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MIA  MOTORSPORT INDUSTRY ASSOCIATION

M2Auto - £3 billion of additional new business from UK automotive OEMs is available and they need new suppliers to meet demand...says Autmotive Council Survey

21 Aug 2012

“Growing UK capacity in the automotive supply chain is a priority “ says Business Minister, Vince Cable

Purchasing spend, of the fourteen UK vehicle makers who responded to a recent Automotive Council Survey, has reached £23.6 billion, increasing by £3 billion since 2011, of which £8.4 billion is spent with UK suppliers but they, actively, want to buy £3 billion more.

UK supply opportunities stretch across a wide range of vehicle components - from high value forgings and castings to consumables, like batteries or interior parts. As an example, with the UK producing 2.5 million engines a year, one of the most valuable opportunities was £540 million of engine parts.

Speaking recently, Business Secretary Vince Cable, co-chair of the Automotive Council said: “The strength and depth, of the UK supply chain, has not kept pace with the level of investment we’ve recently seen by vehicle manufacturers in the UK. Growing UK capacity in the automotive supply chain, or bringing it back from overseas, is a priority. Through the Automotive Council, we are working to make UK supply chain companies aware how much more new business they could win in the UK."

Professor Richard Parry-Jones, co-chair of the Automotive Council said, “ Our 2012 survey shows that, with more low carbon vehicles coming onto the roads, this is creating new supply chain opportunities as well. Capability assessments show that UK technology providers are well placed to benefit from this growing demand, particularly in areas such as energy storage and intelligent mobility.”

See where UK companies can win a bigger share of this business  - ‘Growing the UK automotive supply chain – the road forward 2012 update’ can be found at http://www.bis.gov.uk.

2012 compared to 2011 purchasing spend and new opportunities:

 

2011 report

Estimated current position

Estimated current opportunity

Respondents' spend with UK suppliers

£7.4 billion

£8.4 billion

£11.4 billion

Respondents' total spend

£20.6 billion

£23.6 billion

£23.6 billion

Purchases across total industry (Source ONS, BIS estimates)

£28.8 billion

£32 billion

£32 billion

6. New sourcing opportunities for UK suppliers taken from the Growing the UK automotive supply chain – the road forward 2012 update.

Component

Value of opportunity
£ millions

Engine castings

370

Steering systems

220

Trim (door cards, headlining, plastics etc)

170

Harnesses

160

Seating

150

Tyres

140

Alloy wheels

140

Lighting

130

Electronics (ECU, ESP, ABS, PDC)

110

Engines forgings

170

External plastics (bumpers, trim)

100

Entertainment/Navigation

90

Bearings

80

Instrument clusters

80

Glass

70

Hinges

70

Hot Stampings

70

Welded assemblies

70

12V lead/acid battery

60

Cast aluminium sub-frames

60

Brake callipers

50

Drive shafts & CVJs

50

Engine accessories (alternator, starter, air conditioning)

50

Fuel tanks

50

HVAC assembly

50

Chassis Suspension Module

40

Misc assemblies (pedals, mirrors, roof rails,grilles)

40

Shock absorbers

40

Heat Shields

30

Oil pans

30

Small pressings

30

Transmission components

30

Large/medium pressings

30

Steel wheels

20

Carpets

20

Suspension springs

10

Switchgear

10

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