1. Automotive Investment Organisation
UK Trade & Investment
Automotive Investment Organisation
The UK offers investors a great business case underpinned by growing global demand, a world leading research and development ecosystem and the most supportive business environment in Europe for automotive companies.

2. AIO and UKTI
The AIO is a team based in UK Trade & Investment exclusively focused on supporting the UK’s automotive sector, both by supporting further investments, and also by helping companies to export.
The AIO takes strategic direction from the Automotive Council. This means it can:
Help investors by making use of all the advantages of being embedded into a highly effective and functioning civil service framework
Use UKTI’s international network to support companies overseas
…while remaining led by the industry, for the industry.

3. The UKTI Global Footprint
UKTI:160 locations in some 100 markets (98% of world GDP)
Investment capability in 72 Posts, with 240 employees,
Working with UK team to connect:
Clients
WHQs, UK branches, supply chains
With
Government
UKTI, OGDs, partners
universities, sector bodies, funding opportunities

4. AIO Objectives and Targets
Leverage inward investment to deliver long-term and sustainable growth in the UK Automotive Sector.
By taking direction from the Automotive Council...
Increasing the amount of inward investment into the automotive supply chain;
Building and strengthening the Government’s relationships with global headquarters of vehicle makers;
Increasing the amount of foreign investment in automotive sector R&D - particularly in strategic areas;
Assisting UK based automotive supply chain companies with their exports to the new markets
Promoting the image of the UK automotive sector among key decision makers in overseas markets, and promote the investment and trade opportunity
Our key target is 15,000 jobs created or secured by Foreign Direct Investment in the automotive supply chain over the next three years (this is double the number created or secured between 2010 and 2013).

5. What the AIO Can Bring To Your Organisation
Export assistance for all UK-based companies
Point of contact in Government and facilitation of Government support
Automotive Investment Organisation
Highlight your successes and raise the profile of UK automotive
Support with developing investment propositions for overseas HQ
Specialist advice and connections for customers, partners and suppliers
Assist with Funding Initiatives
Provide Export Assistance to Domestic and Foreign Companies in the UK
Act as a key Point of contact to simplify work with HM Government
Provide specializes advice and identify new opportunities
Support foreign companies interested in entering the UK

6. Over the past seven years the UK has emerged as one of the most globally attractive locations for Automotive investment. The foundations for this success have been based on these key areas:
1 - Growing Supply Chain Opportunity:
The UK is experiencing an unprecedented period of growth In production volumes driven by global demand for UK- manufactured vehicles as well as a domestic market that is the fastest growing in Europe resulting in a unique supply-chain opportunity.
Increasingly UK-based OEMs are looking for supply chain proximity to reduce logistic costs, minimise risk and to cater for R&D cycles that are growing ever quicker.
2- Strong Domestic and Export Market:
UK vehicle production volumes reached 1.6m in 2013, overtaking France in passenger vehicle volumes, and the domestic market was the strongest in Western Europe with year on year growth of nearly 11%. Over 80% of UK- built cars were exported with a value of almost £25bn.
3 - Transformational Research & Development:
The UK provides an ecosystem which brings together leading-edge firms, universities, motorsports and funded projects to develop, commercialise and deliver technological innovations in the Automotive sector.
4 - Supportive Business Environment: The UK boasts one of the most progressive and flexible business environments which has made us number one in Europe for foreign direct investment. 6 6 6

7. Domestic Car Market 1. Growing Supply Chain Opportunity UK Spain EU
Germany
Sweden
France
Italy
Source: ACEA 2014

8. Vehicle Plant Locations & Output 2013
1. Growing Supply Chain Opportunity
Vehicle Plant Locations & Output 2013
Land Rover Halewood
Freelander 57,618
Evoque 127,302
Leyland Trucks
Leyland
Leyland Trucks 15,400
Bentley
Crewe
Continental 9,408
Mulsanne 1,088
Alexander Dennis
Larbert
Trucks 1,980
Nissan
Sunderland
Leaf 8,424
Note 24,348
New Note 34,553
Juke 147,954
Qashqai 227,110
New Qashqai 9,367
Optare
Sherburn
Buses 444
Lotus
Hethel
1,369
General Motors
Ellesmere Port
Astra 73,466
Geely (LondonTaxi Co)
Coventry
SAIC MG Motors Birmingham
Toyota
Burnaston
Auris 142,751
Avensis 36,482
Jaguar
Castle Bromwich
F Type 9,466 XJ 18,917
XF 47, XK 2,842
BMW Mini
Oxford
Mini – 174,997
Land Rover
Solihull
Defender 8,362
Discovery 42,907
Range Rover 104,120
Honda
Swindon
Jazz 25,000
Civic 41,840
CRV 71,972
McLaren Woking
1,406
Dennis Eagle
Warwick
Trucks 1,024
Others
Morgan – 542
Caterham – 374
Aston Martin
Gaydon
3,828
General Motors
Luton
Vivaro 43,183
Rolls Royce
Goodwood
3,265
Source: SMMT 2014

