Welsh Automotive Forum Industry Summit

Paul EverittChief executive

SMMT

New car and LCV demandRecovery in new car demand, linked to SIS.

Demand up 28.7% YTD, but to fall overall in 2010 to 18.2mn.

LCV demand fallen sharply. Now stable at low level. +8.8% YTD.

UK new car and LCV registrations (Source SMMT)

1.70

1.90

2.10

2.30

2.50

2.70

05 06 07 08 09 10

New car registrations. Mns

Car regs Forecast @ Jan '10

175

200

225

250

275

300

325

350

05 06 07 08 09 10

New LCV registrations, '000s

LCV regs Forecast @ Jan '10

New car and CV outputRecession caused sharp drop in vehicle output.

Car production recovering, due to SIS. Up 64.8% in January.

CV volumes down 55% in 2009. Output stable, at low level.

UK car and CV production (Source SMMT)

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

05 06 07 08 09 10

Car production, Mns

Car total Export

50

100

150

200

250

05 06 07 08 09 10

CV production, '000s

CV Total Export

Automotive Council

The Automotive Council exists to help:

Create a transformed business environment in the UK to provide a more compelling investment proposition for the related industries.

Develop further the technology roadmaps for low carbon vehicles and fuels, and exploit opportunities to promote the UK as a strong candidate to develop these and other technologies.

Develop a stronger and more competitive supply chain.

Provide a stronger public voice for the industry to support the value of the industry to the UK and to global partners.

Ensure a strategic, continuous conversation between Government and the Automotive industry.

In addition the Automotive Council will address any matters agreed by the Chairmen.

Automotive Council

The Automotive Council Members:

Richard Parry Jones (Chair)Dr Ralph Speth Jaguar Land RoverGordon Murray (Deputy) Gordon Murray DesignJoe Greenwell FordBill Parfitt GMKenneth Keir HondaTrevor Mann NissanHermann Kaess Robert BoschNigel Stein GKN AutoJürgen Hedrich BMWGraham Smith ToyotaJon Carling Aston MartinFranz-­Josef Paefgen BentleyDave Keene RDM Automotive/Niche Vehicles GroupGwenne Henricks Caterpillar IncAndrea Paver Leyland TrucksJerry Hardcastle Nissan (Chair of Technology Council)Barry Dodd Addpower Technologies/ GSM Group Paul Everitt SMMTJohn Miles ARUPDave Osborne UNITEBrian Collins Chief Scientist, BIS & DfT

Technology Council

The Technology Council aims to help:

Identify opportunities to provide a more compelling investment proposition for automotive R&D in the UK versus other countries.

Agree on the technology roadmaps for low carbon vehicles and fuels, and exploit opportunities to promote the UK as a strong candidate to develop these technologies.

Develop a stronger supply base through joint research on focused areas driven by a common agenda and by facilitating collaboration opportunities.

In addition the Technology Group will address any matters agreed by the Automotive Council and Supply Chain Group.

Technology Council

The Technology Council Members:

Jerry Hardcastle (Chair) NissanKeith Austin Greater London AuthorityJohn Batterbee Energy Technologies InstituteJon Beasley GKNHugh Blaxill MAHLE PowertrainTudor Brown ARM HoldingsCatherine Coates EPSRCJohn Cooper BPRobert Evans CenexErik Fairbairn InfrachangeSteve Faulkner CaterpillarNick Fell TATAMiguel Fragoso Millbrook Proving GroundGeorge Gillespie MIRAAndrew Graves University of BathBrian Gush Bentley Motors Tony Harper Jaguar Land Rover Graham Hoare FordDavid Hytch Greater Manchester Transport AuthorityNeville Jackson Ricardo Allan McKenzie SMMTCharles Morgan MorganDon Newton AxeonTheo Quick LogicaTony Spillane SAIC Motor UKStephen Stacey ToyotaJim sumner OptareCalvey Taylor-­‐Haw ElektomotiveHenri Winand Intelligent Energy Simon Wood Lotus Engineering David Densley Scottish & Southern EnergyBrian Collins BIS/DfT

Technology Council

Technology Roadmap

Mass Market EV TechnologyNiche EVs

20202000 2010 2030

Full Hybrid

Micro/Mild Hybrid

130 95 TBDEU Fleet Average CO2 Targets (g/km)

2040

Plug-In Hybrid

IC Engine and Transmission innovations (gasoline/diesel/gas/renewables)

Demonstrators Fuel Cell Vehicle

DemonstratorsCharging Infrastructure

H2 Infrastructure

Energy Storage Breakthrough

Energy Storage Breakthrough

Vehicle Weight and Drag Reduction

Fuel Cell & H2 Supply/Storage Breakthrough

Technology CouncilCommon Research Agenda

Technology Council

The Technology Council aims to help:

Supply Chain Council

The Supply Chain Council exists to help:

Build consensus on the challenges in the UK Supply Chain.

