Innovation for UK Automotive Success How to Make a Difference 19th February 2015

Innovation for UK Automotive Success Reflect on the Automotive Industry UK Introduce the Automotive Council AC successes Roadmaps Opportunities – supported & collaborative How to engage and make a difference How to Make a Difference

£60 BILLION TURNOVER VITAL TO UK The Automotive Industry is a major contributor to innovation and growth in the UK £6 billion investment in last 2 years Ave UK car achieves 133g/km CO2 129,000 direct and 700,000 indirect jobs in UK Automotive £60 BILLION TURNOVER VITAL TO UK 2,700 UK automotive related businesses Automotive hits 7.3% of UK manufacturing output UK produces 1.6 million Vehicles & 2.5 million Engines UK productivity highest in Euope UK cars down 20% CO2 in 10 years The result of great Industry and Government effort in recent years However – much work still remains to deliver sustainable success

Strategic Government and Industry partnership reversed Automotive decline Background Job losses from closures in the early 2000s estimated at 95,000 Government policy promoted services Manufacturing viewed as “sunset” sector Catalyst for Change Improved Government & Industry relationship promotes long term strategy 2008 call for “market-driven industrial activism” leveraging government intervention Support existing strengths and sectors capable of sustained future growth Automotive is One of Eleven targeted Growth Sectors

Joint Industry/Government team consensed future Automotive vision Outputs High-level roadmap on low carbon technology Collaborative Academia/Industry R&D agenda UK Automotive Capability Study Recommendations Form an Office for Low Emission Vehicles Establish UK Automotive Council Transform business environment in the UK “Testbed UK” for large-scale technology trials Develop detailed technology roadmaps Develop a stronger supply base New Automotive Innovation and Growth Team (NAIGT) Report 2009 NAIGT comprised over 80 senior representatives of automotive companies, Government Departments, Public Sector Agencies, Trade Unions, Universities, Consultancies, … Establish a permanent joint Industry / Government Automotive Council to develop & implement strategic agenda 2009 NAIGT report framed recommendations to secure the future of UK Automotive Industry

The Automotive Council is the voice of our industry in the UK Aims Transformed business environment Compelling investment proposition Develop technology roadmaps Exploit UK opportunities Stronger supply chain Provide a public voice Automotive Council provides an ongoing advisory & consultative forum for Government and the Automotive Industry in the UK

The Automotive Council goal is to build long term world class ‘research to manufacture’ capability Applied Research Fundamental Research Development Manufacture Sustainable Business Re-investment € ¥ £ $ Strategic Investment Transform the business environment for the automotive industry in the UK, providing a compelling investment proposition

Success : Innovate UK Low Carbon Vehicle Innovation Platform (LCV IP) “Innovate UK’s LCV IP invests jointly with industry and other funders in interventions that promote UK-based R&D in low carbon vehicle technologies” Significant £206m million of Government investment to date, supporting a further £200m of private investment Targeted Investment aligned to Automotive Council’s five Strategic Technologies Coordinated Leveraging co-investment from partners such as OLEV, BIS, DfT and EPSRC Bringing together 288 unique partners from industry and academia Active 194 projects funded to date 15 interventions so far, including the Integrated Delivery Programme (IDP) 2 large scale LCV demonstrators run (600+ vehicles), including Europe’s largest ever LCV trial 2 new competitions launched in 2014 Industry must rise to the challenge of producing lower carbon transportation; this will require the development of new, innovative technologies to accelerate the industrialisation of low carbon propulsion systems for automotive applications The APC will facilitate the industrialisation of new supply chains in the UK The APC scope includes the high-value areas of advanced internal combustion engines, electric machines and power electronics, lightweight powertrain structures and energy storage and energy management. LCV IP has invested £206m of Government funding to date

