Only A Third Of Parts Sourced In UK
A “British-built” car typically contains only one third of locally sourced parts with the remainder bought from foreign markets, a new report claims.
The Automotive Council – that published the report – says this figure could be increased to 60% which represents a “£2 billion opportunity” for component suppliers. It would also bring the United Kingdom in line with countries such as France, Germany, Italy and Spain.
The Automotive Council wants local suppliers to take a larger slice of the market. Encouragement will come via a “Meet the Buyer” Event on May 12th 2015 that will bring together motor manufacturers that want to buy parts, with UK suppliers. It will be hosted by the Society of Motor Manufactures & Traders and UK Trade and Investment.
The report has been published at a period when “UK car makers enjoy an unprecedented period of success”, it says. Furthermore, the report emphasises that a recent survey shows that 80% of part suppliers expect their business to “grow in the near term”.
UK motor manufacturers – that purchase a higher percentage of components locally - could benefit from lower logistical costs, greater flexibility and faster response times.
The Government might also benefit from increased tax revenue.
Business Minister Discusses UK Parts Supply
Business Minister Matthew Hancock said, “The automotive sector is thriving and our supply chain firms are helping to create jobs and generate growth - but there is more to be done.”
“That is why last month we announced £10 million of government money to address skills shortages in the auto supply chain to help UK companies win more contracts.” Motor Manufacturer Representative Discusses UK Parts Supply
Dave Allen, Purchasing Director for Jaguar Land Rover and Chair of the Automotive Council Supply Chain Group, added: “The current success of the UK automotive sector presents a renewed opportunity for automotive suppliers to invest in the UK, and to increase local sourcing of the high value components that the UK’s world-class vehicle makers require.”