The Automotive Council

continuing the acceleration

Dr. Graham Hoare
Ford Motor Company

www.automotivecouncil.co.uk

Automotive Council UK
The Automotive Council was formed in 2009 :

To strengthen and promote sustainable growth of the automotive sector in the UK

through enhanced dialogue and co-operation between UK government and
automotive industry

Industry Chair :
Nigel Stein
CEO - GKN PLC

Automotive Council UK
Approach:

Structure:
Business
Environment
& Skills

Supply
Chain

Technology

Workstreams
A continuous value creation cycle involving all facets of the Automotive Council

Business Environment & Skills Group

Group Chair: Tony Walker, Toyota UK

Main Aims

Optimise business environment for the UK automotive sector

Address skills challenges facing the sector

The group has the following work streams:

UK International
Competitiveness

Business
Environment
Skills

Europe

Labour Productivity

Russia / Industy Collaboration

University
India

Availability of Engineers

Romania
KPI: Survey
- Global Innovation Index

Czech
Republic
KPI: %
Graduates in science, engineering, manufacuring - UNESCO

KPI: Apparent labour productivity* - Euostat

UK International
Competitiveness
11
14
1
1
EUCU

Global

10

EUCU

10

Despite reports that UK's overall productivity is low,

automotive productivity is class leading.
Investment in automotive supply chain will return
increased productivity for UK.

Key Objectives:
UK

Germany

P erceptio n

Relative Strengths

SouthItaly
Korea
Mexico
Japan
Germany
Bulgaria
Romania
France
France
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00
Germany
Spain
Slovak Republic
Note: data sourced
Italy from Eurostat so global rank = EUCU rank
Turkey
Czech Republic
Poland
UK
Australia
KPI: Apparent labour productivity* - Euostat
US
EUCU
Global
Brazil

Strong

Labour Productivity

Analyse UKs international competitiveness

Labour flexibility
Create objective set of KPIs to judge
University / Industry
attractiveness for foreign investment
collaboration
Determine killer facts to demonstrate
UKs
Labour Productivity
R&D tax relief for
competitive advantage
SMEs
Spain

Italy

France

Czech Republic

17

2.8

Slovak Republic

Poland

Romania
Bulgaria

20

40

60

80

100

120

Weak

*GVA per person employed, 000

10

The UK International Competitiveness Study

10

Recommendations:
To promote the UKs key strengths

Approaching Release.

2.15

Despite
reports
that
overall25
productivity
is low,
5
10
15 UK's20
30
automotive productivity is class leading. Weak
Investment in automotive supply chain will return
increased productivity for UK.

Relative Weaknesses
Strong

Germany

Spain

The UK s International Italy

Competitiveness
France
an Objective Scorecard
Czech Republic
Slovak Republic

To take urgent action to tackle the

UKs priority weaknesses

Weak

UK universities are regarded as key asset for U

due to reputation for high quality research and
collaboration. Should continue to develop
4.1
initiatives to enable transfer from research
industrial application.

P erc

Str

Indonesia
0
1
2
3
4
5
6
France
China
Czech Republic
Mexico
India
Brazil
Spain
Thailand
Turkey
Italy
Russia
Poland
Romania
KPI: % Graduates
in science, engineering, manufacuring - UNESCO
Nigeria
Slovak Republic
EUCU
Global
Bulgaria

For review by Automotive

Council
Poland
Romania
Bulgaria
0

Availability of
Engineers
Availability of skilled
operators
2.8
Labour cost
Investment in R&D by
government
R&D tax relief for large
companies

20

40

60

80

100

120

Weak

Wea

Availability of Engineers

11

14
11

10

17

High concern area in perception and actual. Key

20
30
40
50
60
70
80
90
issues are number of engineers completing practica
W
education, then pursuing engineering careers .
Concerted effort by industry, universities and
government to incentivise engineering careers

