The UK Automotive industry

Transition through smart specialisation

Dan Hodges daniel.hodges@bis.gsi.gov.uk

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Outline

• The UK automotive industry• LCVs: opportunity through need• Government strategy• NAIGT – building a roadmap• Automotive Council – identifying technologies• (OLEV – coordination across Government)• (TSB – delivering innovation)

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The UK automotive industry

• Worth £8.5bn value-added • 1.3m cars and 120k commercial vehicles in 2010 – 2.4%

of global output & 8.7% of European assembly • Over 10% of total UK exports • 700k people directly employed • Global centre of excellence for engine development and

production• Over £1.5bn annual spend on automotive R&D• R&D growth of 9% in 2009• Strengths lie in powertrain design and production,

especially engines, and vehicle design and styling

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The need for change• 22% of UK domestic CO2 emissions are from transport

• UK’s adopted legally binding target to reduce emissions

• King Review – examined technologies that could help to decarbonise road transport

• Short and long term solutions needed

• Opportunity for UK firms and workers to adapt and seize opportunity of global ultra-low carbon vehicles market

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Government response

• Government recognised its role in supporting the industry through the transition.

• Set up collaborative process to develop a roadmap whilst also setting out its own strategy.

• Established Office for Low Emission Vehicles as coordinated Government team

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New Automotive Innovation & Growth Team• Launched April 2008, industry-led with facilitation and

remit from Government

• Objective to engage industry and produce recommendations and action plan;– Continued development & world class

innovation– Anticipate, develop, adopt and embrace

technological change– Retain international competitiveness

• Report sets out 20 year vision & longer-term Technology Roadmap

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Technology Roadmap

• Individual manufacturers will prioritise certain technologies to fit brand values, but OEMs share a common view of a high level Technology Roadmap

• Short-term: Improvement of conventional technology

• Medium- & long-term: technology shift

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Technology Roadmap

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Technology Roadmap

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Common Research Agenda

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After NAIGT – UK capability

• 110 companies participate in survey and workshops to;– Map UK R&D activity, capability and readiness across

short, medium & long term technology requirements

• Evidence mapped to the research agenda required to deliver the Roadmap

• Consensus view reached on potential for UK R&D base to deliver to the future requirements of the Roadmap

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Applied Rating Criteria

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RoI potential

• Based on;– Qualitative assessment of effort required to deliver

Roadmap requirements

– Qualitative assessment of potential for UK benefit based on overall market value and UK value capture potential

– Overall assessment of indicative RoI potential, based on effort and benefit

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Scorecard

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UK Automotive Council• UK Automotive Council established in 2009• Establish long-term strategic framework and focus UK

R&D agenda - Test Bed UK• Chaired jointly by Gov and Industry with partners from

across Government • Objectives;

– Create a transformed business environment– Develop further the Technology Roadmaps– Develop a stronger & more competitive supply chain– Provide a stronger public voice for the industry– Ensure a strategic, continuous conversation between

Government and industry

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UK Automotive Council• Supply chain group

– Build consensus

– Enhance dialogue

– Develop vision

• UK Sourcing Roadmap

• Technology group– Technology Roadmaps & Test

Bed UK

– LCV infrastructure

– OEM & supplier R&D

– Academic partnerships

– Intelligent transport system

• 5 priority areas– ICE, energy storage &

management, Intelligent Transport Systems, lightweight vehicle & powertrain structures, electric machines & power electronics

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Conclusions

• Strategic specialisation in LCVs informed by collaboration and consensus

• This enabled the development of a shared vision, technology roadmap, R&D returns scoreboard, collaborative partnerships, join funding for R&D….

• Collaboration continues through Automotive Council, OLEV, TSB, Low Carbon Vehicle Partnership etc.

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Next steps

• Need to consider areas to broaden or deepen the case study;– More detail as to the current and future work of AC

– Other relevant bodies and policies;• OLEV – plug-in car grant, infrastructure, supporting

manufacture and the supply chain• TSB – Low Carbon Vehicles Innovation Platform• Low carbon vehicle integrated delivery programme• Smaller stakeholders interactions with the above

programme