9. Engine Production Volumes
1. Growing Supply Chain Opportunity
Engine Production Volumes
Nissan
Sunderland
266,130
Bentley
Crewe
10,496
Ford
Dagenham
787,398
Toyota
Deeside
200,418
BMW
Hams Hall
408,060
Bentley
W12
Ford
Bridgend
741,073
Honda
Swindon
139,741
Jaguar Land Rover
i54
Source: SMMT 2014

10. Projected Production Growth
1. Growing Supply Chain Opportunity
Projected Production Growth
2018 Projection
2.24m
Source: SMMT 2014

11. The £3bn Supply Chain Opportunity
1. Growing Supply Chain Opportunity
The £3bn Supply Chain Opportunity
Component
Opportunity value (£m)
Engine castings
370
Steering systems
220
Trim
170
Harnesses
160
Seating
150
Tyres
140
Alloy wheels
Lighting
130
Electronics (ECU, ESP, ABS, PDC)
110
Engine forgings
External plastics (bumpers, trim)
100
Entertainment/Navigation 90
Bearings 80
Instrument clusters
Glass 70
Hinges
Hot Stampings
Welded assemblies
Component
Opportunity value (£m)
12V lead/acid battery 60
Cast aluminium sub-frames
Brake callipers 50
Drive shafts & CVJs
Engine accessories (alternator, starter, aircon)
Fuel tanks
HVAC assembly
Chassis Suspension Module 40
Misc assemblies (pedals, mirrors, roof rails, grilles etc)
Shock absorbers
Heat shields 30
Oil pans
Small pressings
Transmission components
Large/medium pressings
Steel wheels 20
Carpets
Suspension springs 10
Switchgear

12. Over £10bn invested since 2012
1. Growing Supply Chain Opportunity
Over £10bn invested since 2012
Source: SMMT 2014

13. 2 - Transformational Research & Development
Global Centre of R&D Capability & Motorsport: The UK is home to 4 of the global top 10 Universities, many of which working in collaboration with the Automotive sector to develop and deliver the technologies of the future. The UK is also home to 8 out of the 11 Formula 1 teams.
Leading Automotive R&D Facilities: The UK is home to world class facilities and is the ideal location for automotive R&D supported by investment From OEMs, innovative suppliers and funded Government programmes.
World Leader in Low Carbon Technologies: With world leaders in engine technology including, Ford, Nissan and Jaguar Land Rover working in collaboration with suppliers and supported by large-scale Government funding, the UK has emerged as a leader in the development and commercialisation of low-carbon technologies.

14. UK Capabilities 2. Transformational Research & Development
Advanced Engine Technologies and Systems
The UK is home to leading global engine manufacturers using the country’s technical capabilities to design advanced engines across a diverse range of sectors and engine technologies.
Advanced Manufacturing
Transformational breakthroughs are being made across a number of manufacturing fields, underpinned by the UK’s dominance in areas such as composites, rapid production techniques and advanced joining.
Aerodynamics
Connect with the UK’s extensive aerodynamic expertise from its world-leading aerospace and motorsports industries to dramatically reduce fuel consumption in mass-market applications.
Design Creativity
A design-led automotive sector, serviced by globally renowned centres of excellence and the world’s leading car designers.

15. UK Capabilities (continued)
2. Transformational Research & Development
UK Capabilities (continued)
Electric Machines and Power Electronics
Global vehicle makers are developing exciting future electric-vehicle technologies in the UK, supported by expertise across automotive, rail and power-generation engineering.
Energy Recovery and Storage
Collaborate with the UK’s global pioneers in vehicle energy recovery.
Intelligent Mobility / Intelligent Transport systems
Companies are recognising that the UK’s strengths in communications, electronics, big data and test infrastructure to develop Intelligent Mobility solutions.
Lightweight Design, Materials and Components
The light-weighting expertise grounded in the world’s largest Formula 1 industry and second-largest aerospace sector is key to delivering the transformational weight reduction required for mass-market vehicles of the future.
Systems Integration and Homologation
The UK has world-class expertise and experience in the homologation of vehicles for European markets.

