drving force uk sustainability report
TRANSCRIPT
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Driving Force: Success and Sustainability in the UK Automotive Industry FC1
DRIVING FORCE
Success and Sustainability
in the UK Automotive Industry
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Success and Sustainabilityin the UK Automotive Industry
2 Foreword
Industry and Government working together
4 Introduction
Europes most diverse and dynamic
automotive industry
6 Chapter 1
A global force
13 Chapter 2
World-class productivity
18 Chapter 3
Government and industry in partnership
22 Chapter 4
People and skills
25 Chapter 5
Cutting edge research and development
31 Chapter 6
Looking forward
34 Appendix
Cover image: SMMT
Contents
Driving Force: Success and Sustainability in the UK Automotive Industry 1
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2 Driving Force: Success and Sustainability in the UK Automotive Industry
FOREWORDIndustry and Government working together
Todays industries face challenges on an unprecedented scale.
Globalisation, the pace of technological change and consumer
demand have revolutionised the way we do business.
Knowledge and skills play an increasingly important role in the UKs capacity
for innovation and growth. And the motor industry in the UK is meeting thosechallenges successfully, measured by its total activity rather than by the
assembly of the final product. The UK is consolidating its leading position as
a centre of excellence in the production of vehicles and components, satisfying
the demand of a vibrant domestic market and providing wider access to the
rest of the European customer base.
The UK is an excellent place to do business. It is home to an increasingly
dynamic industry at the forefront of process improvement, product innovation
and best practice, delivered by the best people. We have skills and flexibility
in our workforce, we have the backbone of our world-beating motorsports
experience, we have the engineering capability, we have a proven track record
for innovative development, and our designers are world-renowned.
In addition, the UK Government has created a regulatory and business
framework which actively encourages home-grown and inward investments.
It offers an environment where all companies are treated equally, regardless
of ownership, with the result that no other member state in the EU is home to
as many manufacturers of vehicles cars, trucks and buses as the UK.
This publication sets out the facts about the automotive industry in the UK,
underlining its strengths and capabilities.
Undoubtedly, global competition provides tough challenges and the UK has
had to take its share of rationalisation including well-publicised plant closures.
But the overall story is one of remarkable adaptability and resilience basedon continuous development and openness to world markets. By working
cooperatively, government, industry and academia are ensuring that the UK
builds on this automotive success story and continues to provide a home for
competitive automotive manufacturing and sustainable mobility.
Margaret Hodge
Minister of State for Industry and the Regions
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Driving Force: Success and Sustainability in the UK Automotive Industry 3
The UK is an excellent place to do business.It is home to an increasingly dynamic industry at the
forefront of process improvement, product innovation
and best practice, delivered by the best people.
DTI
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4 Driving Force: Success and Sustainability in the UK Automotive Industry
INTRODUCTIONEuropes most diverse
and dynamic automotive industry
The sector has two distinct parts: the manufacture of vehicles
and components; and the motor trade (including retail,
distribution and aftermarket services).
In the case of manufacturing,
Britain leads Europe as the mostdiverse and productive vehicle
manufacturing location and as a
global centre of excellence for
engine development and production.
More than 40 companies manufacture
vehicles in the UK ranging from
global volume car makers, van, truck
and bus builders, to specialist niche
players. The industry is supported by
a dynamic supply chain including
many of the worlds major Tier 1component manufacturers,
technology providers, design and
engineering consultancies; and it
benefits from a world-renowned
knowledge base.
No other European country has
anything like this range and number
of automotive players. The industry in
the UK is characterised by significant
foreign direct investment and high
exports, equivalent to 12.4% of theUKs exports of goods. Overall,
automotive manufacturing provides
221,000 jobs and contributes some
9.8 billion value-added to the UK
economy. The companies based in
the UK operate in Europes second
biggest automotive market with UK
customers in 2005 accounting for the
purchase of more than 2.4 million
new cars equivalent to 17% of
European vehicle registrations.
Moreover, the UK offers a highly
sophisticated retail and service/maintenance sector, which last year
generated some 22 billion value
added to the UK economy. It
comprises some 65,000 businesses
employing 550,000 people.
Setting standards
The automotive industry is at the
forefront of process improvement
setting standards for other sectors,
such as aerospace and ischaracterised by economies of scale
and low unit costs, despite the
increasing complexity of its products.
In 2005, 1.6 million cars equivalent to
the peak number of fully assembled
cars that rolled off the production
lines in the early 1970s1 and just over
200,000 commercial vehicles were
produced in the UK. Of these, more
than 73% of the cars and 62% of the
commercial vehicles were exported.The UK accounts for some 3% of
worldwide vehicle output and 9%
of European assembly, ranking it
fourth in Europe and ninth globally.
This is in stark contrast to the
industry of 40 years ago, when most
cars sold in UK were designed and
built in the UK, mainly for the home
market. Now the majority of UK-
made vehicles are exported to a wide
variety of markets, with Europe the
1 UK car production peaked in 1972 at 1.9 millions units, but this included a substantial number of kits for direct export.
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Driving Force: Success and Sustainability in the UK Automotive Industry 5
main destination, significant salesin North America and Asia, and
specialist luxury marques sold
around the globe.
There are more than 2,600
component manufacturers in the
UK, contributing over 4.8 billion
added value and employing around
132,000 people. The UK is also an
increasing force in powertrain design
and production (the components
making up the power transmissionsystem of a motor vehicle from
engine to final drive), with a
particular strength in engines.
There is a long-established,
independent, design engineering
sector offering the full spectrum
of services from concept design
through to limited-series vehicle
production. The sector is recognised
internationally for its flexibility
and responsiveness and for theinnovative qualities of its engineers.
It continues to evolve and the
last five years have witnessed a
succession of acquisitions, closures
and re-emergences in response
to the changing demands of its
global market.
The UK is also strongly influential
in vehicle styling, with many British
designers and graduates from
British institutions directly employedby vehicle manufacturers around
the globe. As a direct result of this
expertise, Nissan recently movedits design studio from Germany
to London.
Heritage and change
This strong combination of heritage,
diversity and agility places the
automotive industry in the UK
in excellent shape to face the
unremitting pressures for change
in the 21st Century. The principal
challenge is for the UKs automotivemanufacturing industry to align its
technology, product and business
performance to deliver customer
value in a global industry subject to
relentless cost-cutting pressures.
Regulation poses further challenges.
Environmental protection and safety
legislation are set to strongly
influence the number and type of
vehicles that will be manufactured,
marketed and used. The focus withinEurope will be on securing these
environmental benefits while
generating competitive advantage.
Additionally, industry analysts expect
South East Asian manufacturers to
dramatically increase their global
market share. But with the UKs close
focus on efficiency, productivity,
innovation and value-added
manufacturing and its cross-section
of international manufacturers, theindustry is well placed to face these
challenges with confidence.
