Sandy Burgess Chief Executive

The Scottish Motor Trade Association Member owned, member driven and member led. Represents almost 1,000 members sites, with turnovers ranging from several thousands to a growing number who count their turnover in billions. We operate 4 subsidiary brands. Trading Partners our buying group, now buying over £1,000,000 worth of tyres per annum. Scotsure MBI our used vehicle warranty company, sells over 6,000 policies per annum via our members. Skills Solutions our training arm which has over 340 Modern Apprentices all employed in our sector within Scotland. MOT QMS our MOT Quality Management System where we offer compliance checking against the guidelines set out by DVSA, safeguarding our member and the consumer.

The Scottish motor business landscape Scottish new car market traditionally around 10% of the UK total market at around 245,000. Scottish market more predictable in that we have a higher proportion of private purchasers against rest of UK. The Motability share of Scotland’s new car market is over 12% per annum and rising. All Scottish registration numbers start with the prefix S. There are over 4,700 separate enterprises operating within the Scottish business landscape who are registered as automotive businesses. There are over 45,000 employed within these businesses. Automotive sector accounts for almost 6% of Scotland’s GDP with over £12 billion. We have 2,007 active MOT testing stations across Scotland and the Islands, we also have a number of islands who enjoy exclusion rights! Scottish new car market stable on upward travel last three years. Scotland’s roads have an estimated 2.7 million vehicles using them. Electric vehicle ownership rising very slowly (September share 144 units or 0.33%) Used market very strong especially in the late plate nearly new market. Dominance across central belt and north east of Scotland by traditional “family business” units such as; Arnold Clark Parks Motor Group John Clark Motor Group Macrae & Dick Eastern Western Motor Group Phoenix Car Company

The Automotive Industry and the UK Economy

2014 full year Nissan Sunderland Marque No. manufactured 500,238 374,355 178,993 172,215 121,799 77,836 75,152 10,614 Land Rover Halewood Vauxhall Ellesmere Port Bentley Crewe Jaguar Castle Bromwich Toyota Burnaston Land Rover Solihull Honda Swindon MINI Oxford Source: SMMT PIE data 2014 – 1,528,148 (+1.2%) UK car manufacturing output by site (>10k)

UK car manufacturing output by site (<10k) McLaren Woking Marque No. manufactured 4,381 3,967 3,054 1,751 1,492 1,376 464 461 LTC Coventry MG Longbridge Caterham Dartford Lotus Hethel Morgan Malvern Rolls-Royce Goodwood Aston Martin Gaydon Source: SMMT PIE data

Alexander Dennis Bus/Coach UK commercial vehicle manufacturing by site 2014 – 70,010 (-20.1%) Marque No. manufactured 43,567 3,967 3,054 1,751 1,492 1,376 464 Optare bus Leeds Leyland Trucks Leyland Land Rover Light 4x4 Solihull Dennis Eagle Trucks Warwick MINI Van Oxford IBC Van + minibus Luton Alexander Dennis Bus/Coach Guildford Source: SMMT PIE data

UK engine manufacture by site 2014 – 2,394,688 (-6.2%) Nissan Sunderland Marque No. manufactured 1,533,280 279,385 226,618 226,133 118,638 10,614 N/A Bentley Crewe JLR i54 Toyota Deeside Honda Swindon BMW Hams Hall Ford Dagenham Ford Bridgend Source: SMMT PIE data

Bringing driverless vehicles to market

Conditional automation Urban Automated Driving Full end-to-end journey Defined levels of automation L0 L1 L2 L3 L4 L5 Level Driver Driver only Assisted Partial Automation Conditional automation High automation Full automation Driver continuously in control of speed and direction Driver continuously performs the longitudinal or lateral dynamic driving task Driver must monitor the dynamic driving task and the driving environment at all times Driver does not need to monitor the dynamic driving task nor the driving environment at all times; must always be in a position to resume control Driver is not required during defined use case System performs the lateral and longitudinal dynamic driving task in all situations encountered during the entire journey. No driver required System performs the lateral and longitudinal dynamic driving task in all situations in a defined use case System performs longitudinal and lateral driving task in a defined use case. Recognises its performance limits and requests driver to resume the dynamic driving task with sufficient time margin Automation System performs longitudinal and lateral driving task in a defined use case The other driving task is performed by the system No intervening vehicle system active Example: Park Assist Traffic Jam Assist Highway Patrol Urban Automated Driving Full end-to-end journey

Four overarching challenges Technology Policy Behavioural Business models

Impact of connected and autonomous vehicles in 2030 +£51bn +320,000 Additional jobs impact +1% Impact on GDP (2030) Value added annually by 2030 (at 2014 prices) JOBS +25,000 Jobs in automotive manufacturing created +25,000 Serious accidents prevented (2014-2030) +2,500 Lives saved (2014-2030)

CO2 The story so far

How does this relate?

The relevance? The motor vehicle opposite was built in? 1903 So what’s the relevance? It’s an ELECTRIC car! The internal combustion engine has lots of miles and years left to run. The future is exciting, here’s to the next 112 years with the Scottish Motor Trade Association.