P erceptio n

UK

Analysis of international competitiveness

of the UK automotive industry

China
Global
Poland
Czech Republic
2
1
Mexico
Germany
France
11
25
Thailand
Turkey
Australia
US
Spain
UK
Slovak Germany
Republic
South
Korea
Australia
Brazil
Japan
SouthCanada
Africa
Indonesia
South
Korea
South Africa
Italy
EUCU

High c onc ern area in perception and actual. Key

issues are number of engineers completing prac tic al
educ ation, then purs uing engineering c areers
2.9.
Conc erted effort by indus try , univ ers ities and
gov ernm ent to incentivise engineering careers

Spain

11 UK

P erceptio n

Strong

Global

Slovak Republic

P ercep

Stro

South Korea
Mexico
Japan
Bulgaria
Romania
France
Germany
Spain
Slovak Republic
Italy
Turkey
Czech Republic
Poland
UK
Australia
US
Brazil

2.1

10

15

20

25

30

Wea

Skills

To provide the pipeline of skills / talent needed now and for the future
industry / government joined forces to form the Automotive Industrial Partnership.

Launched March 2015, The Partnership will support the delivery of the skills roadmap:
Basic Skills

Investing
30 million

Apprenticeships

Graduates

People in Work

New Growth
Technologies

Boost skills
Inspire the next generation
Create new routes into
automotive careers

Unified cross- government and industry effort to deliver a skilled auto industry workforce
for now and for the future.

Supply Chain Group

Group Chair: Dave Allen, Jaguar Land Rover

Main Aims

Establish challenges facing the UK automotive supply chain and

Improving supply chain long-term competitiveness

Maximise business opportunities for suppliers improving access to

finance for the supply chain

The group has the following work streams:

Access to Finance
Capitalising the UK
Business
Opportunities

Long-Term
Competitiveness

Satisfying Demand

Innovation and
Premium
Manufacturing

Supply Chain Group Enabling Growth

Context:

Actions:

6 billion opportunity. OEMs and Tier 1.

LTASC Programme. Investment in CapEX, R&D,

and Skills. (AMSCI funded).
Luxury and niche vehicle suppliers. Meet the
Buyer event at Williams
Tooling finance. Addressing No 1 access to
finance issue for automotive, 30% growth in
bank lending to the sector.
Publications. Providing direction to industry.

Productivity. UK automotive No 1 in Europe

(GVA per employee).

Automotive Investment Organisation. Industry

expertise focused on high value commodities
currently imported.
Investment & Growth. 2Bn of supply chain
investments in the last 5 years generating >25%
employment growth & 40% revenue growth,
for example: Automotive Insulations; Borg
Warner; Brose; Lear; Magal; Plastic Omnium;
Sertec; VTL .
Research. End-to-end understanding of OEM
and Tier 1 demand and capability of smaller
suppliers.

Technology Group
Group Chair : Graham Hoare, Ford

Main Aims

Develop technology roadmaps, future research challenges and

identify where the UK can develop competitive advantage

Advise on automotive R&D investment opportunities to foster a stronger UK

engineering, supply and manufacturing base

Preparation and ownership of the UK Automotive Technology Strategy

The group has the following work streams:

Establish the APC

Manufacturing
Technology

Future Technology
R&D Co-ordination
Intelligent Connected
Vehicle

Energy storage &

management
Design

Technology Workstreams 2015

Energy
Storage

Strengthen World
Class R&D system

IC
Engines

5 Sticky
Technologies

Electric
Machines

Invest [up to 1 billion over 10 years] in a new

Advanced Propulsion Centre (APC)
Improve coordination
coordination and
and collaboration
collaboration with
with
Improve
the academic
academic research
research community
community
the
Improve collaboration/access from EU R&D
funding opportunities
Construct additional roadmaps for future
technology needs