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Driving Force: Success and Sustainability in the UK Automotive Industry 7
One of the great strengths of the
UK automotive industry is a deep
understanding of globalisation and
an ability to continuously evolve and
create new opportunities in the face
of change. Over the last 20 years
there has been a revolution in theway vehicles are manufactured,
with a streamlining of production
processes, elimination of waste and
focus on quality, cost and delivery.
It can be said that the automotive
industry in the UK now rivals that
in any country in the world for its
combined efficiency, quality and
unit cost.
Foreign direct investment
Overall, the sector includes some
3,300 firms. The majority of vehicle
manufacturers and first-tier
component suppliers are overseas
owned, all treated equally by the
Government. Seven of these are
volume car manufacturers with
a number of truck, van and bus
companies, supported by 19 of the
worlds top 20 suppliers. The list
includes, for example, BMW (MINI),
Ford light commercial vehicles andengines (together with its Premier
Automotive Group marques: Jaguar,
Land Rover and Aston Martin), GM
(Vauxhall), Honda, Nissan, Peugeot2
and Toyota. Suppliers include Aisin,
Bosch, Calsonic, Dana, Delphi,
Denso, GKN, Johnson Matthey,
Pilkington, Siemens VDO, TRW
Conekt, Visteon and many more.
In addition, there are a number of
manufacturers producing high valueand luxury vehicles serving niche
markets, including BMW (Rolls-
Royce), Caterham, Connaught,
Gibbs, McLaren and Mercedes-Benz
(Mercedes-McLaren SLR), Morgan,
Proton (Lotus), TVR, and
VW (Bentley).
There are also companies from
the construction equipment, heavy
plant and off-road sectors such as
Caterpillar, CNH, JCB, Komatsu,
McCormick and Terex, allmanufacturing in the UK.
The UK has three sites producing
light and medium vans. IBC Vehicles
in Luton builds Vauxhall/Opel,
Renault and Nissan badged vehicles,
the Ford plant in Southampton
manufactures Transit vans and LDV
in Birmingham has recently
introduced the new Maxus van.
The UKs volume truck builder is
Leyland Trucks, a wholly owned
subsidiary of the PACCAR group of
the US. The Leyland facility is one of
Europes largest and most advanced
plants. It builds trucks under the
DAF and Foden brands. The plant
has won many industry awards for
its efficient performance.
Overall the industry is currently
investing over 1 billion annually in
new plant and technology, equivalent
to 10% of gross value-added.
A global force
The automotive industryin the UK now rivals that inany country in the worldfor its combined efficiency,quality and unit cost.
2 Peugeot plant at Ryton scheduled to cease production in mid-2007
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8 Driving Force: Success and Sustainability in the UK Automotive Industry
A global force
Highlights of the results of recent
investments include:
Toyotas Burnaston plant has seen
output up 25% in two years;
MINI output now exceeds 200,000
units annually, in response to
sustained strong demand;
Exciting new models at Land
Rover have lifted output by 20%
to new record levels in 2005.Over 2,600 companies are active in
the automotive components sector,
ranging from the global players
mentioned above to small and
medium-sized businesses. Together
they contribute over 4.8 billion
added value and employ some
132,000 people. The sector exports
over 6 billion worth of goods
annually, 75% destined for Europe
and over 1 billion-worth travellingto the Americas.
The UK is also a centre for design
engineering where around 7,500
people are employed, generating a
turnover of some 650 million, with
CASE STUDY
Bentley gears up new flagship convertible
Bentley
The UK is also a centrefor design engineeringwhere around 7,500 peopleare employed.
In 1998, Bentley Motors became part of the Volkswagen Group whichannounced a 500 million investment in the company. Bentley willsoon build the luxurious four-seater convertible Azure at its homefacility in Crewe, Cheshire. The latest new model joins the Bentleyline-up in Spring 2006 and becomes the flagship car of the range.
A purpose built facility brings together the latest technology with
unprecedented levels of craftsmanship for both the established Bentley
Arnage and the new Azure. Bentley also produces its Continental GT
and Continental Flying Spur cars on the same site.
The facility combines traditional hand built skills with some robotics,
but the vast majority of the 6400 spot welds on Arnage and the 6600 spotwelds on Azure are actually applied manually.
The exceptions being the hemming operations of the doors, bonnet and
boot areas.
The new model is yet another in a series of new products conceived and
built at the Bentley site in Crewe, Cheshire. Bentley Motors is this year
celebrating 60 years of manufacturing at Crewe.
Bentley has around 276 British suppliers and approximately 35 percent of
these are located in the Midlands and North West areas. Its products are
designed, engineered and produced on the self contained site, where a
specialist team of over 500 engineers are dedicated to the brand development.
In 2005, the company returned to profit with vehicle production exceeding
8500 cars.
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Driving Force: Success and Sustainability in the UK Automotive Industry 9
October 2005 saw the two millionth car drive offthe production line at Toyotas Burnaston plantsince the start of operations in December 1992.
From Burnaston, Toyota Motor Manufacturing (UK) Ltd
exports Avensis and Corolla models to 80 markets
worldwide with around 75% of production distributed
to mainland Europe, 10% to Japan and 15% to the UK
domestic market. In 2003 the Toyota Avensis,
exclusively built in the UK, became the first European
designed and built Toyota to be exported to the
Japanese domestic market. Toyota was awarded the
Queens Award for export in the category of
International Trade in recognition of the companys
outstanding contribution to British exports between
20022004, with a net contribution to the UKs balance
of payments typically more than 400 million per year.
Toyota exports
CASE STUDY
Toyota
around 65% exported. The UK is
home to the dedicated facilities of
vehicle manufacturers, such as those
at Fords engineering centres at
Dunton, Gaydon and Whitley, and
Nissans R&D centre at Cranfield.
In addition renowned names such
as Lotus Engineering, MAHLE, MEL,
Millbrook, MIRA, mi Technology,
Perkins, Pi Technology, Prodrive,
Ricardo, RLE, Roush, TRW Conekt,
TWI and Zytek are also active in the
UK. Many of these have other
overseas operations, located
everywhere from mainland Europe to
the US, Japan and China.
Motorsport
In addition to the strength in
mainstream vehicle design
engineering, the UK is the global
leader in motorsport and home to
many frontrunners in Formula 1.
The sector has an estimated annual
turnover of 4.6 billion and directly
employs 38,000 people, with UK
firms commanding 80% of the
global market.
As brand values become ever more
important, motorsport offers global
manufacturers a unique platform
to establish their reputation. Here,
marques such as Subaru have
capitalised on their world rallying
success to increase road car sales in
the UK, and the relationship betweenMcLaren and Mercedes-Benz led to
the development of the Mercedes-
McLaren SLR road car. There are also
spin-off benefits to the mainstream
automotive industry where
companies such as Prodrive have
moved from their roots in rallying to
offer wider design engineering
and development services whilst
The UK is the global leader inmotorsport and home to manyfrontrunners in Formula 1.
