Industrial Strategy Automotive Sector Deal
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Industrial Strategy Automotive Sector Deal
Industrial Strategy Automotive Sector Deal
Foreword
For decades, the UK’s
automotive industry has
powered our economy
forward. Today, automotive
firms from around the world
choose to set up shop here,
citing our history of excellence,
skilled workforce and world-
leading supply chains.
As ever, partnership will be pivotal. In the
next 10 years, the sector will see more
change than in the previous hundred.
From the engines that power our cars,
to the way we control them and our
attitudes to owning them, technology
is changing what the industry looks
like and where money can be made.
New conditions require new thinking and,
as a country, we are extraordinarily well-
placed to provide this. Our rich history
of scientific discovery includes the
lithium-ion battery, which was invented
in this country and already powers
millions of vehicles around the world.
And in the future, the automotive
sector will shape our response to the
Grand Challenges articulated in our
Industrial Strategy, such as Clean
Growth and the Future of Mobility —
transformations which will forever
change how people live, work and travel.
2
As ever, partnership will be pivotal. This For over a century, the UK has
first Automotive Sector Deal builds on written the history of the automotive
the longstanding partnership between industry. As we open the sector’s
the government and industry, brought to next chapter, let’s work together
life through the Automotive Council and to make sure the technologies of
will be followed by further commitments. tomorrow are developed, tested and
As a result of the Sector Deal, both manufactured right here in the UK.
government and industry will invest
about a quarter of a billion pounds
to develop and manufacture electric
vehicles. This includes the Faraday
Battery Challenge, which will drive the
technologies to power electric vehicles
in the future, as well as £80 million
for a new state-of-the-art automotive Rt Hon Greg Clark MP
battery development facility in Secretary of State for Business,
Coventry. This investment marks yet Energy and Industrial Strategy
another step forward on our journey
towards mass producing electric
batteries and vehicles here in the UK.
The deal also aims to create a
world-leading testing environment
for Connected and Autonomous
Vehicles. Using our renowned test
tracks, we will improve the safety of
these vehicles by pushing them to the Nigel Stein
limits of their speed and handling. Chief Executive GKN plc and
Automotive Council Chairman
And, finally, the government is investing
in a new industry-led programme
to raise the competitiveness of UK
suppliers to match the best in Europe.
3
Industrial Strategy at a glance
Industrial Strategy Automotive Sector Deal
We will create an economy that boosts productivity and earning
power throughout the UK
Industrial Strategy is built on 5 foundations
Ideas
the world’s most innovative economy
People
good jobs and greater earning power for all
5
foundations of
Infrastructure
a major upgrade to the UK’s infrastructure
productivity
Business environment
the best place to start and grow a business
Places
prosperous communities across the UK
We will set Grand Challenges to put the United Kingdom
at the forefront of the industries of the future:
AI & Data Economy Clean Growth
We will put the UK at the We will maximise the advantages
forefront of the artificial for UK industry from the
intelligence and data revolution global shift to clean growth
Future of Mobility Ageing Society
We will become a world We will harness the power of
leader in the way people, innovation to help meet the
goods and services move needs of an ageing society
4
Key policies include:
Ideas Business Environment
``
Raise total research and ``
Launch and roll out Sector Deals –
development (R&D) investment to partnerships between government
2.4 per cent of GDP by 2027 and industry aiming to increase sector
``
Increase the rate of R&D tax credit productivity. The first Sector Deals are
to 12 per cent in life sciences, construction, artificial
intelligence and the automotive sector
``
Invest £725m in new Industrial
Strategy Challenge Fund programmes ``
Drive over £20bn of investment
to capture the value of innovation in innovative and high potential
businesses, including through
People establishing a new £2.5bn Investment
``
Establish a technical education Fund, incubated in the British
system that rivals the best in the Business Bank
world to stand alongside our world- ``
Launch a review of the actions that
class higher education system could be most effective in improving
``
Invest an additional £406m in maths, the productivity and growth of small
digital and technical education, and medium-sized businesses, including
helping to address the shortage of how to address what has been called
science, technology, engineering the ‘long tail’ of lower productivity firms
and maths (STEM) skills
Places
``
Create a new National Retraining
Scheme that supports people to re-skill, ``
Agree Local Industrial Strategies
beginning with a £64m investment that build on local strengths and
deliver on economic opportunities
for digital and construction training
``
Create a new Transforming Cities
Infrastructure fund that will provide £1.7bn for
``
Increase the National Productivity intra-city transport. This will fund
Investment Fund to £31bn, supporting projects that drive productivity by
investments in transport, housing improving connections within
and digital infrastructure city regions
``
Support electric vehicles through ``
Provide £42m to pilot a Teacher
£400m charging infrastructure Development Premium. This will test
investment and an extra £100m the impact of a £1,000 budget for
for the plug-in car grant high-quality professional development
``
Boost our digital infrastructure with for teachers working in areas that
over £1bn of public investment, have fallen behind
including £176m for 5G and £200m
for local areas to encourage roll out
of full-fibre networks
An independent Industrial Strategy Council will assess our progress
and make recommendations to government.
