1. Lawrence Davies Deputy CEO, Automotive Investment Organisation September 2013

2. Prepared by the UK Automotive Council, launched July 2013 Prepared by the UK Automotive Council, launched July 2013 A Strategy for growth and sustainability in the UK Automotive sector: A Strategy for growth and sustainability in the UK Automotive sector:  diverse, dynamic, growing, globally competitive  making a large and growing economic contribution to the UK  developing and manufacturing low and ultra-low emission vehicles and technologies  supported by a highly skilled workforce and strong supply chain  inspiring young people to careers in engineering and manufacturing Challenges and opportunities: Challenges and opportunities:  Skills, Business Environment, Innovation and Technology, Supply Chain

3. Auto Council & Industrial Strategy Auto Council & Industrial Strategy £6bn invested by OEMs past 2 years £6bn invested by OEMs past 2 years

4. ComponentOpportunity value (£m) Engine castings370 Steering systems220 Trim (door cards, headlining, plastics etc)170 Harnesses160 Seating150 Tyres140 Alloy wheels140 Lighting130 Electronics (ECU, ESP, ABS, PDC)110 Engine forgings170 External plastics (bumpers, trim)100 Entertainment/Navigation90 Bearings80 Instrument clusters80 Glass70 Hinges70 Hot Stampings70 Welded assemblies70 ComponentOpportunity value (£m) 12V lead/acid battery60 Cast aluminium sub-frames60 Brake callipers50 Drive shafts & CVJs50 Engine accessories (alternator, starter, aircon)50 Fuel tanks50 HVAC assembly50 Chassis Suspension Module40 Misc assemblies (pedals, mirrors, roof rails, grilles etc)40 Shock absorbers40 Heat shields30 Oil pans30 Small pressings30 Transmission components30 Large/medium pressings30 Steel wheels20 Carpets20 Suspension springs10 Switchgear10

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

7. Events to promote the UK auto industry and broker deals: Oval ‘meet the buyer event’ Oval ‘meet the buyer event’ Goodwood launch of the Automotive Industrial Strategy Goodwood launch of the Automotive Industrial Strategy Companies met with: Individual meetings with OEMs Individual meetings with OEMs Meetings with potential supply chain investors Meetings with potential supply chain investors Also working closely with: Automotive Council Automotive Council SMMT SMMT UKTI overseas network UKTI overseas network

8. Visited To Date/Upcoming Liverpool City Region Cheshire & Warrington Leicester & Leicestershire Swindon & Wiltshire NorthamptonshireOxfordshire North East & Sunderland Birmingham & Solihull/ Marketing Birmingham South East Midlands Derbyshire & Nottinghamshire Leeds City Region Black Country Visited To Date/Upcoming Liverpool City Region Cheshire & Warrington Leicester & Leicestershire Swindon & Wiltshire NorthamptonshireOxfordshire North East & Sunderland Birmingham & Solihull/ Marketing Birmingham South East Midlands Derbyshire & Nottinghamshire Leeds City Region Black Country Understanding the local offer

9. Reception with over 90 senior people from the global automotive industry attending Reception with over 90 senior people from the global automotive industry attending Proposition booklet prepared to promote the opportunities in the UK automotive sector Proposition booklet prepared to promote the opportunities in the UK automotive sector Business meetings arranged between the AIO and 14 potential investors, to build relationships and present opportunities in the UK Business meetings arranged between the AIO and 14 potential investors, to build relationships and present opportunities in the UK Minister of State for Business and Enterprise, Michael Fallon, attended key meetings Minister of State for Business and Enterprise, Michael Fallon, attended key meetings Presented to CLEPA Board Presented to CLEPA Board

10. All OEM’s investing in the UK – over £6bn to date All OEM’s investing in the UK – over £6bn to date All OEM’s want to purchase more in UK All OEM’s want to purchase more in UK £3bn targeted commodities £3bn targeted commodities AIO formed to support investors AIO formed to support investors Government supporting UK manufacturing Government supporting UK manufacturing with competitive Corporation Tax, AMSCI, with competitive Corporation Tax, AMSCI, RGF schemes, Industrial Strategies etc. RGF schemes, Industrial Strategies etc. LEP’s supporting with local offer LEP’s supporting with local offer

11. Back up slide

12. £3 billion Target commodities and companies UK offer – business environment and ecosystem National capability UK business environment (tax, EU, skills) Automotive Strategy Relationship with EU £3 billion demand National funding ‘pots’ Innovation landscape Local capability Enterprise zones, city deals Clusters Local OEMs and T1’s Skills – FE colleges Local assets e.g. Catapult Local University Local funding