Light
weight
Structures

Clarify Technology
Focus

Intelligent
Mobility

Identify required high value manufacturing

technologies
Create an energy storage roadmap which includes nonelectric solutions
Create
UKintelligent
intelligentmobility
mobilitydemonstration
demonstration
program
Create aUK
program
to test technology and business
businesseffectiveness
effectiveness
Enhance collaboration on innovation and technology
between Motorsport and mainstream automotive
Establish a Design workstream to build UK strength

Future Technology R&D Co-ordination

Goal : Improved co-ordination
between Academic & Industrial
Research

Academic Research Networks

Academic automotive research
Funding bodies
Industry R&D leaders and teams
Added focus on key challenges the
industry needs to solve while
maintaining academic independence
Opportunity to align APC Spokes
with Academic Challenge Networks

Goal : Scan for

Future R&D Focus
Areas / Roadmaps
Three new roadmaps
Future Fuels & Energy
Virtual Product
Development Processes
Next Gen Electrical /
Electronic Architectures

APC Spokes add specific functional, technological

and regional centres of excellence
Power Electronics Spoke - University of Nottingham
Electrical Energy Storage - University of Warwick
Digital Engineering & Test - Loughborough University (London)

Co-ordination with
APC to publish
roadmaps and R&D
agendas

Enhancing the Research through to Manufacture Pipe-line - cohesive coordination of the Eco-system

Intelligent Mobility
The Intelligent Mobility challenge has been to develop a Granular Roadmap to :

Bring value add interventions to the market place

Identify the underpinning technology pathways
Encourage cross industry sector collaboration
Develop the standards, frameworks and guidelines to ensure safety and interoperability

The Traveller Needs & UK Capability Study

Identifies Traveller needs

from 10,000 respondents
Estimates the business
value available
Clarifies the Development
Pathways
Prioritises necessary
technologies

Unique Insight
Tomorrow : Main Plenary Hall : 12:20pm

Created the Cross-Sector IM-PACT UK team

Supporting the Automotive Council UK

Encompassing Data, Communications, Infrastructure

Allowing the Intelligent Connected Vehicle team

To focus on vehicle technology

Technology
Group

Other Work
Streams

IM-PACT UK

Intelligent
Connected
Vehicle

Other Work
Streams

Intelligent Connected Vehicle

The Intelligent Connected Vehicle work stream will be the voice of the vehicle within IM

Inputting to the Automotive Council and the broader IM-PACT UK team

Including; On Road; Off Road; Passenger Cars; Commercial Vehicles; Consumer purchased; Fleets;
Bringing renewed intensity to the vehicle centric technology contribution to IM

Challenges

Optimising for
Connected AND
Autonomous
Efficient development
for real world safety
Customer, Societal,
and Business readiness

Safety
Technology

Driver Assist &

Autonomous

Connected &
Co-operative

Subgroups
1)
Autonomous
AND
Connected

1)
2)

Infotainment
Technology

Technology
Road-mapping
Virtual Design
Verification Process
Creating the Enabling
Environment

Verification Complexity

The Intelligent Connected Vehicle team are now focusing on technology and processes to deliver world
class autonomous and connected vehicles

Intelligent Mobility
Building on the Introducing driverless cars to UK roads competition this initiative :
continues the collaborative Research & Development pathway
aims to encourage development of connected and autonomous vehicles
focuses on three themes connectivity, autonomy and customer interaction

The Connected & Autonomous Vehicles Competition

The Department for Business,

Innovation and Skills (BIS) is to
invest up to 20 million in
collaborative R&D projects and
feasibility studies
Deadline for applications:

30 September 2015.

Tomorrow : Main Plenary Hall : 11:00am

Connected Vehicles and Low Carbon.

Conclusions

Automotive Council continues to be a key architect in progressing UK automotive industry

agenda on Business, Skills, Supply Chain & Technology
Progress evident in all work streams impacting Policy, Investments and activites.