4
Executive Summary The Automotive Sector Deal, the first in a rolling series of intended deals with the sector, builds on the partnership between the government and industry that has been in place since the Automotive Council was established in 2009, setting the direction and long-term strategic priorities for the sector. This partnership has yielded results: built, powered and driven means the vehicle and engine output has industry must continue to adapt to increased, productivity has improved maintain its position as a global leader. and the proportion of UK components It must take decisions now to ensure in each vehicle produced in the it remains both attractive to invest United Kingdom is rising (44 per in and central to the UK economy. cent in 2016, up from 36 per cent The UK automotive industry with its in 20111). For the seventh successive diverse range of products, spanning year expenditure in research and volume, premium and niche vehicles, development (R&D) by motor vehicle has benefited from the European manufacturers has increased, and in market, with highly integrated supply 2016 it reached £3.4bn, growing by chains and a significant demand 20 per cent on the previous year2. for UK-built cars across the region. These achievements matter not just In total, half of all UK automotive to the industry but to the country. It is exports go to the European Union. through these successes that the sector As the UK leaves the EU, the industry is able to provide over 390,000 high- welcomes the government’s ambition quality, well-paid jobs, both directly in to achieve a new relationship that vehicle manufacturing and through the is free from tariffs and without supply chain3, increasing prosperity friction to trade – factors that are across the country. The industry is an fundamental to the competitiveness international success story, generating of the UK automotive sector. over £40bn of export revenue in 20164, The proposals contained within and helping the UK to maintain a this Sector Deal are designed to reputation for engineering innovation complement this ambition and are and manufacturing excellence. aligned to the foundations set out in Production levels achieved a 17-year the Industrial Strategy – ideas, people, high in 2016 with 1.7 million vehicles infrastructure, business environment rolling off production lines5. Today the and places. They support its vision sector faces a new set of challenges. for the UK to be the world’s most Significant changes in how cars are innovative economy; for good jobs 6
and greater earning power for all; in R&D from £9.5bn to £12.5bn, as well
for a major upgrade to the UK’s as a commitment to work with industry
infrastructure; to be the best place to boost spending on R&D to 2.4 per
to start and grow a business; and for cent of GDP by 2027. This will increase
prosperous communities across the UK. to 3 per cent over the longer term.
We have prioritised an initial set This Sector Deal demonstrates
of proposals, which have been how the automotive sector can
agreed between the Automotive play an important part in meeting
Council and the government. It this commitment by investing
is intended that this deal is the in the development of the next
first of several with the sector. generation of vehicles.
Ideas In recognition of this, the Automotive
Council asked Richard Parry-Jones,
The ambitions set out in the Industrial
former Chief Technical Officer and
Strategy White Paper are underpinned
Head of Global R&D Operations at
by a commitment to world-class
Ford Motor Company, to conduct a
innovation. It set out a further increase
sector-led review into accelerating
in R&D investment of £2.3bn in
the transition to the manufacture of
2021/22, raising total public investment
ultra-low and zero emission vehicles.
