@DriveMidlands

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Supplier ReadinessWelcome

October 17 2017

@DriveMidlands

Search for Drive Midlands

Supply Chain Growth

Drive Midlands – About Us

1. Support inward investment

2. Develop a robust supply chain

3. Improve partnership working

4. Develop a sustainable operation

Our Mission:

To support a future-proofed world class automotive supply chain in the

Midlands that leads on cost, productivity, technology/innovation and

customer satisfaction

UK Automotive Industry - OEMs

UK Automotive Industry – Engine Manufacturing

Midlands Assets

Centres of Excellence HORIBA MIRA,

AVL, Ricardo, Warwick Manufacturing

Group, National Automotive Innovation

Centre, National Transport Design Centre,

Advanced Propulsion Centre

Vehicle Manufacturers Aston Martin,

BMW, Changan, Detroit Electric,

Geely/LTC, Jaguar Land Rover, JCB,

Norton, Toyota, Triumph

Supply Chain Adient, Aisin Seiki, Brose,

Continental, Cooper Standard, Dana Axle,

Delphi, Denso Corporation, Draexlmeier,

Dura, Faurecia, Federal Mogul, Gestamp,

GKN, Goodyear Dunlop, IAC, JATCO,

Koito, Lear, Magna, Mahle, Panasonic,

Plastic Omnium, Robert Bosch, Schaeffler,

Tenneco, Thyssen Krupp, Webasto,

Yazaki, ZF TRW, Eminox

JLR Investment

New £20m Technical Centre to undertake manufacturing, personalisation and commissioning programmes for JLR Special Vehicle Operations division

Invested £1.5bn in the Solihull plant in the last 5 years

£400m invested in the Castle Bromwich plant in support of new XF -the largest single investment in the history of the Castle Bromwich plant.

Investing £450m to expand its Engine Manufacturing Centre –site totals £1bn.

The £150m National Automotive Innovation Centre (NAIC) will open in second half of 2017. It will provide a state-of-the-art facility for JLR’s advanced research team and collaborative partners from academia, the supply chain & other industries

JLR’s UK Supply Chain has invested £2bn, and there is a further £250m in the pipeline

OEM Programmes & Change Points

Nissan – Currently sourcing Juke & Qashqai/X-trail which is the biggest sourcing process in UK Automotive history, next generation Leaf will follow in 12 months, will take plant to 600,000 units production. Strategic & targeted drive to increase UK content

JLR – Currently sourcing next generation Range Rover & Range Rover Sport. Due to number & complexity of JLR vehicles sourcing is a continual process. JLR now biggest UK vehicle production source & remain focussed on UK supply, XE has >50% UK content

Honda – Positive launch for new Civic & establishing HUM as export hub, including to USA. Major change point opportunity is next generation CIVIC 21/22 MY, HUM target significant increase in UK content

BMW – MINI replacement is in planning with sourcing process starting, UK production of electric MINI announced May 2017. Approach to UK content seems positive, but platform sourcing responsibility in Munich

Toyota – Major factory investment committed to prepare for next Auris although vehicle decision not yet confirmed

OEM Programmes & Change Points

London Electric Vehicle Company (Geely) – Taxi programme delivering significant UK content opportunities, many introduced by AIO. Further vehicle programmes will follow including light van

Bentley – Curretly conducting review of major commodities & taking opportunities to commit sourcing closer to OEM production

AML – New SUV to be produced from all new production plant in Wales, support given stipulates UK content requirements, sourcing in process

Rolls Royce – NewSUV launches soon, next vehicle sourcing 12 months

McLaren – Announced new composite production site to deliver insourcing of a major cost driver of their business

Lotus – Purchase by Geely confirmed

JLR – Ingenium next generation committed for UK & in the planning

Ford – Panther & dragon engines committed to UK & in ramp up

OEM Programmes – Nissan Sourcing

Qashqai & X Trail on common platform with Renault Kadjar & Koleos, overall global volume 1.9m UNITS. Mitsubishi Outlander just added which is likely to give powertrain input for PHEV. Export opportunity for suppliers

Nissan RFQs: Juke RFQs released & sourcing betweenQ3 &Q4 2017. Qashqai/X Trail in release, sourcing between Q3 2017 & Q1 2018

Auto Council Report

Launched 20th June 2017

Key Highlights:

New Automotive Council study shows 44% of parts used to make UK cars now come from UK suppliers, up from 41% in 2015

UK car part makers boost turnover by £3.7bn since 2011

Long term trend for reshoring continues – local content was just 36% in 2011

The £4bn Supply Chain Opportunity

Component Opportunity Value (£m) Component Opportunity value (£m)

Engine Castings 550 12V Lead/Acid Battery 90

Steering Systems 330 Cast Aluminium sub-frames 90

Trim 255 Brakes 80

Engine Forgings 255 Drive Shafts 80

Pressings & hot stampings 240 Fuel tanks 75

Seat components 225 Engine Accessories 75

Alloy Wheels 210 HVAC assemblies 75

Lighting 210 Misc. (pedals, mirrors etc.) 60

Electronics 170 Shock Absorbers 60

Plastic mouldings 150 Oil pans 30

Entertainment & navigation 135 Premium finish 50

Bearings 120 Weather strips 50

Instrument clusters 120 Switchgear 30

Glass 110 Other 520

Hinges 105

Tier 2+ Activities

Major progress in increasing UK tier 1 content to 44%, measurable consistent data available

Tier 2 content less clear, general industry view suggests 20%- 30% UK content

Potential additional £2bn opportunity in Tier 2+ supply chain

Vast majority of Tier 1 suppliers in UK supply chain are not UK owned and have centralised purchasing structures not in UK

Core technologies are stretched due to extraordinary increase in UK OEM volumes & major activities in aerospace & rail

Initiatives such as MTB are key to developing opportunities

Most significant is signalling by OEMs i.e. Nissan sourcing project

Future Supply Chain – Electric Vehicles

Some key products:

• Battery Pack – battery cells & casing

• Traction motor – electric motors

• Inverter – power electronics

• On board charger – power electronics

• DC/DC Converter – power electronics

• Accessory power module – power electronics

• AC Compressor & cooling - various

Future Supply Chain – Electric Vehicles

Potential Components/Competencies

Injection Moulding – connectors, casings

Stampings – motor & battery assembly

Windings – motor

Castings – casings

Pipework/tubing – cooling system

Magnets – motor

Machined components – varous

Chip fabrication – electronics

Power electronics assembly – electronics

Chemical processing – battery

Metals processing – motor & battery

Product Roadmap 2017: Passenger Car

Drive Midlands – Our Geography