Advanced Propulsion
Centre [APC]
hubs & spokes
Automotive Industrial
Partnership (Skills)
Automotive Investment
Organisation [AIO]
Academic Challenge
Networks

Travellers Needs & UK Capability Study

International Competitiveness Scorecard

Sticky Technology Roadmaps

2013 Automotive industrial policy
IM-PACT UK
Connected Vehicles competition

Technology group now actively seeking out future challenges to supplement

our work in the future

Thank You

www.automotivecouncil.co.uk

Conclusions

Automotive council continues to be key architect in progressing UK automotive industry agenda

on Business, Skills, Supply Chain & Technology
Progress evident in all work streams impacting Policy and Investments

Advanced Propulsion
Centre [APC]
hubs & spokes
Automotive Industrial
Partnership (Skills)
Automotive Investment
Organisation [AIO]
Academic Challenge
Networks

Travellers Needs & UK Capability Study

International Competitiveness Scorecard

Sticky Technology Roadmaps

2013 Automotive industrial policy
IM-PACT UK
Connected Vehicles competition

Technology group now actively seeking out the challenges that should supplement our
work going forward

R&D Co-ordination and Future Technology Workstream

Organised into three specific subgroups:
Improved coordination between
Academic &
Industrial Research

Developed concept of Academic Research Networks

Aligned to APC Spokes where appropriate
Brings together academic automotive related research
Engages with Industry R&D leaders and teams

Communication &
Dissemination of
Roadmaps & R&D
Agendas

Co-ordination with APC to publish roadmaps and R&D

agendas in critical technology areas:
Advanced ICEs, Energy Storage, Electric
Machines & Power Electronics and Lightweight
Structures

Three critical roadmaps to support key focus areas:

Future Transport Fuels & Energy (Published)
Virtual Product Development Processes (In Progress)
Next Gen Electrical/Electronic Architectures (In
Progress/Collaboration with AESIN)

Horizon Scanning
& Future R&D
Focus Areas/
Roadmaps
LCV Sep 2015

19

APC Spoke & Academic Challenge Network - Enhancing Industry

collaboration with the research base:

A key recommendation in the Automotive Strategy is to ensure that the academic community and funding
bodies - reflect the key challenges the industry is seeking to resolve while maintaining academic
independence

Exploring opportunity to
align APC Spokes
(focused on specific
technology areas) with
Academic Challenge
Networks

Challenge Networks:
Inclusive not exclusive Academic Institutions with capability and activity in specific challenge area
Guidance on challenge areas and priorities defined by joint Industry and Academic Advisory Group
Proposals for research assessed on Excellence & Potential Impact
Initial Challenge Network Power Electronics hosted by Nottingham University

LCV Sep 2015

20

Automotive Council UK
Approach:

Structure:

Business
Environment
& Skills

Supply
Chain

Technology

A continuous value creation cycle involving all facets of the Automotive Council

Automotive Council UK
Approach:

Structure:
Business
Environment
& Skills

Supply
Chain

Technology

A continuous value creation cycle involving all facets of the Automotive Council

Future Technology R&D Co-ordination

Goal : Improved co-ordination
between Academic & Industrial
Research

Academic Research Networks

Academic automotive research
Funding bodies
Industry R&D leaders and teams
Added focus on key challenges the
industry needs to solve while
maintaining academic independence
Opportunity to align APC Spokes
with Academic Challenge Networks

Goal : Scan for

Future R&D Focus
Areas / Roadmaps
Three new roadmaps
Future Fuels & Energy
Virtual Product
Development Processes
Next Gen Electrical /
Electronic Architectures

APC Spokes add specific functional, technological

and regional centres of excellence
Power Electronics Spoke - University of Nottingham
Electrical Energy Storage - University of Warwick
Digital Engineering & Test - Loughborough University (London)

Co-ordination with
APC to publish
roadmaps and R&D
agendas

Enhancing the Research through to Manufacture Pipe-line by Co-ordinated Challenge based Research