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10 Driving Force: Success and Sustainability in the UK Automotive Industry
A global force
Automotive 1999 2000 2001 2002 2003 2004
Bentley 8
BMW 70 154 124 146
Cummins 45 47 43 50 55 44
Ford Bridgend 531 485 493 576 594 621
Ford Dagenham 520 670 670 615 620 682
Honda 108 63 109 160 180 188
Land Rover 200 200 210 220 250 47
Nissan 275 316 301 256 281 272
Powertrain 240 230 219 204 200 114
Toyota 100 133 160 351 420 580
Vauxhall 75 75 75 138 100 12
Others 5 5 5 5 5 5
Sub total 2099 2224 2355 2729 2829 2719
Non-automotive
Perkins 300 300 300 300 300 300
Others 40 40 40 40 40 40
Total 2439 2564 2695 3069 3169 3059
Engine production in the UK(thousands of units/year):
capitalising on the motorsport
culture of team working and on
time delivery to secure competitiveadvantage.
Powertrain excellence
The UK is a centre of excellence
for powertrain development and
manufacture, producing some three
million automotive engines a year,
with an estimated 3 billion in sales.
A prime example is BMW Groups
Hams Hall plant in Warwickshire,
built to meet worldwide demand for
the companys four-cylinder petrol
engines, with 400 million invested
to date. In 2002, its first full year of
production, Hams Hall made 154,000
engines for BMW 3-series and Z4
cars. It also announced a decision to
assemble a new-generation, four-
cylinder petrol engine for future MINI
and BMW 1-series variants, the result
of BMWs collaboration with PSA
Peugeot Citroen, and representing a
combined investment of around 500
million on R&D and manufacturing
facilities over the period to 2007.
The BMW decision involved the
transfer of manufacturing from a
relatively low labour cost location,
The UK is a centre ofexcellence for powertraindevelopment andmanufacture, producingsome three millionautomotive engines a year.
Totals may not add up due to rounding.
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Driving Force: Success and Sustainability in the UK Automotive Industry 11
Brazil, to the technology-rich
environment of the UK.
Ford too, sources a significant
proportion of its engines in the UK
some 25% of its global requirement
and has expanded its facilities at
Bridgend (petrol) and Dagenham
(diesel) to meet this demand. The
Dagenham site is now Fords global
diesel engine centre of excellence.
Meanwhile, in the off-road sector,
JCB has recently invested more than
80 million in the development and
production of a new range of four-
litre diesel engines at its dedicated
plant in Derbyshire.
The retail sector
The UK offers a highly sophisticated
retail and service/maintenance
sector, employing more than 550,000
people and generating added value
of some 22 billion annually; and the
past decade has seen a shift in added
value from the manufacturing of
vehicles to the retail end of the
business chain.
The sector is fiercely competitive
across its range of services, from
new vehicle sales through franchised
and other retailers, to the trading of
used vehicles, vehicle maintenance,
servicing and repair, and sales ofspare parts.
Consumers are increasingly buying
on merit and demanding better
quality and value. This behaviour
enabled Korean brand Kia, which
entered the UK market in 1991, to
enjoy a 28% rise in sales for the first
half of 2005, following a near 60%
increase in 2004. Mazda is also
selling well in the UK 48,000 cars
were sold in 2004, representing an8% increase over the previous year.
CASE STUDY The Ford Bridgend engine plant in Wales is on schedule to producea million units annually by 2010 and it will supply the latest petrolV8 engine for the new Jaguar XK Coupe.
The plant has built up a strong relationship with Jaguar part of Fords
Premier Automotive Group (PAG) of luxury brands over the last decade
and delivered a world-beating V8 engine that has helped the brand move
ahead of its rivals.The million power units annually will include the new 4.2-litre range in
the latest XK series, together with PAGs existing 4.4-litre V8, a new
in-line six cylinder engine, and Fords successful Duratec series of
four-cylinder engines.
The all-new XK is the most technically advanced Jaguar ever built with
an advanced lightweight aluminium structure and is assembled in Castle
Bromwich, West Midlands. The V8 develops 300bhp and is fitted with a
Jaguar Sequential Shift six-speed automatic transmission incorporating
steering wheel mounted paddles for manual gear changes.
Ford Bridgend to produce a million engines a year
Ford
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12 Driving Force: Success and Sustainability in the UK Automotive Industry
A global force
The UK retail landscape has seen
the emergence of a number of large
quoted plcs, such as Pendragon and
Inchape, who operate multi-marque
networks and whose scale benefits
both their balance sheets and
customers alike. By contrast, the
European retail network tends to rely
more on brand loyalty and has a
much higher concentration of small
family-run dealerships.
However, recent European policy
and regulation developments have
introduced greater competition in the
EU. For example, recent changes to
the Block Exemption Regulations
mean that from October 2005,
automotive retailers have been able
to set up secondary sales outlets in
other countries of the EU as well as
their own. This may lead to retailer
groups establishing operations
across Europe. The big challenge
for the UK retail sector is whether it
can create strong UK-owned retail
groups that can grow in Europe
and elsewhere.
Trade body
The Retail Motor Industry Federation
(RMIF), whose membership is made
up of large, medium and small
retail motor businesses includingfranchised car retailers, independent
garages and bodyshops, represents
the retail sector.
The RMIFs role is to influence
and play a major part in important
motor trade issues affecting every
individual in the sector, including
European representation, such as
on issues like the EC Block
Exemption Regulation, and customer
service standards.
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Driving Force: Success and Sustainability in the UK Automotive Industry 13
WORLD-CLASS
PRODUCTIVITY
CHAPTER 2
Quality, cost and delivery (QCD) is the mantra of todays
automotive engineers, and nowhere is this more important than in
the UK, home to Europes most efficient car and truck plants.
SMMT
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14 Driving Force: Success and Sustainability in the UK Automotive Industry
Overall value-added per employee
as a measure of productivity has
risen by 45% in just three years:
a significant improvement.
The UKs leading facility in terms of
output is Nissan at Sunderland, with
over 300,000 cars produced in 2004.
This is also Europes most productive
car plant, with Toyota at Burnaston
and Honda in Swindon also in the
European top 10 most productivecar factories.
The year 2001 saw the arrival of the
BMW MINI, now a major success
around the world. When BMW
started production, each worker was
producing 36 cars a year; now it is 45.
In 2004 Jaguars Halewood plant
became Fords best performing plant
in the world measured against a
number of indicators in the Ford
Production System. In 2005 Aston
Martins production reached recordlevels on the back of the DB9 and
new V8 Vantage models. The marque
World-class productivity
It has been 14 years since the first British-built Accord rolled off theassembly line at Honda of the UK Manufacturing Ltd (HUM),Swindon. Just 1200 Associates (as Honda calls its employees) built30,000 cars in the first full year of production.
Two years later, the European Civic was introduced with production
starting in September 1994. To manufacture two models on the same
line was a major milestone in the plant's history - and these models
have had a tremendous impact on Honda's fortunes in Europe.
By 1995, the plant was building 91,200 cars a year, three-quarters of
them Civics. Civic sales in Europe rose by 30%, while Honda increased
its total car business in Britain by 50%.
