Supplier Readiness. Welcome. October 17 Search for Drive Midlands
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1 Supplier Readiness Search for Drive Midlands October
2
3 Supply Chain Search for Drive Midlands
4 Drive Midlands About Us Our Mission: To support a future-proofed world class automotive supply chain in the Midlands that leads on cost, productivity, technology/innovation and customer satisfaction 1. Support inward investment 2. Develop a robust supply chain 3. Improve partnership working 4. Develop a sustainable operation
5 UK Automotive Industry - OEMs
6 UK Automotive Industry Engine Manufacturing
7 Midlands Assets Vehicle Manufacturers Aston Martin, BMW, Changan, Detroit Electric, Geely/LTC, Jaguar Land Rover, JCB, Norton, Toyota, Triumph Supply Chain Adient, Aisin Seiki, Brose, Continental, Cooper Standard, Dana Axle, Delphi, Denso Corporation, Draexlmeier, Dura, Faurecia, Federal Mogul, Gestamp, GKN, Goodyear Dunlop, IAC, JATCO, Koito, Lear, Magna, Mahle, Panasonic, Plastic Omnium, Robert Bosch, Schaeffler, Tenneco, Thyssen Krupp, Webasto, Yazaki, ZF TRW, Eminox Centres of Excellence HORIBA MIRA, AVL, Ricardo, Warwick Manufacturing Group, National Automotive Innovation Centre, National Transport Design Centre, Advanced Propulsion Centre
8 JLR Investment New 20m Technical Centre to undertake manufacturing, personalisation and commissioning programmes for JLR Special Vehicle Operations division Invested 1.5bn in the Solihull plant in the last 5 years 400m invested in the Castle Bromwich plant in support of new XF - the largest single investment in the history of the Castle Bromwich plant. Investing 450m to expand its Engine Manufacturing Centre site totals 1bn. The 150m National Automotive Innovation Centre (NAIC) will open in second half of It will provide a state-of-the-art facility for JLR s advanced research team and collaborative partners from academia, the supply chain & other industries JLR s UK Supply Chain has invested 2bn, and there is a further 250m in the pipeline
9 OEM Programmes & Change Points Nissan Currently sourcing Juke & Qashqai/X-trail which is the biggest sourcing process in UK Automotive history, next generation Leaf will follow in 12 months, will take plant to 600,000 units production. Strategic & targeted drive to increase UK content JLR Currently sourcing next generation Range Rover & Range Rover Sport. Due to number & complexity of JLR vehicles sourcing is a continual process. JLR now biggest UK vehicle production source & remain focussed on UK supply, XE has >50% UK content Honda Positive launch for new Civic & establishing HUM as export hub, including to USA. Major change point opportunity is next generation CIVIC 21/22 MY, HUM target significant increase in UK content BMW MINI replacement is in planning with sourcing process starting, UK production of electric MINI announced May Approach to UK content seems positive, but platform sourcing responsibility in Munich Toyota Major factory investment committed to prepare for next Auris although vehicle decision not yet confirmed
10 OEM Programmes & Change Points London Electric Vehicle Company (Geely) Taxi programme delivering significant UK content opportunities, many introduced by AIO. Further vehicle programmes will follow including light van Bentley Curretly conducting review of major commodities & taking opportunities to commit sourcing closer to OEM production AML New SUV to be produced from all new production plant in Wales, support given stipulates UK content requirements, sourcing in process Rolls Royce NewSUV launches soon, next vehicle sourcing 12 months McLaren Announced new composite production site to deliver insourcing of a major cost driver of their business Lotus Purchase by Geely confirmed JLR Ingenium next generation committed for UK & in the planning Ford Panther & dragon engines committed to UK & in ramp up
11 OEM Programmes Nissan Sourcing Qashqai & X Trail on common platform with Renault Kadjar & Koleos, overall global volume 1.9m UNITS. Mitsubishi Outlander just added which is likely to give powertrain input for PHEV. Export opportunity for suppliers Nissan RFQs: Juke RFQs released & sourcing betweenq3 &Q Qashqai/X Trail in release, sourcing between Q & Q1 2018
12 Auto Council Report Launched 20 th June 2017 Key Highlights: New Automotive Council study shows 44% of parts used to make UK cars now come from UK suppliers, up from 41% in 2015 UK car part makers boost turnover by 3.7bn since 2011 Long term trend for reshoring continues local content was just 36% in 2011
13 The 4bn Supply Chain Opportunity Component Opportunity Value ( m) Component Opportunity value ( m) Engine Castings V Lead/Acid Battery 90 Steering Systems 330 Cast Aluminium sub-frames 90 Trim 255 Brakes 80 Engine Forgings 255 Drive Shafts 80 Pressings & hot stampings 240 Fuel tanks 75 Seat components 225 Engine Accessories 75 Alloy Wheels 210 HVAC assemblies 75 Lighting 210 Misc. (pedals, mirrors etc.) 60 Electronics 170 Shock Absorbers 60 Plastic mouldings 150 Oil pans 30 Entertainment & navigation 135 Premium finish 50 Bearings 120 Weather strips 50 Instrument clusters 120 Switchgear 30 Glass 110 Other 520 Hinges 105
14 Tier 2+ Activities Major progress in increasing UK tier 1 content to 44%, measurable consistent data available Tier 2 content less clear, general industry view suggests 20%- 30% UK content Potential additional 2bn opportunity in Tier 2+ supply chain Vast majority of Tier 1 suppliers in UK supply chain are not UK owned and have centralised purchasing structures not in UK Core technologies are stretched due to extraordinary increase in UK OEM volumes & major activities in aerospace & rail Initiatives such as MTB are key to developing opportunities Most significant is signalling by OEMs i.e. Nissan sourcing project
15 Future Supply Chain Electric Vehicles Some key products: Battery Pack battery cells & casing Traction motor electric motors Inverter power electronics On board charger power electronics DC/DC Converter power electronics Accessory power module power electronics AC Compressor & cooling - various
16 Future Supply Chain Electric Vehicles Potential Components/Competencies Injection Moulding connectors, casings Stampings motor & battery assembly Windings motor Castings casings Pipework/tubing cooling system Magnets motor Machined components varous Chip fabrication electronics Power electronics assembly electronics Chemical processing battery Metals processing motor & battery
17 Product Roadmap 2017: Passenger Car
18 Drive Midlands Our Geography
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