7
The evidence gathered from the review our competitive advantage of
underpinned the rationale for the being able to test anywhere in the
landmark Faraday Battery Challenge6. UK today. It is estimated that the
Through the Faraday Battery CAV sector will be worth £28bn
Challenge, the government is to the UK economy by 20357.
investing £246m over four years Business Environment
into a programme of competitions
The Industrial Strategy White Paper
focused on the research, innovation
sets out the government’s ambition to
and scaling up of battery technology.
make the UK the best place to start and
In the coming months the government grow a business. A key part of this is
will publish a strategy for the transition our globally competitive corporate
to zero emission road transport, tax rate of 19 per cent, our continuous
ensuring the UK continues to be a focus on regulatory reform and
world leader in the development, our ability to attract global talent
manufacture and use of these vehicles. and disruptive start-ups. Our
The UK is also pursuing a position in the challenge is to improve how we
global vanguard of the development, spread the best practice of our
demonstration and deployment of most productive businesses.
connected and autonomous vehicle Our key policies include launching
(CAV) technologies, capitalising Sector Deals – and automotive is an
on our commitment to R&D and early partner. We are also establishing
8
a new £2.5bn investment fund Infrastructure
incubated in the British Business Bank As we set out in the Industrial Strategy
to drive investment in innovative White Paper, having modern and
and high potential businesses. A new accessible infrastructure throughout
UK-backed and industry-led brand the country is essential to our
for CAV – Meridian – was set up to future growth and prosperity.
convene UK industry around shared
priorities, and showcase our approach We have announced an increase in
internationally. Meridian will cement the National Productivity Investment
the UK’s status as the go-to destination Fund to £31bn, supporting investments
for the development and testing of in transport, housing and digital
CAV and new vehicle technologies. infrastructure. We are investing over
£1bn in boosting digital infrastructure,
Manufacturing is crucial to the including £176m for 5G and £200m
economy, providing 10 per cent of for local areas to encourage roll
the UK’s Gross Value Added (GVA), out of full-fibre networks.
generating around 50 per cent of
our exports and accounting for Our investments in infrastructure
70 per cent of business-led R&D8. are among the government’s most
Advanced manufacturing supply significant interventions in the economy
chains are highly complex and globally and we are ensuring that they actively
integrated, with components often support our long-term productivity and
crossing borders several times. drive the growth of emerging industries.
Although we have a strong position, To accelerate the transition to electric
there is a major opportunity to vehicles we are creating a new £400m
deepen the supply chain presence for Charging Infrastructure Investment
the sector in the UK. We therefore Fund (£200m from the government
intend to launch a new supply chain to be matched by private investors);
competitiveness and productivity and providing £200m Office for Low
improvement programme targeting Emission Vehicles R&D funding over
areas where key businesses need to the current spending review period;
improve to match the best in Europe. £100m new funding for the plug-in car
The programme will provide bespoke grant; £40m R&D funding (matched by
training and streamlined business industry) for new charging technologies
processes to help build the integrated including on-street and wireless projects;
supply chain we need in the UK to initiating a £20m vehicle-to-grid
manufacture the future generation of R&D competition, a £23m Hydrogen
vehicles at volume. This will support the Transport programme and making
industry’s ambition to increase the level a commitment that the government
of UK content by value in domestically- will lead the way, making 25 per cent
built vehicles to 50 per cent by 2022. of all cars in the central government
fleet ultra-low emission by 2022.
9
Places People The Industrial Strategy set out our goal The government set out its vision to of helping prosperous communities to create good jobs and greater earning thrive across the UK. We are creating a power for all in the Industrial Strategy. new Transforming Cities fund that will To do this, we need to ensure that we provide £1.7bn for intra-city transport. are equipping citizens for jobs shaped This will fund projects that drive by next generation-technology. productivity by improving connections The growth of the UK automotive within city regions. We are also sector and the transition to the next committing to agree Local Industrial generation of vehicles will require Strategies that build on local strengths people with new skills and a substantial and deliver on economic opportunities. upskilling of the existing workforce. The 2017 CAV testbed competition This requires a coordinated national aimed to create the world’s most and local approach through established effective CAV testing ecosystem by institutions such as the Institute for creating a number of distinct test Apprenticeships and supporting capabilities which would work together the development of the new T level as part of an open testing environment. qualifications. The government and Collaborative projects supported under industry are committed to taking this initiative form part of a unique forward this agenda through the cluster running from our automotive next phase of Sector Deals. heartlands in the West Midlands, Under the direction of the Automotive through our innovation centres near Council, and with initial grant support Oxford and Milton Keynes, to London. from the government, the industry has The portfolio of projects linked to established the Automotive Industrial the Advanced Propulsion Centre Partnership for Skills (AIP). The AIP (APC), a ten-year, £1bn initiative, has developed a skills roadmap for the funded 50:50 by government and sector, which is guiding steps to tackle industry to support the development critical skills shortages as the sector of low carbon technologies, include grows and evolves. A key element is to participants spread across the UK, boost apprenticeships. The automotive and is supported by a network of sector has been at the forefront of Centres of Research Excellence. apprenticeship reforms, leading the These centres, the ’APC spokes’, development and piloting of the new are linking industrial and academic ‘trailblazer’ standards, and setting up communities from Newcastle to the Apprenticeship Matching Service. Brighton and from Nottingham to Bath. 10
Automotive
Sector Deal
Key commitments
11Industrial Strategy Automotive Sector Deal
Government action to support the automotive sector
Ideas
Advanced Propulsion Centre to support fundamental
` £500m over 10 years to 2023 to academic research);
research, develop and industrialise - £80m for the Faraday National
new low-carbon automotive Battery Manufacturing
technologies in the UK. Development Facility; and
Automotive R&D - £88m for the Faraday Battery
` £225m from 2023 to 2026 to Challenge Innovate UK programme.