A further milestone was reached in 2000, when production of the CR-V
was added to the Swindon line-up. Since then, a second production line
has been added and the plant now employs 4,000 Associates building
190,000 cars per year. Nearly 800,000 Civics have been built over the12-year period, with more than 60% exported to North America,
Japan and mainland Europe. 326,000 Accords and 460,000 CR-Vs have
also been built, the CR-Vs destined for the North American market as
well as Europe.
Here in Britain, the locally-built Civic is established as Honda's most
popular car range, accounting for one in every three of the company's
car sales. The model is also the most widely sold British-built compact in
this country, with the Civic three-door the most popular car in its class.
In October 2005 Honda reached another major milestone with the start
of mass production of the 8th generation Civic, a five-door hatchback.Volume production began just seven months after the concept version
was unveiled at the Geneva Motor Show.
Honda success in Europe
CASE STUDY
Honda
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Driving Force: Success and Sustainability in the UK Automotive Industry 15
is well on its way to achieving Fords
goal for annual sales.
Leyland Trucks also saw record
production in 2005 with its highestannual output from the Leyland plant
in its 25-year history. Over 17,000
Daf/Foden trucks where built in 2005,
taking total production from the plant
over the 25 years to the milestone
figure of a quarter of a million.
Quality, cost and delivery (QCD), or
lean manufacturing, is an approach
that is constantly searching for better
ways of doing things and looking
at how to eliminate waste. It hasbeen the driving force behind
development of the UK automotive
industry in recent years.
SMMT Industry Forum
The impetus to achieve improved
QCD came with the arrival of Honda,
Nissan and Toyota in the mid-1980sand early 1990s. They spearheaded a
drive for efficient production and
for process improvement that lifted
quality across the sector to world-
beating levels. This was the origin
of the SMMT (Society of Motor
Manufacturers and Traders) Industry
Forum which brought together a
unique collaboration between
international vehicle manufacturers,
including Honda, Nissan and Toyota,
as well as GM (Vauxhall) and
Volkswagen. DTI was a strategic
partner in the process and in 1996
helped turn the concept into a reality
CASE STUDY In summer 2005 Jaguars Halewood plant in Merseyside waspresented with the prestigious JD Power and Associates EuropeanPlant Quality Gold Award.
And for three consecutive years, the plant has received the top score in
Fords Integrated Systems Review. This annual process audit measures
manufacturing and quality standards in all Ford-owned facilities. This is
an influential internal review and Halewood is now seen as a globalbenchmark for best practice.
The Jaguar facility scooped the JD Power accolade after its product, the
X-TYPE, led Jaguar to a remarkable success in JD Powers annual survey
of US customer satisfaction. It improved to second position overall in the
survey and became the highest-ranked European nameplate.
The X-TYPE is Jaguars most improved model. The Merseyside
manufactured car improved 37 points in the JD Power study, a 35% leap
over the year before. The study ranks new vehicle quality after 90 days in
the hands of customers and is recognised as the industrys top
benchmark for quality.
The Halewood plant is also home to the Premier Automotive Groups
European Lean Learning Academy and acts as a centre of excellence for
Premier Automotive Group employees. Managers from across Europe
spend three weeks at the centre sharing best practice and learning about
the principles and techniques associated with lean manufacturing.
Jaguar in Britain
Jaguar
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16 Driving Force: Success and Sustainability in the UK Automotive Industry
World-class productivity
with an initial grant of almost
4 million when Industry Forum
opened for business.
With the shared goal of raising
manufacturing standards to world-
class across the whole industry, the
founding companies of Industry
Forum each supplied master
engineers to transfer the skills,
knowledge, tools and delivery
techniques of process improvement
across the sector and down the
supply chain. This led to the
development of a suite of learning
by doing programmes, and while
the master engineers have since
returned to their respective
companies, the training is now
delivered by senior Industry
Forum Engineers who maintain the
high standards.
CASE STUDY The outstanding sales success of the MINI has prompted the BMWGroup to invest over 100 million in its Oxford plant between nowand 2007, creating around 200 new jobs in MINI production.
The BMW Group has already invested 280 million in the production of MINI
in Oxford since 2000. Around half of the 100 million announced last
year is being invested into a new body shell production extension in order
to increase capacity and reduce customer waiting times.The MINI is on sale in more than 70 different countries, from Chile to China,
and worldwide sales since launch reached a total of 529,921 vehicles at the
end of 2004. The UK remains the largest market, followed by the US and
Germany with more than 75% of MINIs being exported from the Oxford plant.
MINI production, originally planned for around 100,000 vehicles per year,
now exceeds 200,000 units annually in response to sustained strong demand,
making the Oxford plant the fourth largest vehicle producer in the UK. The total
number of employees has risen to 4,500, including around 125 apprentices.
Growth has been based on continuous efficiency improvements in
production processes including ideas from the plants employees whichhave led to savings of 17.2 million since 2002. With one of the most flexible
working time models in the UK automotive industry, the current three-shift
working pattern enables the plant, in response to customer demand, to run
seven days and up to 134 hours per week, using the remaining time for
maintenance and cleaning.
From 2007, more than 80 people and 160 computer-controlled welding
robots will be assembling MINI body shells in a new building. The paint
shop will be equipped with new, highly efficient and flexible paint
technologies to improve both capacity and flexibility.
The MINI production triangle in the UK incorporates plants Oxford, Hams
Hall (petrol engines) and Swindon (pressed parts). This localised networkdelivers increased economic impact, enhanced technical competence
and flexibility.
MINI scores major success
Mini
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Driving Force: Success and Sustainability in the UK Automotive Industry 17
Clarity
The measures highlight priorities for improvement in production
management with clarity and focus.
Simplicity
They simplify even a complex manufacturing process and identify a
straightforward route to gain performance improvements.
Feedback
The measures can be used to quantify the results of any changes to the
process. The effect of a change can be compared with the status of the
process before the change. QCD provides rapid feedback and quantifiable
numeric comparisons.
Benchmarking
QCD provides the basis for objective comparison with benchmarked
processes or the performance of a benchmark company. This highlights
processes which offer better methods and practices.
The bottom line
Business survival is dependent on the profit generated from satisfying
customers. QCD is a robust production tool which has a measurable
effect on manufacturing efficiency, and can help to improve
competitiveness, develop business and increase profit.
Since 1996, the Industry Forum has
worked with over 450 car and
components manufacturers to
improve their performance and
the model has been used for around
14 other industry sectors, including
construction equipment, semi-
conductors, electronics, aerospace,
telecommunications, textiles,
building products, food and
chemicals processing.
A study by SMMT Industry Forum
identified average benefits of
150,000 per annum per company
taking a MasterClass, giving a
payback time of just over a month
after the improvements had been
implemented. Overall, the benefits
being enjoyed by British
manufacturing industry since
Industry Forum was formed is
estimated at close to 118 million.
This work provides the basis for new
initiatives such as the Automotive
Academy and Supply Chain Groups
which are looking to embed lean
manufacturing skills and processesmore broadly and deeply across the
whole automotive manufacturing
sector (see page 20).
