Car parts makers in Britain have an opportunity to be in the forefront of the new generation of automobiles while securing production of the present generation of vehicles, says leading automotive economist Garel Rhys.
As vehicle makers prepare for the introduction of electric cars in Europe, with Nissan building its Leaf line at the Sunderland plant, the hoped-for announcement of Ampera car production at Vauxhall’s Ellesmere Port plant and EV plans by other car makers in Europe, he says UK companies have a golden opportunity to supply these factories with future generation hardware and software.
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At the same time, with the global automotive industry in turmoil following the cut-off in component supplies from earthquake-hit Japanese parts makers and transport costs dramatically escalating, Rhys believes it is time to strike deals with offshore parts makers.
“The enormous hike in transportation costs about 12 months ago sent shock waves through the components industry around the world and made them realise that being part of a global business also opened them up to huge costs as well as savings.
“I think we must go and talk to the component suppliers in Japan, China and India to see how we could work together, set up local manufacturing sites to supply customers in Europe, the UK and America to overcome these transportation costs and interruptions in supply such as we have seen in Japan over the last few weeks.”
Rhys is chairman of the Welsh Automotive Forum and chief executive Tim Williams also believes now is the time for component makers to renew contacts with car makers and Tier 1 suppliers, saying, “With the real likelihood that the components industry in the far east will find it difficult to satisfy demand for a considerable time and with production lines being affected as a result, it is important that component makers in Britain make themselves more visible in the market place.
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By GlobalData“The recent report from Auto Analysis – The UK Automotive Industry, Invest Now – by Ian Henry in March 2011, certainly confirms the opportunities.”
The WAF is currently surveying its members to precisely ascertain the impact and opportunities surrounding the cut-off in parts supplies from the far east to UK and European vehicle assembly plants.
