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Mike Hawes

Chief Executive

SMMT

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Agenda

Session 1

10:10 – 10:25

10:25 – 10:40

10:40 – 11:00

11:00 – 11:15

11:15 – 11:25

Automotive Council activities:

Automotive Investment Organisation

opportunities update

Technology Group update

Strengthening the upstream supply chain

Business Environment and Skills Group update

Panel discussion

Lawrence Davies, Deputy CEO,

Automotive Investment Organisation.

Jerry Hardcastle, General Manager –

Innovation and Performance Projects,

Nissan and AC Technology Group

Chairman

Prof Jon King, Manager, Research and

Development, Tata Steel

Tony Walker, Deputy Managing Director

- Corporate, Production Control, Toyota

UK

All (Mike Hawes facilitator)

11:25 – 11:55

Coffee break and networking

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Agenda

Session 2

11:55 – 12:10

12:10 - 12:25

12:25 – 12:40

12:40 – 13:10

13:10 – 13:20

Industry Outlook:

OEM experience and supplier expectations:

UK automotive industry – Building confidence

and capability

Building successful APC partnerships

UK Investment: Cosworth case study

Autonomous driving and the connected car

Panel discussion and closing remarks

Michael Mychajluk, Supply Chain and

External Engagement Manager,

Jaguar Land Rover

James Thompson, Purchasing Manager

- Powertrain, Ford Motor Company

Kirsty Andrew, Sales Director, Cosworth

Hugh Dickerson, Head of Automotive,

Google

All (Mike Hawes facilitator)

13:20 – 14:00 Lunch and networking

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The UK Automotive Sector

+730,000 jobs

dependent on

automotive

140,000 in

manufacturing

£60.5bn turnover £12bn value added

Industry annually invests

in R&D

2.5 million engines

Over 1.5 million cars annually

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UK export market diversity a key strength

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Overview UK automotive supply chain

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European recovery under way

• September 2014 was the 13th consecutive month with year-on-year rises in EU registrations.

• Reflects pent-up demand returning and major new model launches, continued availability of cheap finance and government intervention in some markets

• 9M/14: EU = +6.4% y-o-y, with Spain +17.2%, UK +9.1%; modest growth in France, Italy and Germany

Source: ACEA

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Global new car market up

• Global car markets up 2.62m units (4.6%) YTD

• The US, Western Europe and especially Asia made positive contributions

• Eastern Europe and Latin America are down

• 2014 forecast of 78.3m units (+3.8%)

Source: Polk

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UK car manufacture (1970-present)

Car manufacture Forecast

UK automotive manufacturing strengthening

2017 target

+2.0m

2013 results

1.5m

1972 peak

1.9m

Source: SMMT PIE data

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UK Competitiveness

• UK economy provides a solid platform for

industry growth

• UK automotive manufacturing performing strongly with significant investment by industry

• Highly skilled and flexible labour force - sector productivity growth outstripping rest of the economy at c.6% p.a

• Supported by a large and growing domestic market

• Government fully engaged and recognises importance of sector

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The Environmental Challenge

Source: ICCT 2013

Global CO2 Regulation

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Air quality – UK context

• Increased media & political attention on air quality – diesels in spotlight

• Automotive industry made significant investments in technology to address CO2 and

air quality driven by Euro 6

• Integrated approach needed involving all stakeholders

Key policy challenges o Nitrogen dioxide emissions o Ultra-Low Emission Zone by 2020 o Implications for future vehicle taxation o Emissions legislation and standard

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SMMT 2015 MANIFESTO PRIORITIES

• Cross-party commitment to long-term industrial strategy: Ensuring that existing mechanisms to support ambitions for industrial strategy, such as the Automotive Council are maintained in the next Parliament and beyond.

• Creating the right conditions for investment: Implementing policies that create an

internationally competitive business environment for the automotive industry, making the UK a leading location for investment.

• Positioning the UK as a global leader on innovation: Enhancing support measures for research and development that bolster the UK’s manufacturing base and promote investment in new technologies – including design, powertrain and connectivity

• Supporting ultra-low emission vehicles and a strong, sustainable vehicle market: Guaranteeing funding and support for ultra-low emission vehicles and committing to a long-term, consistent and coordinated approach on vehicle taxation.

• Maintaining a strong UK voice in Europe: The UK’s membership of the European Union is fundamental to the current and future success of the UK automotive industry. The next government should ensure that the UK maintains a strong voice in Europe.

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Communications & external perceptions