Measuring QCD provides significant advantages
Ford
Since 1996, Industry Forumhas worked with over 450car and components
manufacturers to improvetheir performance.
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18 Driving Force: Success and Sustainability in the UK Automotive Industry
GOVERNMENT
AND INDUSTRYIN PARTNERSHIP
CHAPTER 3
The value the UK Government places on manufacturing and the
automotive industry in particular is demonstrated by the
quality, frequency and intensity of dialogue and collaboration.
Ford
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Driving Force: Success and Sustainability in the UK Automotive Industry 19
The regulatory and policy agenda
impacting on the automotive sector
is a challenging one in particular,
environmental imperatives and the
need for continuous improvement
in safety standards will continue to
be major drivers of the market. The
Government fully appreciates the
need for regular, high level contact
with the sector and the development
of a partnership approach to ensure
policy-making on these and other
areas is effectively joined up and
properly informed by the potential
implications for competitiveness.
The UK seeks to minimise threats
and maximise opportunities,
pursuing the partnership approach
through bodies such as the Vehicle
Industry Policy and European
Regulation Group (VIPER), the Retail
Motor Strategy Group (RMSG) and
the Low Carbon Vehicle Partnership
(LowCVP).
VIPER
VIPER was established in 2003 by
the DTIs Automotive Unit to provide
a one stop policy shop for the
automotive sector. Representatives
of a cross-section of the industry
(including all the major vehicle
manufacturers) are brought together
on a regular basis with officials from
across Government, including not
just DTI, but also the Department for
Environment, Food and Rural Affairs,
and the Department for Transport.
VIPER monitors the policy
formulation process in the UK and
Europe, scanning the horizon to
ensure industry is engaged in all
relevant aspects of policy
development from an early stage and
facilitating detailed discussion on key
subjects at all stages of the policy
formulation and implementation
process. In everything it does, VIPER
helps to reinforce the Governments
commitment to the principles
of Better Regulation and the
emphasis at all points is on
maximum transparency.
Since its inception, VIPER has helped
to frame UK policy on a wider variety
of issues, from the implementation
of the End of Life Vehicles Directive
to the European Commissions latest
Euro V proposals on air quality (it is
estimated that the cost to business
of implementing the End of Life
Vehicles Directive, for example, has
been cut by 250 million). In 2005,
it also enabled the UK Government
to engage with the automotive
sector on a regular basis throughout
the lifetime of the European
Commissions CARS21 group3.
The success of the VIPER model has
led DTI to replicate it in a number ofother industrial sectors.
Retail Motor Strategy Group
The Retail Motor Strategy Group
(RMSG) was created in 2002 to
provide a strategic interface between
the Government and industry on the
particular policy framework impacting
the automotive retail sector.
Government and industry in partnership
Representatives of a cross-section of the industry(including all the majorvehicle manufacturers)are brought together on aregular basis.
SMMT
3 CARS21 was a high level group brought together by the European Commission to consider the future of the
European automotive sector and, in particular, how enhanced competitiveness could be delivered
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20 Driving Force: Success and Sustainability in the UK Automotive Industry
Membership of the Retail Motor
Strategy Group (RMSG) is drawnfrom senior management and Chief
Executives, from Government,
manufacturers, franchised and
independent retailers, parts suppliers
and consumer representative bodies.
Like VIPER, the RMSG enables
members to access the government
officials responsible for developing
and implementing policy and
regulation at both a UK and
European level, shaping their
thinking at the earliest opportunity.
Priority areas of work include theEC Block Exemption Regulation
defining the competition law
Government and industry in partnership
The AIGT made a number of recommendations the following year.
These included the establishment of three organisations:
An Automotive Academy to raise skill standards throughout the
industry (see page 23);
The Low Carbon Vehicle Partnership to accelerate the move to a low
carbon future through joint stakeholder activity (see page 21);
Centres of Excellence (CoE) in two priority areas sustainable
transport and low carbon propulsion (see page 27).
The AIGT made a number of additional recommendations aimed at
improving other aspects of the sectors, including: Placing the Foresight Vehicle network under industry ownership to
improve its responsiveness to industry needs (see page 27);
The development of a Supply Chain Group programme to increase
efficiency of the supply chain through the promotion of best practice.
The Supply Chain Group (SCG) programme was launched in April 2003
to run for five years with up to 15 million of government funding. It aims
to strengthen the productivity and competitiveness of assisted businesses
through the adoption of world-class processes and techniques.
Companies can apply for a grant that may cover up to 50% of the cost of
a project. Already 27 SCG projects are under way covering automotivecompanies that employ over 50,000 people and generate over 2.5 billion
of added value, representing a significant part of the sector.
In 2001 the DTIs Automotive Unit established an Automotive Innovationand Growth Team (AIGT) under the chairmanship of Sir Ian Gibson,bringing together the expertise of Government, industry and academiato analyse the industry and set out actions for all parties.
Shaping the future
The RMSG enablesmembers to access thegovernment officialsresponsible for developingand implementing policyand regulation at both aUK and European level.
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Driving Force: Success and Sustainability in the UK Automotive Industry 21
framework for the sector across the
EU and the desire to increase
customer confidence in service
standards throughout the industry.
Low Carbon Vehicle Partnership
LowCVP is an action and advisory
group established in January 2003 to
take the lead in accelerating the shift
to clean, low carbon vehicles and
fuels in the UK. It is a partnership of
organisations from the automotive
and fuel industries, academia,
environmental non-governmental
organisations and other stakeholderswho are working together with
Government on shared goals to
make the shift happen. The
objectives are set out in the
Governments Powering Future
Vehicles Strategy which defines low
carbon targets for 10% of new car
sales and 20% of new buses in the
UK by 2012 in support of the UKs
commitment to the Kyoto Protocol.
LowCVP has been recognised
internationally as a best practice
government and industry
partnership. An early outcome was
the development of the new Energy
Efficiency Car Label, ahead of the
rest of Europe, which is helping
transform the market by persuading
consumers to buy greener cars.Another outcome is a programme
initiated by DTI/DEFRA to use public
procurement as a mechanism to
accelerate the introduction of low
carbon vehicles into the market in
volumes large enough to make their
manufacture a viable proposition for
the future. This is being taken
forward by Cenex and is described in
further detail on page 27.
LowCVP has beenrecognised internationally as
a best practice governmentand industry partnership.
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22 Driving Force: Success and Sustainability in the UK Automotive Industry
PEOPLE
AND SKILLS
CHAPTER 4
Skills are of fundamental importance to the economic
prosperity of the UK. Against a backdrop of globalisation,
rapid technological change and an ageing population,
knowledge and skills are playing an increasingly important
role in the UKs capacity for innovation and growth.
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Driving Force: Success and Sustainability in the UK Automotive Industry 23
In recognition of this link between
productivity and skills, one of the key
recommendations of the Automotive
Innovation and Growth Team (see
Shaping the future page 20) was
for the creation of an Automotive
Academy to ensure the skills levels
of the UK automotive workforce are
raised to the highest possible global
standards. The brief was for an
Academy that would be industry-
driven and deliver training that was
world-class, demand-led, consistent
throughout the country and
nationally and internationally
recognised.