support R&D in the sector9. Shaping the future of mobility
Transition to ultra-low and ` £250m to position the UK
zero emission vehicles as a global leader in the
` £246m for the Faraday Battery development and deployment
Challenge to make the UK a of connected and autonomous
world leader in the design, vehicles (CAVs). This includes:
development and manufacture - £150m for collaborative
of batteries for the electrification R&D projects; and
of vehicles. This includes: - £100m for CAV testing
- £78m for the Faraday Institution infrastructure.
(100 per cent public funding
Business Environment
Supply chain competitiveness and productivity improvement
` £16m funding subject to business competitive UK supply chain for
case for an industry-led national future volume vehicle production.
supplier competitiveness and A robust monitoring and evaluation
productivity improvement framework will be set up to measure
programme to support a the success of this programme.
sustainable and internationally
12Industry action to support the automotive sector
Ideas
Advanced Propulsion Centre Battery Manufacturing
``
£500m match funding for Development Facility; and
collaborative R&D projects; and ``
£59m match funding for the
``
Match funding to support Faraday Battery Challenge
APC and its core activities. Innovate UK programme.
Automotive R&D Shaping the future of mobility
``
£225m match funding ``
£56m funding for the
for collaborative R&D CAV collaborative R&D
from 2023 to 2026. projects to date; and
Transition to ultra-low and ``
Match funding for the £100m
zero emission vehicles CAV testing infrastructure.
``£80m funding over the
working lifetime of the National
Business Environment
Supply chain competitiveness and productivity improvement
In order to support the industry’s chain companies participating in the
ambition to increase the value competitiveness and productivity
of UK content in domestically improvement programme.
produced vehicles to 50 per ``
Vehicle manufacturers and Tier
cent by 2022 , industry will: one suppliers will take a leading
``Implement a single scalable role in identifying key strategic
productivity improvement suppliers and take part in the
programme; and governance of programme.
``Match fund at least £16m
(contribution in kind) from supply
13Government action to support the automotive sector
Business Environment
``
£100m new funding for the Plug- at work, to come into effect in
In Car Grant to help consumers April 2018. This will support
buy battery electric vehicles. the roll out of electric vehicle
``
From April 2019, Government will chargepoints at workplaces.
exempt zero-emission capable ``
25% of cars in central Government
taxis from the VED supplement department fleets will be ultra-
that applies to expensive cars, low emission by 2022, and the
consulting in advance on Environment Agency will ensure
how to define such taxis. all its cars are ultra-low emission
``
Provide a Benefit in Kind exemption by 2025, and stop buying or
for employees offering free leasing diesel cars immediately.
charging for electric vehicles
Infrastructure
``
£23m hydrogen transport ``A new £400m electric car
programme to increase the Charging Infrastructure
number of publicly accessible Investment Fund (£200m new
refuelling stations and increase Government investment to be
the uptake of fuel cell vehicles. matched by private investors).
``
£20m to support vehicle-to- ``
£40m R&D funding from the
grid projects in order to create National Productivity Investment
a smarter energy system, while Fund (matched by industry),
increasing the numbers of to support new charging
electric cars on UK roads. technologies for on-street and
wireless charging projects.
