The UK Automotive Sector has had a major boost in recent weeks with some very important announcements, none more than two major announcements within our own region. The first came when Nick Reilly, Head of General Motors in Europe, provided us with the long awaited news that the new Vivaro van will be built in Luton , securing up to 1500 jobs and more within the supplier network. This decision is very good news for our last remaining volume vehicle manufacturer in the region and will create further opportunities for both the current and future component and service supplier’s. But perhaps more importantly this confirms GM’s on-going commitment to the UK alongside their successful Ellesmere Port plant which produces the Astra.
But further good news was to follow when Nissan announced that the new Qashqai will be built in the UK. The Qashqai is a hugely successful model that rode confidently through the recession at volumes far exceeding any sales predictions. The Qashqai styling and design was a break away from their traditional European range at that time. Engineering and quality of a very high standard and marketed at an attractive price, has made this a real winner and probably secured Nissans presence in the UK for a long time to come.
Interestingly though, some people are unaware of the real significance of this decision. The styling and design of the original Qashqai was carried out at Nissans very own studios in Paddington, London, whilst the component and vehicle development and validation took place at the Nissan European Technical Centre at Cranfield in Bedfordshire. Finally, the vehicle is assembled in Sunderland which is considered to be most productive car plant in Europe. Nissan have also announced an investment of around £192m for the replacement model, however in reality the benefit to the whole engineering and supply community can be multiplied many times over. This all followed their earlier announcement of more than £400m investment into the production of the Leaf model and new EV battery plant in the North East.
At the same time BMW launched a £500m investment into the UK’s Mini production, engine and pressings plants and announced that the next generation Mini will be built in the UK. MG’s owners, Shanghai Automotive Industry Corporation ( SAIC ) have also announced that they will also design, develop and assemble two new models at its Longbridge factory in addition to the current MGTF and MG6 models. Jaguar Land-Rover will also add a further manufacturing plant for engines and add additional vehicle variants which will be developed for both brands.
R & D Centres are also making their mark. TATA, MG Rover and Changan Motors will all expand their facilities in the UK and join the established centres of JLR, Nissan and Ford. The highly successful Motorsport industry also holds an important position in our region and can play an essential role in supporting mainstream automotive through innovation, engineering and component development.
Hybrids and EV’s are also a very important opportunity for the UK both in product innovation and development and for the manufacturing of components for the increasing demands ahead. Our very own Millbrook Proving Ground in Bedford is at the forefront of Hybrid and EV technology, providing highly skilled engineering expertise and facilities for component and entire vehicle design, vehicle evaluation and capability.
This catalogue of news is real recognition of both our region and the UK’s capability in this sector. However, there are further opportunities along the entire supply chain for component manufacturers, toolmakers and equipment and service providers. ……..
It is estimated that the total UK component purchasing is around £7.5bn per annum ……….. of which approximately 36% is bought within the UK. The forward forecasts from the SMMT ( Society of Motor Manufacturers and Traders ) predict that we will have a year on year increase in production lifting us back up to pre 2007 volumes by 2015. This in itself is a potential sales increase of 25%, or £1.8bn. However it doesn’t stop there. The SMMT have been working hard with the VM’s to promote the current UK supply chain and encourage further investment and support from Government. The bottom line is this …… OEM’s and Tier 1’s are certainly reviewing their purchasing strategies towards a localised supplier base, especially following the Japanese disaster earlier this year. Some have already pledged a commitment to support this strategy. If you are already part of the supply chain ……. the opportunities are there and you will have to work hard with your customer to meet their goals. If you are not in the automotive sector, you will need to be aware that this is a very demanding environment, very exciting and rewarding, but it won’t happen overnight.
Richard Cooper -Director of Automotive Specialist Associates Ltd.
With almost 20 years’ experience working for a Global Tier supplier, Richard now provides support to Companies and Organisations in all aspects of Business Development.
T 0044 1582 710307, M 0044 7908 263611, E: mail asaeurope@btinternet.com