Established by the SMMT in 2004 as
a partnership between Government
and industry and with over
13 million backing from the DTI,
the Automotive Academy now
operates across the industry, offering
training from the shop floor through
to senior boardroom directors, with
lean production and business
improvement at its core.
The Academys vision is to be the
prestigious national centre of
learning for people in the automotive
industry in the UK. The Academy
does not itself deliver courses, rather
it provides easy access for firms and
individuals in Britain to training that
is globally competitive and directly
relevant to the industry.
The Academy is working with
stakeholders from the education
sector including the Sector Skills
Council (SEMTA), the qualification
awarding bodies, the Learning and
Skills Council and training providers
to establish a core curriculum of
training programmes and material.
Courses are subject to a stringent
validation process and materials,
trainers and assessors across the
UK are benchmarked against best
practice. Those successfully
completing the courses gain a
nationally recognised Certificate of
Achievement. Employees come from
all disciplines engineers, supplyand purchasing staff, shop floor
operators, team leaders, managers
and executives and from across
the industry, from the smaller
manufacturers in the component
supply chain up to the UKs biggest
vehicle manufacturers.
The Academy has also created a
skills escalator to promote
continuous learning, encouraging
greater focus on career developmentwith the aim of retaining skilled staff
and delivering sustainable business
improvements.
The hub of the Academy is based
in the heart of the UK automotive
industry in the West Midlands and
is responsible for the skills strategy
as well as marketing and public
relations. In addition, it carries out
validation of the courses, training
providers and assessors. The hub issupported by a network of regional
spokes working to identify and
satisfy local demand. The spokes act
as agents for the Academy, providing
a one-stop shop contact point to
help companies with their training
and funding requirements. There will
be nine spokes, each providing an
essential regional focus and offering
support locally, with a remit to
improve the skills base in the
automotive industry in their local
area, serving everyone from small
companies in the supply chain to
the major manufacturers.
People and skills
The Academy has alsocreated a skills escalator topromote continuous learning,encouraging greater focus oncareer development.
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24 Driving Force: Success and Sustainability in the UK Automotive Industry
People and skills
It does this by working with employers and partners in the motor
industry across the UK to develop a highly skilled and motivated
workforce. Its purpose is to:
Reduce skills gaps and shortages;
Improve productivity, business and public service performance;
Increase opportunities for the development of the workforce across
the whole sector;
Influence action which improves the quality and quantity of
learning supply.
*Automotive Skills Limited is part of a network of Sector Skills Councils which brings
together employers, trade unions and professional bodies working with Government
to develop the skills that UK business needs. SEMTA is the corresponding Sector
Skills Council for automotive manufacturing.
Improving skills in the retail sector
CASE STUDY Automotive Skills Limited is the Sector Skills Council*for the retailmotor trade, charged by Government and employers with leadingthe drive to raise the skills base in the UK automotive industry.
Automotive Skills
Nissan design studio in London
CASE STUDY Nissan has recently opened a new colour studio inside its Europeandesign headquarters in central London.
The facility, which covers 240 square metres, is situated in the south
wing of the Rotunda, a converted British Rail maintenance workshop,
which has been home to Nissan Design Europe (NDE) since January2003. Seven full-time designers will be based there, working on both
exploratory and production vehicles.
The colour designers come from a variety of cultural and professional
backgrounds, their common strength being an ability to develop an
atmosphere or identity through the balanced use of colour, materials
and detailing.
NDE employs around 50 full-time staff, all of which are based in the
Paddington studio. It plays a key role in Nissans global design network,
which comprises six studios worldwide. Nissan
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Driving Force: Success and Sustainability in the UK Automotive Industry 25
CUTTING EDGE
RESEARCH
AND DEVELOPMENTThe creativity and inventiveness of our people is
the UKs greatest asset and our ability to invent,
design and manufacture the goods and services
that people want is vital to our future prosperity.
CHAPTER 5
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26 Driving Force: Success and Sustainability in the UK Automotive Industry
With increasing globalisation, the
capability to exploit new ideas is
essential to safeguard and deliver
high quality jobs and successful
businesses.
The UK is well placed to succeed.
In 2003, the UK produced about 12%
of global citations across nine major
research fields including Engineering,
Physical Sciences, Environmental
Sciences, Mathematics and Business,
and overall is ranked second
only behind the United States.
Unsurprisingly against this
background, technological innovation
plays a major role in the success of
the UK as a centre for world-class
automotive research and
development.
Design engineering teams across
the industry are dedicated to cutting-
edge innovation (see Chapter 1).
Small, specialist vehicle
manufacturers, such as Morgan,
Connaught and Zytek are also
significant in that they are agileenough to provide a faster route
to market than the high volume
manufacturers. They are also less
constrained in their choice of
technology partners.
Similarly, the UKs commercial
vehicle sector, including bus and
truck, is particularly important as an
entry point for environmentally
friendly vehicle technologies in fleet
Cutting edge research and development
CASE STUDY
The Dagenham Diesel Centre is the focus of Fords diesel engine
development and production and is a state-of-the-art facility, creatingand building premium high technology diesel engines for Ford, Jaguar,
Land Rover and PSA Peugeot Citron customers.
Ford has invested 550 million in diesel engine and manufacturing at
Dagenham since 2003 and it is expected that around 50% of all cars
sold in Europe by 2006 will be diesel-powered.
CEME was established with some 37 million funding from a unique
private/public partnership led by Ford and the London Development
Agency, together with Barking and Havering Further Education Colleges
and London Riverside Limited. It offers a world-leading learning
environment specifically aimed at encouraging a diverse, socially
inclusive and innovative range of learning activities to build engineering,manufacturing and business capabilities.
Fords Dagenham Diesel Centre and the Centre forEngineering and Manufacturing Excellence
Ford
Design engineering teamsacross the industry arededicated to cutting-edgeinnovation.
Officially opened by the UK Prime Minister in 2003, Ford's DagenhamDiesel Centre (DDC) in Essex is an advanced production andengineering facility while the nearby Centre for Engineeering andManufacturing Excellence (CEME) is an outstanding establishmentfor education and learning.
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Driving Force: Success and Sustainability in the UK Automotive Industry 27
applications. This also introduces
new technology elements into the
supply chain.
This technological capability reflects
the current strengths and structure of
the sector. For example, the UK has
world-class capability in powertrain
systems integration, an area that is
becoming ever more important as
the electronic and mechanical
systems become more complex andthe demands on reliability more
stringent.
Foresight Vehicle Programme
The sharing of this expertise,
through knowledge transfer, is
crucial to the industry as a whole.
Here, industry, academia and the
Government have come together to
create Foresight Vehicle, the UKs
prime knowledge transfer networkfor automotive applications, seeking
to identify critical technologies for
sustainable road transport.