1415
Ideas
Moving to ultra-low and investment is required to deliver the
zero emission vehicles necessary transformation of automotive
Advances in electrification must be manufacturing – including a UK ‘giga-
made by manufacturers to meet the factory’ capable of producing the
government commitment to ending quantity of battery cells needed to meet
sales of conventional petrol and diesel the future demand for batteries from
cars and vans by 2040. Currently vehicle-makers as well as establishing
only one per cent of total automotive the requisite supply chains of the
production comprises electric future. The UK faces tough competition
vehicles10 and continued international from Germany and China, which have
competitiveness of the manufacturing established themselves as leaders
base is dependent on the sector making in the development of batteries.
the transformation to new ultra-low Advanced Propulsion Centre
and zero emission technologies.
The Advanced Propulsion Centre (APC)
The UK produced 1.7 million cars is the coordination hub for managing
in 201611. Our engine sector is the transition to ultra-low and zero
even larger, producing 2.5 million emission vehicles. This is a £1bn
internal combustion engines for commitment between the government
vehicles in the same year12. UK and the automotive industry over 10
production of internal combustion years which aims to position the UK at
engines is worth £7bn per year, the the cutting edge of the development
majority of which are exported13. and commercialisation of next
The strategic transition from traditional generation low carbon technologies.
powertrains – the components and
Richard Parry-Jones’s
systems that generate the power
review into accelerating the
to move the vehicle, such as fuel
manufacture of ultra-low and
tanks, engines and transmissions – to
alternatives such as batteries, electric
zero emission vehicles
motors and the associated power The aims of the review were to:
electronics needed to control them, ``
establish the UK as a world
represents a significant opportunity leader in R&D in battery and
for the automotive sector. This brings electric traction technologies;
significant benefits, with the value of
``
support the complete spectrum
the electric powertrain two to three
of electric vehicles (EVs),
times higher than that of the internal
including hybrids, pure battery
combustion engine. However, significant
EVs and fuel cell EVs;
1617
Case study: the APC
The GKN Hybrid Power flywheel capability, additional collaboration
stores energy mechanically in for all partners, and the development
a high-speed carbon rotor. This of the next generation flywheel, with
innovation was first used in top- 120 kilowatt peak power output from
flight endurance racing, helping to a 1 kilowatt hour energy storage
power Audi’s R18 e-Tron Quattro to system that can be manufactured
a podium finish in four consecutive for mass market applications.
Le Mans 24-hour races. The latest design has the potential
The APC’s Gyrodrive project for cross-sector development,
sought to further develop and including with the UK Ministry of
test this technology for use Defence. Testing has been completed
in the hybrid bus market. on machinery in the agricultural
The technology was rolled out to an technology sector. The work has
operational fleet of 35 buses. This also supported the growth of
project has resulted in increased skills, iNetic, an innovative UK enterprise,
which collaborated in the project.
``
fundamental research to innovation
and scale-up. This approach – joining
up these three stages to market in a
``
way no other country has done – will
drive a significant change in the way
the UK turns world-leading research
into market-ready technologies.
``
The Faraday Battery Challenge is a
government investment of £246m
over four years to help UK businesses
seize the opportunities presented
by the transition to a low carbon
The evidence gathered from the economy. It will ensure the UK leads
review provided the rationale for the the world in the design, development
landmark Faraday Battery Challenge. and manufacture of batteries for
the electrification of vehicles.
Faraday Battery Challenge
The Faraday Battery Challenge will This programme will be shaped not
support R&D in three stages across just by its projects but also by two new
the technology spectrum, from critical national centres. The first of
18these, the £78m Faraday Institution14, The facility will also provide support
was announced on 2 October 2017. for training and skills development.
The institution brings together It will work with partners across
the expertise and insight from UK education and business and, in
its seven founding partner particular, the Faraday Institution,
universities, industry partners which has committed to leading
and other academic institutions to the establishment of a national
accelerate fundamental research curriculum for training in batteries.
to develop battery technologies. This centre is to be hosted by Coventry
The second of these centres is the and Warwickshire Local Enterprise
National Battery Manufacturing Partnership in collaboration with
Development Facility15. The Warwick Manufacturing Group. This
government is investing £80m follows a competition overseen
in this independent, open-access, by the APC and Innovate UK.
state-of-the-art centre, which will The final element is the Faraday
be responsible for taking the most Battery Challenge Innovate UK
promising early and mid-range battery programme, which has £88m
and development activities to the point secured from the Industrial
of being ready for manufacture. Strategy Challenge Fund.
