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Tim WilliamsChief Executive

‘Challenges and Opportunities in the Automotive Supply Chain’

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AGENDA• SOME AUTOMOTIVE INDUSTRY FACTS AND FIGURES

• SUPPLY CHAIN STRUCTURE

• UK AUTOMOTIVE CHALLENGES

• TECHNOLOGY AND SUPPLY CHAIN ROADMAPS

• THE GREEN AGENDA

• ACTIONS / RECOMMENDATIONS

vm

TIER 1

TIER 2+3

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The Automotive Industry In Wales

• 2 Engine Plants – Ford & Toyota

• 1 System Integrator – Calsonic Kansei

• > 38 International Component Plants

• > 100 Related SME’s• 8 Universities• 18,000 employed • > £3Bn turnover

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SUPPLY CHAIN STRUCTURE

VEHICLE ASSEMBLY PLANT

TIER 1 – MAJOR ASSEMBLIES

TIER 2 + 3 SUB COMPONENTS

GLOBAL V LOCAL

WALES IS A COMPONENT MANUFACTURER PRINCIPALLY AT TIER 1 LEVEL WITH SUPPLY CHAIN DECISION MAKING OUTSIDE OF WALES!

SUPPORTED IN THE MAIN BY SERVICE COMPANIES AND NOT TIER 2OR 3

IT IS RECOGNISED THAT THERE ARE A COUPLE OF NICHE VEHICLE MANUFACTURERSAND REFUSE COLLECTION VEHICLE MANUFACTURERS AND ALSO MOTORSPORTVEHICLE MANUFACTURERS IN WALES.

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CLUSTERS + VALUE NETWORKS

• WE SHOULD LOOK AT CREATING MORE CLUSTERS

– POWERTRAIN – DOOR SYSTEMS– INTERIORS– SERVICE

• VALUE NETWORKS– NEW TECHNOLOGIES

• PRODUCTIV LTD– WALES: PRECISION

ROTARY PRODUCTS» MOTORS,

ELECTRIC TURBOCHARGERS, FLYWHEELS

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UK Auto Challenges• Macro Economic Environment

– Western markets flat with pull from new markets – BRICS• Globalisation / Rationalisation / Localisation

– Regional advantage as lever for global competitiveness – (£v€) Supply Chain and Low Carbon Footprint

• Pressure on Business Performance– Quality, Cost and Delivery, Innovation – Legislation – Funding

- Skills• Climate Change - Impact

– CO₂ Reduction Targets (UK -80% by 2050)• Challenges of Technology

– Vehicle Roadmap – (Automotive Council)– Shortage of skills & capacity to deliver new technology

solutions is driving new approaches• Access to Funds

– Finding finance at the right price

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Technology Roadmap

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Driving Towards a Greener Wales

Driving Towards a Greener Wales

The Climate Change Agenda

OPPORTUNITIES (INCLUDING PUBLIC PROCUREMENT)

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Wales Green Automotive Agenda

• CHALLENGES AND OPPORTUNITIES

ENERGYTRANSPORTINFRASTRUCTUREINDUSTRY

WIND – WAVE - BIO MASREFUSE VEHICLESBUSES

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ACTIONS / RECOMMENDATIONS • CONTINUE THE DIALOGUE WITH UK VEHICLE

MANUFACTURERS AND TECHNOLOGY DEVELOPERS• RE-DEVELOP THE LOW CARBON VEHICLE CLUSTER• CREATE A LOW CARBON VEHICLE / TECHNOLOGY PARK

(Ebbw Vale – Enterprise Zone)• VITAL THAT WE CONTINUE TO DEVELOP A STRONG SKILLS

BASE - WALES’S USP?• WORK WITH WELSH GOVERNMENT FOR FDI AND EXPORTS • ASSIST WITH THE DEVELOPMENT OF THE ‘HYDROGEN

HIGHWAY’ - Low Carbon Economic Area • WORK WITH LOCAL AUTHORITIES ON VEHICLE

PROCUREMENT• IMPROVE THE MARKETING OF WALES COMPETENCIES

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OUR FUTURE

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