Automotive Industrial strategy: securing investment and creating jobs
19 Jun 2014 01:04 PM
Automotive Investment
Organisation a new government funded body to attract inward investment to the
UK smashes its targets in its first year.
The Business Minister Michael
Fallon has announced that a new government funded body to attract inward
investment to the UK has smashed its targets in its first
year.
The Automotive Investment
Organisation (AIO) was created to spearhead inward investment in to the UK. It
has achieved the following:
- £457 million worth of
investment
- 80 projects funded –
beating the target of 60 projects
- more than 5,600 supply chain
jobs secured - beating the target of 4,000 jobs
Speaking ahead of the
Manufacturing Summit on 19 June 2014, which brings together government and
industry to discuss the challenges and next steps for the sector, Business
Minister Michael Fallon said:
Manufacturing is driving the
UK’s recovery and our vibrant automotive sector is leading the way in
helping to create jobs and generate growth.
The Automotive Investment
Organisation can take some of the credit. It has got off to a cracking start
– beating its initial targets by securing over £450 million of
investment and creating and safeguarding more than 5,600 jobs in its first
year.
The AIO, part of UK Trade
and Investment, was originally funded with an investment of £3 million
over 2 years. It was created following a 2012 report by the Automotive Council,
which found there was an additional £3 billion of new business that could
be won by UK suppliers and overseas companies looking to set up or expand
manufacturing facilities in the UK.
Recent examples
of AIO project successes have included Canadian car manufacturer,
Multimatic, announcing a new £59 million investment project which will
see the creation of 232 jobs in the UK.
Part of Multimatic’s
investment proposal will be a new research and development facility in Norfolk
and a manufacturing plant in Coventry focused on the production of advanced
composite components to support the development of lightweight
vehicles.
The AIO has also
helped BorgWarner establish a Turbocharger Centre of Excellence and launch a
research and development collaboration programme with the University of
Huddersfield. BorgWarner has been able to secure a supply contract
for JLR as a result of this investment. Both projects have resulted
in more than 200 new jobs – with a combined investment of £26
million.
CEO of the Automotive
Investment Organisation and former Chair of Ford, Joe Greenwell
said:
The UK automotive sector is
thriving and ‘brand Britain’ vehicles are recognised around the
world as a mark of premium quality, reliability and
innovation.
These first year results for
the AIO are testament to the high regard in which the UK industry is
held internationally, and I’m pleased we’ve been able to surpass
our targets, securing thousands of UK jobs and hundreds of thousands of pounds
of investment into the UK. I look forward to building on this in the weeks,
months and years ahead as we continue to buck the trend across the rest of
Europe by growing our car production.
The 2014 Manufacturing Summit,
which is being held in Liverpool, aims to bring together more than 200
manufacturing business leaders to discuss with ministers the latest progress on
the Industrial Strategy,
upcoming challenges and next steps for the sector as government continues to
put manufacturing at the heart of its growth programme.
Notes to
editors:
- The AIO is currently
focused on driving investment from the US, Germany, Japan and China and
recently visited China, meeting 16 target companies, and raising the profile of
UK opportunities at the Beijing Automotive show.
- In 2013 UK-based plants produced
more than 1.6 million vehicles (1.5 million cars) and 2.5 million engines - an
increase of 3% on 2012. This bucked the declining trend in other European
countries.
- The UK is the 3rd biggest car
manufacturer in Europe with a car rolling off the production line every 20
seconds.
- The automotive sector is 1 of 11
key areas where the government is working collaboratively with industry on a
long-term plan to deliver economic growth and prosperity.
- UK Trade and Investment (UKTI)
is the government department that helps UK-based companies succeed in the
global economy. We also help overseas companies bring their high quality
investment to the UK’s economy – acknowledged as Europe’s
best place from which to succeed in global business. UKTI offers
expertise and contacts through its extensive network of specialists in the UK,
and in British embassies and other diplomatic offices around the world. We
provide companies with the tools they require to be competitive on the world
stage. For more information onUKTI, visit www.gov.uk/ukti.
- The AIO and The
Society of Motor Manufacturers and Traders (SMMT) will jointly host a Meet The
Buyer event in London on 25 June 2014 to support the sourcing activities of
both UK and non UK based purchasing organisations. The event aims to match
buyers to suitable suppliers based in the UK and abroad. 300 companies are
expected attend the event.
- The government’s long-term
plan is to build a strong, more competitive economy and a fairer society.
Industrial
Strategy gives impetus to the plan for growth by providing businesses,
investors and the public with clarity about the long-term direction in which
the government wants the economy to travel.
The first achievements and future priorities of the industrial strategy
have been published and can be found herehttps://www.gov.uk/government/publications/industrial-strategy-early-succ
esses-and-future-priorities.