19To date, £40m of funding has been The government is investing £250m
awarded to 27 innovative projects through to 2021, matched by industry,
involving 66 organisations. These in collaborative R&D and developing
projects will improve production CAV testbed infrastructure.
techniques, operational performance Of this funding, £150m is being invested
and methods for recycling and the in collaborative R&D and feasibility
recyclability of battery packs. study projects. This includes self-driving
Shaping the future of mobility car trials in Bristol, Coventry and Milton
Keynes, and in Greenwich in south
CAVs have the potential to save lives,
London, which will conclude in 2018.
improve our travel experience and
deliver more accessible transport.
The UK has an opportunity to establish
a global leadership position in the
demonstration and deployment of
CAV technologies, building on our
competitive regulatory environment.
This must evolve with the times
to support the emergence of new
technologies and new business models.
The government will ensure the UK
continues to have one of the most
open environments in the world for
transport innovation and new services.
The government’s ambition is that
fully self-driving cars, without a human
safety operator, will be on UK roads
by 2021. We will make our regulatory
framework world-leading, including
updating our national code of practice
for the testing of automated vehicles
without a human safety operator, and
by working with the Law Commission
on proposals for a long-term regulatory
framework for self-driving vehicles.
2021
Industrial Strategy Automotive Sector Deal Business Environment Supply chain competitiveness The AIO has been successful in and productivity improvement securing investment from strategically UK vehicle makers have worked closely important suppliers able to produce the with the government’s Automotive high value components that the UK’s Investment Organisation (AIO) since world-class vehicle-makers require. 2013 to increase the production This has underpinned the increase in capacity and capability of UK suppliers. the value of components purchased Research by the Automotive Council from UK suppliers from 36 per cent in March 201516 identified an additional of 1.3 million vehicles in 2011 to 44 per £4bn per annum of components that cent of 1.7 million vehicles in 201717. UK vehicle makers would consider However, there is agreement that sourcing from UK-based Tier one coordinated action is required to suppliers, i.e. those suppliers who supply improve the competitiveness of direct to the vehicle maker – subject to businesses further down the supply their international competitiveness. chain. This is of particular importance, 22
due to the increasing complexity of workforce and leadership skills
vehicles whose sub-systems demand in companies and implement
the input of multiple suppliers, along streamlined business processes to
with increased customisation, and improve operational efficiency.
shorter vehicle lifecycles. Vehicle This single, scalable approach will allow
makers have well established supplier supply chain companies to undertake
support programmes in place improvement projects ranging from
and invest substantial resources six months to three years. This will
in sharing their knowledge and have the double benefit of making
expertise in lean manufacturing and UK suppliers more internationally
employee development with their competitive; supporting the industry’s
strategically important suppliers. ambition to increase the value of UK
The automotive industry is looking to content in domestically produced
expand this support, building on the vehicles to 50 per cent by 2022
success of its Long Term Automotive and be more able to win business
Supply Chain Competitiveness in growing markets abroad.
(LTASC) programme. It is leading The government is committed
on the development of a national to investing in an industry-led
manufacturing competitiveness supplier improvement programme
and productivity improvement that will be rolled out in 2018.
programme. This will develop
Future proposals
We have prioritised an initial set of boundaries further, and if the UK wants
proposals, which have been agreed to win in this market it must become
between the Automotive Council more efficient in getting products to
and the government. It is intended market. The rise of digital design and
that this deal is the first of several testing has the potential to reduce
with the sector. The Automotive the cost and time of developing a
Council is already considering its vehicle, and UK-based firms need
priorities for 2018. These include not just to keep pace, but to lead in
for example, new work on digital areas where we have a comparative
design and manufacturing. advantage. A formal proposal is being
developed by industry and will be
Digital design and manufacturing presented in 2018. A further range
It is not just how a car is powered and of proposals in other areas are also
driven that will change the industry; under consideration in the Automotive
it is also how a car is designed and Council and its working groups for
built. The already highly competitive prioritisation in the year ahead.
