerging markets to which SMMT is planning trade missions in 2016.

The UK is seen internationally as a centre of innovation: home to 13 R&D centres, seven of the world’s 10 Formula One teams and 16 of the top 20 global automotive suppliers. We also have a unique opportunity to lead the development of connected and autonomous vehicles. A recent KPMG report for SMMT put this opportunity at more than £51 billion per annum. The UK has strong regulatory advantages, with on-road driverless car pilots needing only insurance – and this, together with a £100 million government-industry matched fund that is already in place, makes the case for the UK compelling.

To maintain this position of innovative excellence, industry must grasp the opportunities presented by these breakthrough technologies and secure the benefits for the UK economy and society.

A strong domestic supply chain is crucial to the success of this industry – and to attracting inward investment.

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HELPING BUSINESSES TO GROW

HELPING BUSINESSES TO GROW, METHODOLOGY AND REFERENCES 19

Our financial teams have the experience and know-how to help make your growth, investment and export plans a reality. We’re proud to work closely with some of the leading automotive businesses in England and Wales, and can tailor a range of solutions for your business too, including:

• Trade finance• Cashflow finance• Treasury and risk management services• Bonds, guarantees and collections• Structured finance solutions• Cash management• Asset finance

For more information, get in touch with us.

DAVID ATKINSONHEAD OF MANUFACTURING, SME, LLOYDS BANK COMMERCIAL BANKING 07764 625666 david.atkinson@lloydsbanking.com

JAMES WALTONDIRECTOR, MANUFACTURING, MID-MARKETS, LLOYDS BANK COMMERCIAL BANKING07500 920861 james.a.walton@lloydsbanking.com

STUART APPERLEYRELATIONSHIP DIRECTOR, GLOBAL CORPORATES, LLOYDS BANK COMMERCIAL BANKING020 7158 2929 stuart.apperley@lloydsbanking.com

METHODOLOGY AND REFERENCES

MethodologyField research for this report was undertaken in September 2015 by Coleman Parkes Research. To gather representative data from this diverse industry, a broad cross-section of 100 automotive manufacturers in England and Wales was interviewed from companies ranging in size, from less than £25m, £25m to £750m, and more than £750m annual turnover. Product type was limited to automotive producers and manufacturers.

Business owners, managers, senior managers, directors and department heads took part in the survey, with a higher proportion of respondents from small and medium enterprises and mid-market firms. Our survey questions focused on growth and export plans, job creation, investment, international markets, electric vehicle manufacturing and challenges and opportunities.

References:

• SMMT, Motor Industry Facts 2015, May, 2015• ONS, The economic performance of the UK’s motor

vehicle manufacturing industry, September, 2015 • Jaguar Land Rover launches 2016 apprentice recruitment

drive, October, 2015• Jaguar Land Rover announces 1,300 new UK jobs, January, 2015 • Geely to invest £250m in new London taxi site, March, 2015• Infiniti production heralds over 300 new jobs, June, 2015• IMF downgrades global growth forecast, January, 2015• African Economic Outlook Report 2015 • Global Economic Prospects 2015 • Jaguar Land Rover reveals pioneering low and zero

emissions powertrain research, September, 2015• Google self-driving car project, Google, May, 2015• Here’s your first look at Uber’s test car, May, 2015 • Apple targets electric-car shipping date for 2019, September, 2015• KPMG, Connected and Autonomous Vehicles – The UK Economic

Opportunity, March, 2015

Information is correct at time of printing: November 2015.

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For more information

Important information.Lloyds Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065.Telephone: 020 7626 1500. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278. Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all Business customers will be covered.

Issue date: December 2015

Lloyds report: 2015LBGAUTO

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