Enhance the dialogue between OEMs, Tier 1s and the supply chain on present and future business priorities.

Review the Technology Roadmap and develop a high level UK supply chain technology vision.

Engage with those responsible for existing training and support budgets to seek to reflect these priorities.

In addition the Supply Chain Group will address any matters agreed by the Automotive Council and the Technology Group.

Supply Chain Council

The Supply Chain Council Members:

Bill Parfitt (Chair) GMNigel Stein (Deputy Chair) GKN AutomotiveMark Adams ToyotaDavid Bell JCBMike Carr East Midlands Development AgencyGeoff Dale Industry ForumJames Davies Calsonic KanseiSimon Griffiths MAS West Midlands Ian Harnett JLRMatthias Holweg Cambridge UniversityJon King Corus Automotive EngineeringIndro Mukerjee C-­MAC Micro-­TechnologyJim Rickard MichelinKeith Smith Plastic Products InternationalDermot Sterne StadcoPeter Stewart TI AutomotiveYung Tran SMMTEngelbert Wimmer PA ConsultingJohn Wingfield Flambeau Europlast

SMMT Supply Chain Report

Independent report on UK Supply Chain

Key Findings:

There is a genuine wish to increase UK sourcing, despite:-­ Hollowing out of UK industry.-­ And structural problems in the UK.

Opportunities still exist for the UK.

Three key reasons:-­ To reduce logistics costs & strain.-­ To reduce exchange rates risks.-­ To support new ULC technologies

SMMT Supply Chain ReportSupply-­side gaps exist in new and old technologies :

Key gaps in current technology:

-­ Castings and forgings;; alloy wheels, alternators & /starter motors, brake components, fasteners, plastic mouldings, stampings, sheet steel, transmission components, wiring.

-­ Advanced air-­conditioning, ECUs in general, safety (esp.airbags), satellite navigation.

New, low carbon technology will require a new supply chain,not just for batteries, but also:

-­ Wiring, motors, reducers, inverters.

-­ Plus plastic and metal components which could be supplied from existing suppliers.

Technology Strategy Board

Ultra Low Carbon Demonstrator Programme

£25m invested between DfT/OLEV, AWM, ONE, SEEDA andTSB to put 340 cars on the road by late 2009/early 2010

Outputs: -­vehicle logging.

Exposure to multiple drivers and drive cycles.Opportunity to understand customer perceptions and concerns.Interface challenges with Infrastructure.Inform future demonstrator activity within LCV IDP.

Office for Low Emission VehiclesPlug-­in Car Grant

25% up to a maximum of £5,000This amount will be reviewed in Q1 2012 with any potential changes coming into effect April 2012

Commencing January 2011The funding can only be paid once the vehicle is delivered so this does allow pre-­

to March 2014There is up to £230m -­ split across financial years. Current thinking is to manage any potential shortfall with a mechanism similar to that being used to wind down scrappage.

Office for Low Emission Vehicles

Plugged In Places EV Infrastructure Framework

Up to £30m matched funding available.

Supporting infrastructure implementation and learning across the UK.

3 locations already announced representing 11,000 charge points installed within 3 years: -­ London -­ Milton Keynes-­ North East

Second round of bids to take place in Sept 2010.

Technology Strategy Board

Integrated Delivery Programme4 Ultra -­ Low CarbonVehicle Technology and supply network development

Competition 4 -­ Up to £19m for supply chain development.Collaborative Research and Development and Demonstration.Road based TransportOn Vehicle technologyFund approx three to six projectsCo-­funded between the Office for Low Emission Vehicles and the Technology Strategy Board.

SMMT Support

Raise profile and promote importance of UK motor industry influence the direction of public policy on the issues of most concern to our industry.

Provide business intelligence on the opportunities emerging in the global automotive industry reports, data and forecasts on key markets and customers.

Help build closer relationships and promote networking opportunities for companies at all levels of the supply chain and with key funders and stakeholders.

SMMT Support

Provide guidance and advice so that companies can better access the support and funding that is available.

Through SMMT Industry Forum, provide direct productivity improvements and training services to help companies maintain and develop their competitive edge.

SMMT ASF database

SMMT Automotive Supplier Finder (ASF) database being used to support the work of Supply Chain Council in understanding UK supply base and capabilities.

SMMT have recently been supporting vehicle manufacturers find potential suppliers through ASF.

We encourage you to keep your profile up-­to-­date so that we are able to best match your products and capabilities to buyers requirements.

SMMT Support to WAF members

Offer all Welsh Automotive Forum members free access

-­ Support services-­ Business opportunities-­ Market intelligencewww.smmt.co.uk/memberservices

advice.

Paul Everitt

Chief executiveSMMT

www.smmt.co.ukhttp://twitter.com/PauleverittSMMT