1. _________________________________________________________________ 28/03/12 Tim Williams Chief Executive ‘Challenges and Opportunities in the Automotive Supply Chain’

2. _________________________________________________________________ 28/03/12 AGENDA SOME AUTOMOTIVE INDUSTRY FACTS AND FIGURES SUPPLY CHAIN STRUCTURE UK AUTOMOTIVE CHALLENGES TECHNOLOGY AND SUPPLY CHAIN ROADMAPS THE GREEN AGENDA ACTIONS / RECOMMENDATIONS vm TIER 1 TIER 2+3

3. _________________________________________________________________ 28/03/12

4. _________________________________________________________________ 28/03/12

5. _________________________________________________________________ 28/03/12

6. _________________________________________________________________ 28/03/12 The Automotive Industry In Wales 2 Engine Plants – Ford & Toyota 1 System Integrator – Calsonic Kansei > 38 International Component Plants > 100 Related SME’s 8 Universities 18,000 employed > £3Bn turnover

7. _________________________________________________________________ 28/03/12

8. _________________________________________________________________ 28/03/12 SUPPLY CHAIN STRUCTURE VEHICLE ASSEMBLY PLANT TIER 1 – MAJOR ASSEMBLIES TIER 2 + 3 SUB COMPONENTS GLOBAL V LOCAL WALES IS A COMPONENT MANUFACTURER PRINCIPALLY AT TIER 1 LEVEL WITH SUPPLY CHAIN DECISION MAKING OUTSIDE OF WALES! SUPPORTED IN THE MAIN BY SERVICE COMPANIES AND NOT TIER 2OR 3 IT IS RECOGNISED THAT THERE ARE A COUPLE OF NICHE VEHICLE MANUFACTURERS AND REFUSE COLLECTION VEHICLE MANUFACTURERS AND ALSO MOTORSPORT VEHICLE MANUFACTURERS IN WALES.

9. _________________________________________________________________ 28/03/12 CLUSTERS + VALUE NETWORKS WE SHOULD LOOK AT CREATING MORE CLUSTERS –POWERTRAIN –DOOR SYSTEMS –INTERIORS –SERVICE VALUE NETWORKS –NEW TECHNOLOGIES PRODUCTIV LTD –WALES: PRECISION ROTARY PRODUCTS »MOTORS, ELECTRIC TURBOCHARGE RS, FLYWHEELS

10. _________________________________________________________________ 28/03/12 UK Auto Challenges Macro Economic Environment –Western markets flat with pull from new markets – BRICS Globalisation / Rationalisation / Localisation –Regional advantage as lever for global competitiveness – (£v€) Supply Chain and Low Carbon Footprint Pressure on Business Performance –Quality, Cost and Delivery, Innovation – Legislation – Funding - Skills Climate Change - Impact –CO ₂ Reduction Targets (UK -80% by 2050) Challenges of Technology –Vehicle Roadmap – (Automotive Council) –Shortage of skills & capacity to deliver new technology solutions is driving new approaches Access to Funds –Finding finance at the right price

11. _________________________________________________________________ 28/03/12 Technology Roadmap

12. _________________________________________________________________ 28/03/12

13. _________________________________________________________________ 28/03/12 Driving Towards a Greener Wales The Climate Change Agenda OPPORTUNITIES (INCLUDING PUBLIC PROCUREMENT)

14. _________________________________________________________________ 28/03/12 Wales Green Automotive Agenda CHALLENGES AND OPPORTUNITIES ENERGY TRANSPORT INFRASTRUCTURE INDUSTRY WIND – WAVE - BIO MAS REFUSE VEHICLES BUSES

15. _________________________________________________________________ 28/03/12 ACTIONS / RECOMMENDATIONS CONTINUE THE DIALOGUE WITH UK VEHICLE MANUFACTURERS AND TECHNOLOGY DEVELOPERS RE-DEVELOP THE LOW CARBON VEHICLE CLUSTER CREATE A LOW CARBON VEHICLE / TECHNOLOGY PARK (Ebbw Vale – Enterprise Zone) VITAL THAT WE CONTINUE TO DEVELOP A STRONG SKILLS BASE - WALES’S USP? WORK WITH WELSH GOVERNMENT FOR FDI AND EXPORTS ASSIST WITH THE DEVELOPMENT OF THE ‘HYDROGEN HIGHWAY’ - Low Carbon Economic Area WORK WITH LOCAL AUTHORITIES ON VEHICLE PROCUREMENT IMPROVE THE MARKETING OF WALES COMPETENCIES

16. _________________________________________________________________ 28/03/12 OUR FUTURE

17. _________________________________________________________________ 28/03/12 WWW.WELSHAUTOMOTIVEFORUM.CO.UK