Government funding of £131.5 million Success : Innovate UK Low Carbon Vehicle Integrated Delivery Programme (IDP) The IDP is just one element of Innovate UK’s Low Carbon Vehicles Innovation Platform (LCV IP) Integrated Innovation chain Technology creation & adoption Supply chain Delivery Growth of the UK automotive sector Faster introduction of vehicle-centric technologies Carbon reduction in domestic and international vehicle markets Programme Adaptive portfolio approach – “technologically agnostic” Seeding and pull through of technology Aligned R&D with industry , government, and research councils 129 Projects Government funding of £131.5 million 240 participants Industry must rise to the challenge of producing lower carbon transportation; this will require the development of new, innovative technologies to accelerate the industrialisation of low carbon propulsion systems for automotive applications The APC will facilitate the industrialisation of new supply chains in the UK The APC scope includes the high-value areas of advanced internal combustion engines, electric machines and power electronics, lightweight powertrain structures and energy storage and energy management. The IDP Platform channels BIS, DfT, OLEV and EPSRC support into the five strategic technology areas

Success : UK automotive strategy for growth and sustainability Invest in innovation and technology: £1 billion over 10 years in new Advanced Propulsion Centre (APC) Improve co-ordination / collaboration with academic research Enhance supply chain competitiveness and growth: £3m inward investment via Automotive Investment Organisation (AIO) Improve access to finance via Banking/Industry framework Invest in people – ensuring the right skills: UK Industry 5 year plan for 7,600 apprentices and 1,700 graduates Attracting more young people, especially women, into automotive Create competitive business environment for automotive: Enhancing the UK’s flexible labour market & support free trade Partnership between Auto Council, EU & local enterprise Continued early market support for ultra-low carbon vehicles Sets out the collaborative activity that will secure the next stage of automotive sector growth

Success : Advanced Propulsion Centre open for business APC Vision : To position the UK as a global centre of excellence for low carbon propulsion development and production. Invest £1bn in promising products, processes and people over the next 10 years. Encourage collaboration between SMEs, vehicle manufacturers and their suppliers. Enable advanced propulsion technologies to be ready for on and off road applications: turning technologies into products. Enable projects that drive investment in the UK. Embed expertise and know-how. Work with existing providers to deliver a complete propulsion development infrastructure Industry must rise to the challenge of producing lower carbon transportation; this will require the development of new, innovative technologies to accelerate the industrialisation of low carbon propulsion systems for automotive applications The APC will facilitate the industrialisation of new supply chains in the UK The APC scope includes the high-value areas of advanced internal combustion engines, electric machines and power electronics, lightweight powertrain structures and energy storage and energy management. The next generation of propulsion systems has yet to establish a supply chain, not just in the UK, but internationally  Opportunity The APC will facilitate the industrialisation of new supply chains in the UK

Success : Battery Material Scale-up Facility and R&D Pilot Line at WMG Research Performance Manufacture £13m investment (InnovateUK/Industry) in a battery chemistry scale-up R&D pilot line A facility to develop scale-up processes to take new chemistries from button cell size to power pack size £5m capital plus £4m research revenue from UK Government £4m research revenue from industrial collaborators Includes Imperial, Oxford & St Andrews Universities Industry must rise to the challenge of producing lower carbon transportation; this will require the development of new, innovative technologies to accelerate the industrialisation of low carbon propulsion systems for automotive applications The APC will facilitate the industrialisation of new supply chains in the UK The APC scope includes the high-value areas of advanced internal combustion engines, electric machines and power electronics, lightweight powertrain structures and energy storage and energy management. Enables manufacture and test of single cell, modules, battery packs through to complete powertrain.