16. 2. Transformational Research & Development
Motorsports
The UK is the global centre of the Formula 1 industry. The technological innovations found in Formula 1 underpin the nine areas of R&D capability identified as the major strengths of the United Kingdom
The UK is home to eight of the 11 Formula 1 teams.
Overall there are 4,500 firms in the UK motorsport sector.
Technological innovations generated though F1 have a trickle down effect into the wider automotive sectors as well as innovative applications in other sectors such as aerospace or pharmaceuticals

17. Motorsport Valley 2. Transformational Research & Development
Source: MIA 2014

18. Motorsport Suppliers 2. Transformational Research & Development
Source: MIA 2014

19. Examples of technology transfer from F1 to commercial road usage

20. 2. Transformational Research & Development
R&D Ecosystem
The combination of UK expertise and its forward-thinking approach gives the country a unique strength in the development of key automotive technologies. The UK’s strong manufacturing and supply chain ecosystem consists of a broad range of innovators that covers the whole development life cycle from initial concept through to commercial launch.

21. World Class Facilities
2. Transformational Research & Development
World Class Facilities

22. Centres of Excellence – High Value Manufacturing Catapults
2. Transformational Research & Development
Centres of Excellence – High Value Manufacturing Catapults
Advanced Forming Research Centre,
Glasgow
Centre for Process Innovation,
Wilton
Advanced Manufacturing Research Centre,
Sheffield
The Nuclear Advanced Manufacturing Research Centre,
Sheffield
The Manufacturing Technology Centre,
Coventry
The National Composite Centre,
Bristol
The Warwick Manufacturing Group,
Coventry

23. Low Carbon Technologies
2. Transformational Research & Development
Low Carbon Technologies
The UK Government and automotive industry are investing heavily to make the UK a world leader in research and development for electric and hybrid vehicles. They have committed £1bn to the new Advanced Propulsion Centre to support the development of next-generation propulsion technologies from research through to mass-manufacture.
Ambitious EU & UK emissions targets are increasing the demand for ultra low emission vehicles , including hybrids and electric vehicles
Regulatory CO2 targets are in place around the world, with the EU targeting a fleet average for new cars of 95g of CO2 per kilometre by 2021.
The UK has a long-term, stable and comprehensive policy framework to support the transition to ULEVs, backed by significant funding commitment of
£400m to 2015 and a further £500m from :
The UK Government’s vision is that by 2050 almost every car and van in the UK will be an ultra low emission vehicle (ULEV), with the UK automotive industry at the forefront of their design, development, and adoption.
Funding to stimulate demand for ultra low emission cars and vans
Support for ultra low emission taxis and buses
Support for the development of infrastructure
Funding for research & development
Similarly, The Proving Factory is helping companies in hybrid power to commercialise their technologies.

24. 3 - Supportive Business Environment
Funding & Support at National Regional and Local level: With innovative programmes at national level including the Advanced Propulsion Centre and the Regional Growth Fund as well as local funding though Local Enterprise Partnerships, there is very strong public support for UK-development initiatives
Strong Relationship Between Government And Industry : Through the SMMT, Automotive Council and the Automotive Investment Organisation, the government and industry are proactively working together to attract investment, boost trade and implement policies that support the continued growth of the UK Automotive sector.
Competitive incentives For businesses: The UK has one of the most competitive corporation tax rates in the EU, low labour costs, flexible legislation, a stable currency and developed infrastructure.

25. A Great Place to do Business
3. Supportive Business Environment
A Great Place to do Business
Excellent labour and
Industrial relations
The most competitive
tax regime
Source: KPMG 2014

26. Competitive Incentives & Key Initiatives
3. Supportive Business Environment
Competitive Incentives & Key Initiatives
Advanced Propulsion Centre (APC): As part of the Automotive Strategy, Government and industry are jointly investing over £1bn over the next 10 years in the APC
Regional Growth Fund (RGF): Over £230m has been allocated to Automotive companies to date.
Innovate UK: A competitive fund supporting investments in technologically driven transport projects – Over £310m has been allocated to Automotive companies to date.
Advanced Manufacturing and Supply Chain Initiative (AMSCI): Funding of £120m for R&D, skills training, and capital investment for supply chain companies.
Ultra Low Emission Vehicles (ULEV): The Government has committed £500m to support the development and uptake of ULEVs all the way out to 2020.
Employer Ownership Funding: Up to 50% contribution to training costs for transferrable skills up to a value of £2m.
R&D Tax credits: R&D Tax Credits is a scheme allowing companies to reclaim a significant percentage of their development costs back in cash whether you are profitable or pre-revenue.
High Value Manufacturing Catapult (HVM): A £200m scheme providing UK business with a gateway to access the best manufacturing talent and facilities in the country.
The Patent Box: provides an effective corporation tax rate of 10% on profits from patents registered in the UK or European patent offices.