Reduction on CO2 From Vehicles

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• David Malpass
• Senior Operations Manager
• Accelerate

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UK Motor Industry

• Production trends
• Market structure
• Key factors affecting UK auto industry

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Size and Value of UK Industry

• 44,000,000,000 auto manufacturing turnover
• 9 of manufacturing turnover
• 1 total GDP (output)
• 234,000 employees in auto manufacturing
• 821,000 employees dependent on auto sector
• 9 volume car manufacturers

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UK New Vehicle Production 1990 - 2005
CV volumes ease to 200k - but fairly stable Car
output more variation recovering after dip
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Car Production Selected Countries 2002
UK market 4th largest car producer in Europe, 7th
in world Home of largest number of manufacturers
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UK New Car Production 1990 - 2005
Exports key to growth to a/c for 73 of output
in 05
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UK Car Production By Manufacturer 1990 - 2002
Japanese, PAG and BMW takeover
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Products the Key
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Image Skills
UK the home of motor sport
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Exchange Rate Movements
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European new car market 2002
UK market second largest in Europe
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UK New Car Registrations 1989 - 2005
Market hits record in 02. Volumes to hold in 03
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Reasons for Growth

• Good deals, low prices, positive economic setting
• Low prices finance cheaper
• Cars more affordable
• Increased models, wider choice
• Vehicles safer, cleaner and better equipped
• New car market hit 2,563,631 units in 2002
• Market to remain firm _at_2.565mn in 2003
• Modest cooling expected in 2004/05

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Diesel Penetration of UK Car Market 1990 - 2005
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UK New Car Average CO2 g/km 1997 - 2008
174.3g/km in 2002 1.9 below 2001 and 8.2 on
1997
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Low Carbon Vehicle Partnership

• Encouraging cleaner vehicles
• Launched January 2003
• Partnership of Govt, NGOs and industry
• Aim get 10 car under 100g/km by 2012
• Encourage alternative fuelled vehicles
• Create centre of excellence for fuel cells

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Recycling

• End of Life Vehicles (ELVs)
• April 2002 implementation missed
• Partial implementation 3rd Nov 03
• Cost free take-back (Nov 03 Jan 07)
• Heavy metal restrictions (UK Nov 03)
• Re-cycling targets (Jan 06 Jan 15)
• Component marking

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Value of UK Trade in Cars (Deficit) 1995 - 2002
Cars 45-50 total trade. Deficit jumped as
imports penetration hits record
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Pedestrian Protection

• Change vehicle design so safer to pedestrians
• July 2001 agreement with EC
• Directive awaiting Council adoption end
  of 2003
• 1st phase 1st October 2005
• All new types of vehicles tested against head
• And leg injuries (by 31st Dec 2012 all vehicle)
• 2nd phase 1st September 2010
• Tests made tougher (and some compulsory)

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Competing Pressures on the Motor Industry
Air Quality
Mobility/ congestion
Climate change
Globalisation/ UK investment
Employment/ training
Consumer demands
Safety
Manufacturing impacts
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THE IMPORTANCE OF THE SECTOR IN THE WEST MIDLANDS

• 40 of National employment in vehicle production
  direct and indirect 100,000 jobs
• 5.2 of Regional GDP
• Home to major Automotive Assemblers
• Jaguar, Land Rover, Aston Martin, MG Rover,
  Peugeot, London Taxis, JCB, LDV, Whale Tankers,
  Morgan, BMW

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Manufacturing

• MODELS
• Jaguar XJ, XK, S Type ranges
• Land Rover Discovery, Freelander, Land Rover
• MG ROVER 75,45,25,MGF,Streetwise, Van
• LDV Vans
• Morgan Aero 8, Traditional models
• Toyota Avensis ( Derby)
• BMW Mini (Cowley)

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Major 1st Tier Companies

• King Automotive
• Lear Corporation
• Mayflower VS
• NSK
• Perkins
• Stadco
• Turner Powertrain
• Wagon Automotive
• Yuasa Batteries

• Arvin Meritor
• Brose
• Collins Aikman
• Denso
• Eaton Automotive
• GKN
• Goodridge
• Jac Products
• Johnson Controls

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Major Component Areas

• Precision Engineering
• Presswork
• Forging
• Casting
• Plating
• Finishing

• Injection Moulding
• Plastics Processing
• Rubber Components
• Welded Assemblies
• Chemical
• Tool Gauge

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Difficulties

• Skills Shortages
• Investment requirement
• BMW ROVER Crisis
• Globalisation- competition
• Industry restructuring
• New Technologies/ Challenges

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Assistance

• ACCELERATE ACTION PLAN
• 2002- 2007

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