Success : Technology roadmaps to guide Research and Development activities Cross industry teams Research challenges UK capability Automotive Council consensus Five strategic technology themes where the UK could show leadership through specialisation Technology Roadmaps published at LCV2013 guide focus of UK Automotive growth activity

Roadmaps : Living pathways to focus activity What is a Technology Roadmap Advisory not directive Relative priorities Relative UK strengths Consensed Not precluding new ‘fundamental research’ Currently preferred pathway, not the only pathway A living document How do I use it ? Priorities recognised as technology and business challenges  hence technology and business reward to those that overcome ! The Automotive Council Roadmaps sign-post the consensed industry technology priorities

Application Roadmap : Commercial & Off-Road Example There is more indepth information available on the AC website ·         The roadmap process has revealed agreed ‘challenges’

Technology Roadmap : ICE Example There is more indepth information available on the AC website ·         The roadmap process has revealed agreed ‘challenges’

Knowledge Transfer Network (KTN) The Automotive Council goal is to build long term world class ‘research to manufacture’ capability Applied Research Fundamental Research Development Manufacture Sustainable Business Re-investment ¥ Battery Centre € $ £ £Xm Xyrs £500m 10yrs £3m 2yrs £206m Strategic Investment EPSRC Innovate UK APC AIO+RGF+AMSCI Knowledge Transfer Network (KTN) R&D Tax Credit Roadmaps for UK ‘Sticky Technologies’ focus ‘research to manufacture’ activity Strategic investments and interventions guided by roadmaps, are accelerating critical technology development and growth

Our roadmaps fall into a natural structure linking Industrial Strategy to our Technical Challenges WHY are challenges and future technologies important ? HOW will future growth and applications be supported ? Technology Challenge Areas ICE Light-weighting Electrical Machines Energy Storage Intelligent Mobility

UK Automotive R&D Technology Challenges Advanced Internal Combustion Engines Downsizing and downspeeding Boost systems Flexible valve trains Electrification Integration of ICE and e-machines Advanced Pm and NOx emissions control High efficiency combustion systems Advanced regenerative cycles (target ɳ>60%) Thermal energy recovery Lightweight structures Reduced friction Electric Machines & Power Electronics Lower cost of manufacture/high efficiency e-machines Recycling at high volume Reduce material cost Alternatives to rare earth magnets CAE optimisation of electromagnetic, thermal, mechanical, NVH and control Higher power density and lower cost/kW Integrated power electronics package Energy Storage and Energy Management Low cost battery chemistries ‘Scale up’ technologies Battery system design for efficient Thermal mgmt Packaging Safety Cost effective alternate energy storage Battery and energy management systems Lightweight Vehicle & Powertrain Structures Lightweight structures and interiors with low cost of manufacture Light weight powertrain including transmission; driveline; and chassis integration Low rolling resistance tyres and brakes System integration for lower system weight Intelligent Transport Systems Connected and autonomous vehicles, systems & subsystems Sensors Actuators Software control Object recognition Decision algorithms Safety systems Human-Machine interface & ITS/human behaviour inter-action V2V/V2X technologies Traveller information systems Freight logistics Business case demonstration The industry seeks your involvement in solving these challenges

Opportunity for supported and collaborative innovation for UK automotive success If you innovate in a ‘roadmap’ area, you’re delivering to an agreed industry need Increasing the chance of getting support, getting to market & getting rewarded Collaborative innovation Have a shared goal Helps realize others’ visions Motivate your own team Share new ideas Build on others’ ideas Buy-in Engagement translates to success There is a real and current opportunity for supported and collaborative innovation which will help bring UK automotive industry success. But what is in it for you, the audience? We have seen the road maps, and its important to remind ourselves that these have been created by industry consensus. Whether you agree with them or not, this is what the industry believes is happening, and needs to happen, and this is where the collaborative innovation needs to take place, If you choose to innovate in this area, you will deliver to an industry consensus need and therefore the chance of getting support is increased. The support will help you get to market, and ultimately get the reward you are targeting. The key to success is collaborative innovation, and its worth looking at the key points of this. Its important that the goal is shared amongst the collaborators, and that the activity will help one another realize their own vision. If these are achieved then the collaboration can be very motivational to your own employees and staff, and there are four key benefits: New ideas shared. When Teams work together pooling intellectual revenue, more ideas will naturally be forthcoming. In the early stages of collaboration, many ideas are generated. The challenge is to determine which ideas are the good ideas and to put resources in place to drive the marketable ideas into reality. Building on the ideas of others. With creative brain power from multiple individuals, new directions on the ideas can be improved upon. People with different expertise, diversity and backgrounds can elaborate in a different ways, adding their take on how the idea can be developed and why. It is important that everyone shares openly, not withholding valuable information that might lead to breakthrough. Buy in. When people invest a part of themselves into an innovation, their interest is peaked and they will strive to have their work a success. They take ownership, pride and active interest in boding its success. It is vital in collaborative innovation that the whole team is recognized for the innovation, not just the person who had the original idea, otherwise, people will lose motivation to be a part of the team. Engagement translates into success. Even collaborative innovations that are not ultimately successful in the market will translate into raised engagement within the workplace. Engagement translates to greater loyalty, quality and when collaborative innovation’s products achieve the desired outcome, the result is profitability. The benefits to you and your organisation are that you can find better or alternative ways of fulfilling existing functions, and new ways to solve problems. There will be a positive impact to your bottom line, either directly or indirectly. Enables you to find a better or alternate way to fulfil existing functions and to find a new way to solve a problem Positive direct and indirect impact on your bottom line whatever your motivation