automotive industry is pushing the
23Places
Shaping the future of mobility
The government is investing £100m These projects form part of a cluster
to create a world-leading ecosystem that is the first of its kind in the world,
for testing CAVs using existing UK running from the UK’s automotive
assets and capabilities including heartlands in the West Midlands,
communication technologies, virtual through our innovation centres near
environments, controlled environments, Oxford and Milton Keynes, to London.
and public testing environments. This This cooperative approach brings
is being coordinated through the new together the best of the UK
Meridian industry brand, which will also automotive sector with strong
seek to convene UK industry around a adjacent industries including fintech,
set of long-term strategic priorities. artificial intelligence and insurance.
Case study: work on CAVs by Streetwise
The Streetwise consortium, led by the Streetwise will demonstrate that
autonomous technology developer self-driving vehicles are able to
FiveAI, secured a government R&D safely co-exist with other road
grant of £12.8m to launch a fleet users, and operate in complex
of self-driving passenger service urban environments.
vehicles that will operate alongside Many globally leading AI academic
London’s existing transportation in research groups are based in
2019. FiveAI leveraged this to attract the UK. This project establishes
a £14m venture capital investment. the UK as a global leader in the
commercialisation of the science in
autonomous vehicle technology.
2425
Case study: Advanced Propulsion Centre – APC8
The Advanced Propulsion Centre to secure international investment.
platform (APC) was established The APC8 winning projects are:
as a 10 year £1bn joint investment E-Prime – A project led by Ford’s
between government and industry. UK based Global Manufacturing
The platform, including the new Engineering team working with
APC8 winning projects supports 36 machine tool supply chain partners to
major R&D projects worth £589m, develop process and equipment for
targeting a saving in excess of 34m production of ultra-high volume next
tonnes of carbon dioxide and creating generation electrified powertrain
or safeguarding 20,500 jobs. In systems. This will include the
addition to its core competitions, development of new digitisation tools
APC supports industry consensus for both the design, operation and
road-mapping, the acceleration of monitoring of manufacturing plants.
companies developing cutting-edge
technology (especially small and ACe-Drive - Development of GKN’s
medium enterprises), technology- future generation e-Drive system
focused academic communities platforms, utilising high speed electric
(spokes) and the development machines and advanced high speed
of future supply chains. power electronics. In conjunction with
Nottingham University, this project
The three successful projects aims to further grow UK capability
awarded in the latest competition, in the design and manufacture of
APC8, reflect the industry’s drive eMachines and power electronics.
toward greater electrification of
future vehicles. Supported by grants VERBIUS – Development of future
worth in excess of £26m, these state of the art electric hybrid vehicle
projects align with Industrial Strategy systems for JLR, in conjunction with
universities and businesses across the
investments ensuring that the UK
UK. The project aims to significantly
continues to reap the benefits from improve the vehicle system efficiency
the transition to ultra-low and zero- through utilisation of innovative
emission vehicles by continuing to electronic systems and componentry.
build the agile, innovative and cost
competitive supply chain needed
26The Advanced Propulsion Centre ‘Spoke Network’
The APC has established communities This network supports the transfer
of excellence across the country of technology between our research
centred around key universities and industrial base to accelerate the
with expertise in strategic low commercialisation of cutting edge ideas.
carbon propulsion technologies.
27Industrial Strategy Automotive Sector Deal
Implementation plan
Key deal activities
Date Milestone
Oct 2017 Faraday Institution announced
Nov 2017 National Battery Manufacturing Development Facility
announced
Faraday Battery Challenge Innovate UK programme –
phase 1 competition winners announced
Jan 2018 Automotive Sector Deal announced
Faraday Battery Challenge Innovate UK programme –
phase 2 competition opens
CAV simulation and modelling competition
APC9 competition opens
Spring 2018 CAV Testbed phase 2
Summer 2018 CAV4 competition
Jan 2019 Annual review of the Automotive Sector Deal
28Governance
Implementation of the Automotive Sector Deal will be overseen
by the Automotive Council, which will review progress
against objectives at each of its quarterly meetings.
