UK funding of GBP3m (US$5.1m) into the Automotive Investment Organisation (AIO), will accelerate progress to increasing the size of the British supply chain, says its chief executive.
AIO head, Joe Greenwell, made his comments at yesterday’s (25 June) ‘Meet the Buyer’ event organised by the Society of Motor Manufacturers & Traders (SMMT) and as the UK recorded its 27th consecutive month of new registration growth.
Go deeper with GlobalData
“This is a GBP3m budget over three years,” Greenwell told just-auto on the sidelines of the Meet the Buyer event in London’s rejuvenated docklands area. “It is a substantial investment to accelerate our progress.
“Regional Growth Fund (RGF), Advanced Manufacturing Supply Chain Initiative (AMSCI), it is clear from elements supporting automotive and other core sectors, the government is giving us as much support as it can.
“They are backing up the support in terms of the institutions with hard cash.”
The AIO forms part of the Automotive Council’s industrial strategy element and is pro-actively looking to attract supply chain foreign direct investment, having recently revealed it had secured GBP457m of business for UK companies.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Our primary responsibility is to stimulate supply chain growth, recognising we have quite a lot of success with OEM investment,” said Greenwell. “The difference between local content in the UK and Germany is quite significant and our task is to try and narrow that gap.
“The AIO has not made an assumption because OEMS are investing heavily, the supply chain, which has been hollowed out over a 35-year period, would necessarily follow.
“The supply chain sub-council of the Automotive Council is focussed on that challenge. We need to be more pro-active in our approach. There is some joined-up policy…to significantly increase foreign direct investment in the automotive supply chain.”
Greenwell – former Ford of Britain chairman and Jaguar Cars CEO – also highlighted the UK’s strong skills set which he says is beginning to attract overseas interest.
The AIO says it has obtained funding for 80 projects and secured 5,600 supply chain jobs, with the challenge now to increase domestic component availability, which could generate a further GBP3bn per year to UK businesses.
“There are OEMS in the UK saying we want to localise commodities,” said Greenwell.
“It is not wishful thinking – it is business taking place daily.”