In addition to networking, Foresight
Vehicle products include over 100
collaborative R&D projects worth
more than 100 million, involving
industry working with the research
base, transferring technology and
solving problems. These projects
cover the key technology themes of:
Engine and powertrain;
Hybrid, electric and alternatively
fuelled vehicles;
Advanced software, sensors,
electronics and telematics;
Advanced structures and
materials;
Design and manufacturing
processes.
The Foresight Vehicle Technology
Roadmap provides technology and
research directions for future road
vehicles and has been developed in
a global context to help support UK
industry to provide sustainablemobility for UK citizens. It is available
through the SMMT Foresight Vehicle
website.
Centres of Excellence
The Technology Roadmap validates
the recommendations of the
Automotive Innovation and Growth
Team (AIGT) for action in the key
technology areas of telematics and
low carbon propulsion technologies.As a result, two new cross-sectoral
Centres of Excellence have been
established to move these
technologies closer to the market.
Cenex the Low Carbon and Fuel
Cells Centre of Excellence was
established in April 2005. Jointly
funded by industry and the DTI,
the Centre is helping to build a
competitive advantage for the
automotive industries in the UKthrough the shift to a low carbon
economy. Its activities will assist UK
companies developing low carbon
automotive technologies to bring
these to market, and showcase the
UKs expertise to encourage inward
investment. Cenex is also operating,
on behalf of the DTI, the UKs
Knowledge Transfer Network in low
carbon and fuel cells technologies.
Foresight Vehicle productsinclude over 100 collaborativeR&D projects worth morethan 100 million.
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28 Driving Force: Success and Sustainability in the UK Automotive Industry
Cenex is focusing upon:
Mapping current and emerging
technologies in the low carbon
and fuel cell markets and
identifying and communicating
those which may influence the
future direction of the industry;
Influencing the creation and
deployment of fleet-scale
demonstrators in the UK
passenger vehicle, public transport
and commercial vehicle sectors;
Facilitating affordable market
entry strategies for low carbon
and fuel cell technologies by
direct intervention with public
and private sector procurement
bodies;
Becoming a flagship organisation
for the promotion of UK activities
on low carbon and fuel celltechnologies and acting as the
focus for projects requiring
international co-operation;
Mobilising or otherwise
constructing an effective UK
supply chain by coordinating the
activities of academia, component
suppliers, assemblers, OEMs and
other intermediaries.
Public procurement is expected to
play a key role in transforming theroad vehicle market in the UK.
Low carbon urban delivery vehicles
have been selected as one of the
public procurement exemplars being
progressed under the Environmental
Innovations Advisory Groups (a joint
DTI/DEFRA unit) Forward
Commitment Project to encourage
the development of the market for
environmental technologies. Cenex is
leading this project.
innovITS is the Centre of Excellencefor telematics and technologies for
sustainable mobility, also established
in April 2005. Its vision is to co-
ordinate the UKs validation of new
and innovative Intelligent Transport
Systems (ITS) as a catalyst to
building world-class products and
services that enable the UK ITS
industry to compete globally. Its
coverage, from either a service
provider or road user perspective,
includes both:
The management of vehicles
using the road system to improve
the journey time, reliability and
safety for those vehicles and to
improve road network efficiency;
Systems to improve safety,
comfort and journey time
reliability for users of vehicles.
Cutting edge research and development
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Driving Force: Success and Sustainability in the UK Automotive Industry 29
Work is focusing around five project
themes which will evolve over time:
A commercial vehicle platform
a unified on-board platform for
commercial vehicles to enable
a wide range of current and
emerging telematics applications;
Infrastructure integration
information services and roadside
equipment for delivering a range
of current and emerging ITS
applications from a common base;
Smart traveller services dynamic
travel information services for
multimodal operations with
integration between vehicle-
oriented and other journey stages;
Extended fleet management
advanced monitoring and
management applications for
commercial fleets and freight;
Integrated communications
solution a medium-independent
on-board platform for vehicle-to-
vehicle and vehicle-to-
infrastructure communications.
Three years after the go-ahead, the first JCB 444 diesel engine was
produced at the Dove Valley plant in Derbyshire on 1 November 2004.
The new plant has now produced more than 10,000 engines and output
will reach 25,000 in 2006.
To start with a clean sheet of paper required an investment of 80 million
in research and development and the advanced assembly plant. JCB
already designs and produces in-house: transmissions, axles and cabs.
Working with world-class technology partners, the new engine was
designed to achieve excellent low-speed torque, class-leading low noiselevels and the latest combustion technology able to cope with the ever
more stringent emissions regulations. The basis of the design is a very
strong, rigid construction with a bedplate at the base of the engine to
improve stiffness and so improve durability and lower noise levels.
The result is the most modern engine designed specifically for the
construction equipment industry and acclaimed by operators for its low
noise and excellent performance. Manufacturers from sectors as diverse
as marine and generators are keen to use the JCB 444 engine in their
equipment and third party sales are already well under way.
JCBs bold investment in its own diesel engine
CASE STUDY Deciding to build your own diesel engine, instead of buying fromestablished engine producers, is not a decision to be taken lightly.
But this was the brave step JCB took in order to have a state-of-the-art diesel engine designed specifically for off-highway use.
JCB
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30 Driving Force: Success and Sustainability in the UK Automotive Industry
Cutting edge research and development
A DTI-commissioned report indicated that for the UK the use of hydrogen
as a transport fuel offers significant opportunities for cost-competitive CO2
reduction by 2030.Hydrogen energy could provide competitive CO2 reductions for the UK in
six types of road transport energy chains using fuel cell vehicles. These
chains also offer improved energy security. The chains are defined by their
primary energy source: renewable electricity, nuclear electricity, natural gas
with carbon capture and storage (CCS), coal with CCS, biomass with
optional CCS and novel hydrogen production technologies. None of these
energy chains are readily available today and all require significant changes
to the energy system. However, they are sufficiently promising to be worth
pursuing as options for the UK.
The Government has also announced a 15 million fund over four years
for the demonstration of hydrogen and fuel cell projects. This is in additionto continuing support for hydrogen and fuel cell R&D. Currently around
4 million a year is dedicated to hydrogen R&D across the public sector.
Of this, some 2.5 million is funded by the Engineering and Physical
Sciences Research Council (EPSRC), including the Sustainable Hydrogen
Energy Consortium funded under the EPSRCs Supergen programme.
Additional funding for applied R&D will come from the Collaborative
R&D product under the DTI Technology Programme where 20 million
per annum is earmarked for industry-led research into clean energy
technologies.
The UK Government has welcomed the development of a StrategicFramework for Hydrogen Energy in the UK and is committed toestablishing a Hydrogen Co-ordination Unit that will provide animportant focus and catalyst for hydrogen energy activity in the UK.
Hydrogen and fuel cells
Ford
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Driving Force: Success and Sustainability in the UK Automotive Industry 31
LOOKING
FORWARDThe future is led by demand demand for sustainable
mobility, delivering cleaner, more fuel-efficient vehicles
to a sophisticated audience, produced by an efficient and
productive industry competing on a global stage.