Separate governance groups for the Once Sector Deals enter the
Faraday Battery Challenge, Meridian implementation phase, bi-annual
and the Supply Chain Competitiveness progress reports will be provided
and Productivity programme will be for ministers in the Department
established to oversee their respective for Business, Energy and Industrial
parts of the Sector Deal and will inform Strategy. The Automotive Council
the Automotive Council of progress. will be subject to challenge sessions
from government ministers on an
annual basis as part of the overall
Sector Deals programme.
29Industrial Strategy Automotive Sector Deal
References
1. Growing the Automotive Supply Chain: 11. The Society of Motor Manufacturers
Local Vehicle Content Analysis, report for and Traders (2016), https://www.smmt.
the Automotive Council by Holweg, M., co.uk/vehicle-data/manufacturing/
Padgett, T. and Davies, P. (September 2015) and https://www.smmt.co.uk/wp-con-
2. Office for National Statistics (Business tent/uploads/sites/2/SMMT-Motor-In-
Enterprise Research and Develop- dustry-Facts-2017_online_May.pdf
ment, UK: 2016 https://www.ons.gov. 12. The Society of Motor Manufacturers
uk/economy/governmentpublicsecto- and Traders (2016); https://www.smmt.
randtaxes/researchanddevelopment- co.uk/vehicle-data/manufacturing/
expenditure/bulletins/businessenter- https://www.smmt.co.uk/wp-content/
priseresearchanddevelopment/2016 uploads/sites/2/SMMT-Motor-Indus-
3. Office for National Statistics Workforce try-Facts-2017_online_May.pdf
Jobs and Employment multipliers 13. Auto Council working paper, Internal Com-
4. Office for National Statistics bustion Engines: UK opportunities, 2013.
Trade in Goods by Industry 14. Update from the Department of Busi-
5. The Society of Motor Manufacturers ness, Energy and Industrial Strategy
and Traders (2017), https://www.smmt. (2017), https://www.gov.uk/government/
co.uk/vehicle-data/manufacturing/ and news/business-secretary-announc-
https://www.smmt.co.uk/wp-content/ es-founding-partners-of-65-million-bat-
uploads/sites/2/SMMT-Motor-Indus- tery-technology-research-institute
try-Facts-2017_online_May.pdf (the 15. Update from the Department of Busi-
current link takes you to registration ness, Energy and Industrial Strat-
numbers we want production numbers) egy (2017), https://www.gov.uk/
6. Update from the Department of Busi- government/news/government-in-
ness, Energy and Industrial Strategy (July vestment-into-faraday-scale-up-fa-
2017), https://www.gov.uk/government/ cility-to-make-uk-a-world-lead-
news/business-secretary-to-estab- er-in-battery-innovation
lish-uk-as-world-leader-in-battery-technol- 16. Automotive Council (2015), Growing
ogy-as-part-of-modern-industrial-strategy the Automotive Supply Chain: the Op-
7. Transport Systems Catapult (2017), ‘Market portunity Ahead, https://www.automo-
forecast for connected and autonomous tivecouncil.co.uk/wp-content/uploads/
vehicles’, https://www.gov.uk/govern- sites/13/2015/03/Growing-the-UK-au-
ment/uploads/system/uploads/attach- to-supply-chain-March-2015.pdf
ment_data/file/642813/15780_TSC_Mar- 17. Automotive Council, (2016), Growing
ket_Forecast_for_CAV_Report_FINAL.pdf the Automotive Supply Chain: Local
8. National Account; ONS Trade in Goods Vehicle Content Analysis, https://www.
by Industry; ONS BERD (Table 2) automotivecouncil.co.uk/2017/06/new-
report-growing-the-automotive-supply-
9. HM Treasury Spending Review and Au-
chain-local-vehicle-content-analysis-2/
tumn Statement 2015 https://www.gov.
uk/government/uploads/system/uploads/ Image references
attachment_data/file/479749/52229_
Blue_Book_PU1865_Web_Accessible.pdf P17 Flywheel energy storage system
10. The Society of Motor Manufacturers P25 LUTZ driverless vehicle
and Traders (car production for 2016) P29 MINI Plant, Cowley, Oxford. Credit: Flickr
- SMMT. Photographer: James Lyon
30Industrial Strategy Automotive Sector Deal © Crown copyright 2018 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk.Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available from: www.gov.uk/beis Contact us if you have any enquiries about this publication, including requests for alternative formats, at: enquiries@beis.gov.uk 32
You can also read