How to engage in supported and collaborative innovation for UK automotive success Stay knowledgeable about what your industry needs from you … Stay in touch with Automotive Council activities ( www.automotivecouncil.co.uk Understand, support and shape the roadmaps The funding competitions are aligned to the roadmaps across all TRLs  Collaborate! Other organisations and communities  Join and engage within the industry. Technology Workstreams  Get involved Industry Events  Attend and grow your network Some important contacts: Research  EPSRC ( www.epsrc.ac.uk ) Demonstration  Innovate UK (www.innovateuk.org.uk) Innovation  Catapult ( www.catapult.org.uk ) Industrialisation  APC ( www.apcuk.co.uk ) Networking  KTN ( www.ktn-uk.co.uk ) Investment  UKTI / AIO How can you engage in collaborative innovation to bring UK automotive success? The first step is to understand what your industry needs from you by reading and understanding the roadmaps in the field or area you are operating in. All of the collaborative funding competitions are aligned to the roadmaps. There is a lot of supporting material on the Automotive Council website; of particular importance to give a good background is the Industrial Strategy. The funding activities are aligned across all of the technology readiness levels, encouraging collaboration. There are many other organisations and communities who are wanting to join and engage with you, and many events such as the Low Carbon Vehicle Show where you can meet fellow industry colleagues. There are 5 automotive council technology group workstreams, all of which will encourage your participation: There are some important contacts for research through to networking and investment, all ready and willing to help you. Engaging will help your organisation to bring UK automotive success. Engaging will help your organisation contribute to bringing UK automotive success

Knowledge Transfer Network (KTN) The Automotive Council goal is to build long term world class ‘research to manufacture’ capability Applied Research Fundamental Research Development Manufacture Sustainable Business Re-investment ¥ Battery Centre € $ £ £Xm Xyrs £500m 10yrs £3m 2yrs £206m EPSRC Innovate UK APC AIO+RGF+AMSCI Knowledge Transfer Network (KTN) R&D Tax Credit Opportunity to engage and contribute at every step to benefit from relevant funding, networking, influence, impact, knowledge, process and skills benefits Collaborative R&D funding competitions supporting roadmap technologies are central to growth strategy Reaching out to others is an essential step to success

Innovation for UK Automotive Success Industry is coming together in a new way to collaborate to bring new technologies to market in innovative products The Automotive Council has worked to build an improved business framework in the UK, guided by technology roadmaps Represents industry consensus following consultation with leading experts in both business and technology - it's real and important ! Support mechanisms and collaboration opportunities are in place Contact … Automotive Council, InnovateUK, KTN, EPSRC to engage and benefit from the growth of our industry Please join in and Make a Difference Opportunity to research, develop and deploy the critical Automotive Technologies that the industry needs… Through an accelerated, collaborative and co-funded process… In the UK . . . . . . . automotivecouncil.co.uk