CHAPTER 6
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32 Driving Force: Success and Sustainability in the UK Automotive Industry
We want the volume vehicle
manufacturers to continue to invest
here as part of the UKs rich tapestry
of automotive design, engineering
and manufacturing excellence. We
will attract them through a skilled
workforce, dynamic supply chains,
creative ideas, and innovative
products and processes, helping
them to develop their brands and
differentiate their products in the
marketplace.
The Government is doing everything
it can to create the right business
and regulatory background for the
UK automotive industry to succeed
and to deliver a future deeply rooted
in high added-value manufacturing
and services.
We play to our strengths. The UK
represents 1% of the world
population but it accounts for 5%
of the worlds science. The UK has
the world-beating design and
engineering skills to help OEMs
achieve their goals. The UK is already
a world centre for design and
manufacturing excellence inpowertrain. We need to remain at
the forefront of this industry as new
propulsion technologies emerge.
But far from looking inwards, were
also looking at whats happening in
the US and in Japan, where there
are, for example, real-world trials of
fuel cell cars. We know that we
need to have supply chains capable
of working with these leaders in
the future.
Looking forward
The UK represents 1% ofthe world population butit accounts for 5% of theworlds science.
CASE STUDY The Gibbs Aquada amphibious car exemplifies the diversity of theUK automotive industry.
The vehicle is the result of seven years work by 70 engineers and
designers at the companys headquarters in the Midlands where the
firm was established by New Zealand entrepreneur Alan Gibbs andBriton Neil Jenkins in 1999.
Their aim was to build a production sports amphibian that was fully
compliant with marine and road regulations. It was decided to build the
vehicle in the UK, the home of niche, low volume car manufacture and
Formula 1 engineering.
The engine, placed in a mid/rear position, directly behind the cockpit, is
the lightweight alloy K-series, 175bhp, 2.5-litre V-6 from Powertrain.
On land, this is capable of pushing the vehicle up to 100mph.
On water the same engine drives a jet that expels water at high pressure
to propel the boat like a jet ski, allowing the vehicle to plane across thewater at more than 30 mph. The jet unit is less than one metre long and
weighs just under 40 kg possibly the smallest in existence for its power.
Gibbs Aquada
Gibbs
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Driving Force: Success and Sustainability in the UK Automotive Industry 33
We are keeping our technological
options open, looking at pathways to
low carbon emissions, advanced
gasoline and diesel, more efficient
transmissions, hybrid and fuel cell
technologies, biofuels and hydrogen,
and also making sure that we have a
market here for the next generation
of environmentally-designed cars, to
encourage their manufacturers to
locate in the UK.
We are looking beyond the car,
recognising that the modern road
vehicle is a key component of an
integrated transport system.
Transport that works for everyone is
a key priority for the Government.
Intelligent Transport Systems form an
important part of the UKs delivery
plans for future transport, helping
road users to travel more safely on
less congested roads. The
Governments ITS policy framework
for the roads sector describes the
UKs drive for a joined-up approach
to make the best use of ITS.
The skills base for the car of the
future is just as important as the
technology that will be used to build
it. We are producing world-class
engineers, from traditional
mechanical, to electronic engineers,
recognising that some 40% of the
value of the car is now embedded in
electrical and electronic systems. We
are providing the right environment
for a new generation of chemical
engineers to work on future fuel cell
systems. We are investing massively
in our workforce through the
Automotive Academy in workers
on the shop floor, supervisors and
engineers, and most importantly, in
the leaders of tomorrow.
We are applying our world-
renowned ideas and know-how to
provide solutions.
The automotive industry is crucial to
the UKs future as a high technology,
high wage, knowledge-driven
economy and it is crucial to the UKs
economic success and prosperity.
This brochure describes how the UK
is planning a future which delivers
sustainable mobility; a future that isgood for the motorist, good for the
environment and good for industry.
Connaught Motor
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Driving Force: Success and Sustainability in the UK Automotive Industry 35
Major Powertrain Production Locations
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36 Driving Force: Success and Sustainability in the UK Automotive Industry
APPENDIX
Leading Car Production Locations
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Key Universities for the Automotive Sector
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38 Driving Force: Success and Sustainability in the UK Automotive Industry
APPENDIX
Web links to major contributors to this brochure
http://unitedkingdom.cat.com/
http://www.aisin-europe.com/
http://www.aquada.co.uk/
http://www.astonmartin.co.uk/
http://www.automotiveacademy.co.uk/
http://www.bentleymotors.com/bentleymotors/
http://www.boschautoparts.co.uk/
http://www.caterham.co.uk/
http://www.cenex.co.uk/
http://www.ckeurope.com/
http://www.cnh.com/home.asp
http://www.conekt.net/
http://www.connaughtmotorco.com/
http://www.cosworth-technology.co.uk/
http://www.delphidieselsystems.com/uk/
http://www.denso-id.co.uk/
http://www.dft.gov.uk/stellent/groups/dft_roads/documents/divisionhomepage/030684.hcsp
http://www.dti.gov.uk/sectors_automotive.html
http://www.epsrc.ac.uk/
http://www.ford.co.uk/
http://www.foresightvehicle.org.uk/
http://www.gkn.com/
http://www.goskills.org/
http://www.grouplotus.com/
http://www.honda.co.uk/http://www.industryforum.co.uk/
http://www.innovits.com/
http://www.its-uk.org.uk/
http://www.jaguar.co.uk/
http://www.jcb.com/
http://www.komatsu.co.uk/
http://www.landrover.com/
http://www.ldv.co.uk/
http://www.leyland-trucks.co.uk/
http://www.lowcvp.org.uk/
http://www.matthey.com/index.htm
http://www.mccormick-intl.com/uk/
http://www.mclarencars.com/
http://www.melglobal.com/transport_solutions/
http://www.millbrook.co.uk/
http://www.mini.co.uk/
http://www.mira.co.uk/
http://www.mi-technology.com/
http://www.morgan-motor.co.uk/
http://www.nissan.co.uk/
http://www.perkins.com/
http://www.peugeot.co.uk/
http://www.pilkington.com/europe/uk+and+irel
and/english/default.htm
http://www.pitechnology.com/
http://www.prodrive.com/Intromovie.htm
http://www.ricardo.com/default.aspxhttp://www.rle-international.co.uk/
http://www.rmif.co.uk
http://www.rolls-roycemotorcars.com/
http://www.roush.co.uk/
http://www.siemensvdo.co.uk/
http://www.smmt.co.uk/
http://www.supplychaingroups.co.uk/
http://www.terexcompactequipment.com/
http://www.toyota.co.uk/http://www.tvr-eng.co.uk/
http://www.twi.co.uk/
http://www.vauxhall.co.uk/
http://www.visteon.co.uk/
http://www.zytekgroup.co.uk/
The DTI acknowledges the help and assistance
given by the Society of Motor Manufacturers
and Traders in compiling this brochure.
Further information about SMMT and the
UK automotive sector can be located on
www.smmt.co.uk and www.autoindustry.co.uk
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