Business Minister Shriti
Vadera announces new investigation into automotive industry
DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/074)
issued by The Government News Network on 7 April 2008
Business Minister
Shriti Vadera today launched a new investigation into the
UK's automotive industry to identify measures to tackle the
twin challenges of low cost competition and the move to
lower-carbon transport.
The work will bring together industry experts and will be led by
former Ford vice president Richard Parry-Jones.
Shriti Vadera said: "The UK's car industry is one of
the most successful in the world, with a number of manufacturers
currently enjoying record levels of production at their UK plants.
"But the industry, like many others, is facing a number of
challenges as it moves into the next decade, particularly in terms
of reducing emissions and tackling a continued rise in competition
from low-cost countries such as China, India and Eastern Europe.
"We need to ensure our car industry can build on its
existing strengths and remain competitive in an increasingly
globalised world."
Mr Parry-Jones said: "New challenges, such as sustainable
mobility solutions, and the emergence of strong auto markets and
sectors in the East, provide powerful stimuli for change. I am
looking forward to working with colleagues to define the
challenges and suggest ways to enhance our ability to meet them
through collaboration."
The investigation will also look at a new Departmental survey on
the business environment for Japanese automotive supply companies
in the UK, aimed at improving the UK's supply chain
capabilities, including in areas such as management skills and the
pace of new product delivery.
Shriti Vadera added: "A strong local supply chain is
essential if we are to retain and increase vehicle
manufacturers' investment in the UK.
"That is why we are already setting up a service to help
match UK suppliers with car manufacturers, as well as establishing
a new industry-led programme to help ensure supply chain managers
have the right skills for the job."
Terms of Reference
* identify key performance indicators and success factors in
support of the NAIGT
* investigate the barriers and challenges posed by existing EU
and national legislation to ensure the UK has the right regulatory
framework to encourage the competitiveness of a world class
industry to continue to develop in the UK
* assess the evidence of the strengths, weaknesses and
opportunities for each of the different sectors that make up the
automotive industry together with identification of market trends
(gaps and hotspots) using an evidence based approach
* review the impact of the previous AIGT and its legacy
programmes and government interventions in support of the sector
* take account of the evidence and the implications of the King
Review on low carbon cars; and the departmental report on the
Business Environment for Japanese Automotive Supply Companies in
the United Kingdom (April 2008)
* produce a report that makes recommendations to government that
are capable of being taken into account in policy making, and to
produce an action plan for industry.
Notes to Editors
1. Membership of the NAIGT is to be drawn from senior figures in
the automotive industry, including vehicle manufacturing, supply
industry and academia. Full details of the NAIGT membership will
be announced shortly.
2. Richard Parry-Jones CBE was, until December 2007, the Group
Vice President and Chief Technical Officer, Ford Motor Company.
Richard is an elected member of the Royal Academy of Engineers and
the Institution of Mechanical Engineers. Richard was awarded a CBE
in The Queens New Year Honours List 2005 for services to the
automobile industry.
3. The original AIGT 2002 Report
(http://www.berr.gov.uk/sectors/automotive/publications/page45523.html)
was published by the Automotive Innovation and Growth Team in May
2002. The AIGT was chaired by Sir Ian Gibson CBE. This review gave
rise to initiatives such as the National Supply Chain Groups
Programme; the Low Carbon Vehicle Partnership; the Automotive
Academy (now part of the National Skills Academy for
Manufacturing); two centres of excellence - Cenex for Low Carbon
and Fuel Cells Technologies and innovITS for Intelligent Transport
System and Services.
4. Copies of the Report on the Business Environment for Japanese
Automotive Supply Companies in the UK are available from http://www.berr.gov.uk/files/file45472.pdf
or http://www.berr.gov.uk/sectors/automotive/index.html
5. The report was prepared by Toshi Sakamoto, a senior Director
from Ministry of Economy, Trade and Industry (METI), Japan, who
worked alongside the Automotive Unit in BERR who sponsored the
project. The project was initiated in response to discussions
between Ministers and representatives from the Japanese automotive
industry in 2006. The report focuses on and analyses the findings
of a survey of 41 Japanese auto-parts manufacturers and the three
Japanese Vehicle Manufacturers with operations in the United Kingdom.
6. The Department for Business Enterprise and Regulatory Reform
helps UK business succeed in an increasingly competitive world. It
promotes business growth and a strong enterprise economy, leads
the better regulation agenda and champions free and fair markets.
It is the shareholder in a number of Government-owned assets and
it works to secure, clean and competitively priced energy supplies