0000000000000MANIFESTO2030:AUTOMOTIVEGROWTHFORAZEROEMISSIONFUTUREJune2023Supportedby:2THESOCIETYOFMOTORMANUFACTURERSANDTRADERSUKAutomotiveplaysacriticalroleintheeconomyandsociety–keepingBritainonthemove.Weareamajorcontributortothenation’seconomicwellbeing,investinginanddevelopingtechnologiestoadvancezeroemissionmobility,andprovidingwell-paidskilledjobsinbusinessesandtheirsupply-chainsinallregionsacrosstheUK.Society,communitiesandindividualswouldbeleftintheslowlanewithoutthebenefitsautomotivebringstodayandwillcontinuetobringinthefuture.Butweareatacriticalmoment.Automotivemustcarrythegreatestburdenofthedecarbonisationoftransport.Weneedtomeetacceleratedgovernmentmandatedzeroemissionvehicletargetsfrom2024andendofsaledatesforspecifictechnologiesin2030and2035.Wemustdothiswhiletakingconsumers(andvoters)onthisjourney–deliveringaffordable,sustainablemobilitysolutionsandcreatinghighpaid,rewardingjobsandeconomicvaluefortheUK.Whicheverpartyformsthenextgovernment,thenextparliamentwillbecriticaltoachievingtheUK’snetzerotargetsandthelong-termfutureoftheUK’sautomotivesectorinthetransitiontozeroemissionvehicles.AllpartiesandallstakeholdersmustmakebindingcommitmentstoensuretheUKcontinuestothriveandprosperinafuturedrivenbygreenindustryandcleantechnologies.Automotiveisattheheartofthis.ThenextgovernmentmustrecognisethestrategicimportanceofautomotivetotheUKeconomy,maintainitsdiversityandstrongheritage,anditsstrengthsasagloballeaderinadvancedmanufacturingandtechnology.Allpartiesshouldcommittofivekeypledges:01AGreenAutomotiveTransformationStrategyforastrongereconomy02NetZeromobilityforeveryone03Greenskillsforagreenerfuture04MadeinBritain–Madefortheworld05PoweringtheUKcleantechrevolutionFinally,wecallonallpartiestoenshrineourshared2030vision:TodevelopaUKautomotiveecosystemfittodeliverazeroemissionfuture.Anecosystemwhichdeliversahealthymarketandvibrantdomesticproductionfootprint,foundedonaresilientsupplychainsuccessfullyevolvedtomeetcurrentandfuturetechnologicalneedsforazeroemissionfuture.Anecosystemwhichdeliverstheaffordability,mobilityandchargingsolutionsforeveryone.Onlytogethercanweachievesuccess.CONTENTS:02Introduction03UKAutomotive:Aproductionpowerhousewithaglobalreputation04SummaryPledgeCardAcriticaldecadeforUKautomotivetransformation:05AGreenAutomotiveTransformationStrategyforastrongereconomy07NetZeromobilityforeveryone08Greenskillsforagreenerfuture11MadeinBritain/Madefortheworld13PoweringtheUKcleantechrevolutionCaseStudies:15JLR16ToyotaMotorManufacturing(UK)17HydrogenVehicleSystems(HVS)18Halfords19LKQEuroCarPartsINTRODUCTIONACRITICALDECADEFORUKAUTOMOTIVETRANSFORMATION,ANOPPORTUNITYFORTHENEXTGOVERNMENTMikeHawes,ChiefExecutiveTheSocietyofMotorManufacturersandTraders(SMMT)3THESOCIETYOFMOTORMANUFACTURERSANDTRADERSUKAUTOMOTIVE:APRODUCTIONPOWERHOUSEWITHAGLOBALREPUTATIONDrivingtheeconomyandprovidingmobilitysolutionsforall–frompassengertocommercialvehicles–withahugeopportunityfordeliveringgrowthandprosperityinthenetzeroeconomy.UKAUTOMOTIVErisefrom74,000toover750,000electricvehiclecarandvanproductionIfsuccessful,by2030UKAutomotivecouldbesetfor:THEPRIZE10Xbetweennowand2030worth£106BILLIONwithfurthergrowthopportunitiesinsupplychain,aftermarketandheavydutyvehicles70+vehiclemodelsbuiltinBritainby25+manufacturingbrandsBatteryelectricvehicles,hybrid,hydrogen,andfuelcelltechnologies.UKmanufacturingisdiverseincluding:Car,van,taxi,bus,coach,trucks&HGVElectrifiedvehiclescomprisemorethanathirdofallcarproductionFinishedvehiclesareamongBritain’smostvaluableexports,deliveringrevenueof£24billion,£10billionofwhichwasforelectrifiedvehicles80%ofthevehiclesproducedintheUKareexported,morethanhalftotheEUVEHICLEOUTPUTANDEXPORTS£24billion80%13EverypartoftheUKisinvolvedinelectricvehicleorcomponentmanufacturingEVsupplychaingrowingbymorethan25%inthepastfiveyearsTheUKautomotivemanufacturingsupplychaincurrentlyemploys134,000peopleMorethan2,500automotive-specificcompaniesTotalturnoverof£29billionforsupplychainTotalturnoverforaftermarketSUPPLYCHAINANDAFTERMARKET£29billion25%Foreveryjobinoursector,another2.2jobsaresupportedinadjacentsectorswhobenefitfromastrongUKautomotiveindustry208,000peopleemployeddirectlyinautomotiverelatedmanufacturing800,000acrossthewiderautomotiveindustryAutomotivemanufacturingwagesthatare14%higherthantheUKaverage.JOBSANDSOCIETY14%2.2£16billioninGVAtotheUKeconomy,wearehometoeverythingfromOEMsandsupplychaintopotentialunicornsandhighvaluestart-upsWearetheUK’slargestsourceofexportsformanufacturedgoodsMorethan180companiesalreadyinvolvedinproducingcomponentsforelectricvehiclesUKhasEurope’ssecondlargestcarandvanmarkets–ahealthydomesticmarketisseenaskeydriverofinwardinvestmentECONOMICIMPACT£34billion£51billionFIVEAUTOMOTIVEPLEDGESFORTHENEXTGOVERNMENTAGREENAUTOMOTIVETRANSFORMATIONSTRATEGYFORASTRONGERECONOMYPOLICYACTIONPublishaGreenAutomotiveTransformationStrategythatsuperchargesUKAutomotivetoachieveNetZero.Astrategywhichenablesinnovation,attractsinvestmentandsecuresmanufacturingofcleantechnologiesintheUKtodelivereconomicgrowthandzeroemissionmobility.POLICYACTIONOffertheskillsworkerswantbycreatingaone-stop-shopnationalupskillingplatform,anddevelopthefuturetalentbusinessneeds,combinedwithgreaterSTEMeducationinschoolsandadynamicimmigrationsystemthatattractsglobaltalent.POLICYACTIONFosterareliableandaffordableUK-widerechargingandrefuellingnetworkthroughbindingtargetscomplementedbyamotortaxandregulatorysystemthatensuresnooneisleftbehindinthetransitiontoNetZero.POLICYACTIONPositionautomotiveandadvancedmanufacturingsupplychainsatthecoreofUKtradepolicyandmarketaccess.Secureaccesstoglobalmarketsfortariff-freeexportofBritish-madevehicles,batteriesandgreentechnologies,anddeliverexportsupportservicesthatallowbusinessesofallsizestosucceed.POLICYACTIONEnsureNetZero-criticalindustriessuchasautomotiveareabletoaccessaffordableandinternationallycost-competitivezeroemissionenergytopowerthecleantechrevolution.Dedicatedenergyandinvestmentmeasuresshouldbeavailabletomakezeroemissionvehicleproductionanduseareality.PLEDGE1GREENSKILLSFORAGREENERFUTUREPLEDGE3NETZEROMOBILITYFOREVERYONEPLEDGE2MADEINBRITAIN–MADEFORTHEWORLDPLEDGE4POWERINGTHEUKCLEANTECHREVOLUTIONPLEDGE500000000000004THESOCIETYOFMOTORMANUFACTURERSANDTRADERS5THESOCIETYOFMOTORMANUFACTURERSANDTRADERSRECOMMENDATIONS→Anall-party,cross-WhitehalltransformationstrategythatinspiresconfidenceintheUK,superchargesUKcompetitivenessanddeliversonour2030vision→Astrategywhich:–isholisticandcomprehensive,coveringvolumeandspecialistvehicleengineeringandmanufacturingtosupplychainsandcriticalinputmaterials–de-risksprivatecapitalinvestmentandreflectstheevolvinginternationallandscapetodeliveralevelplayingfieldonwhichtocompetewithkeymarketsandtradingpartners–maintainsourworldclassinnovationecosystem–fromacademiaandinstitutions–andcriticalprogrammesfromtheAutomotiveTransformationFundtoR&Dtaxcredit,scale-upandcommercialisationregimes–isdynamic,responsiveandestablishesbestpractice–utilisesalltheUK’savailablepolicy,fiscalandregulatorylevers–isdevelopedandchampionedinpartnershipbygovernmentandindustryPLEDGE1:AGREENAUTOMOTIVETRANSFORMATIONSTRATEGYFORASTRONGERECONOMYPOLICYACTIONPublishaGreenAutomotiveTransformationStrategythatsuperchargesUKAutomotivetoachieveNetZero.Astrategywhichenablesinnovation,attractsinvestmentandsecuresmanufacturingofcleantechnologiesintheUKtodelivereconomicgrowthandzeroemissionmobility.TRANSFORMATION:PLEDGE16THESOCIETYOFMOTORMANUFACTURERSANDTRADERSKEYDATABACKGROUNDAdiverseeconomyisastrongeconomy.AdvancedmanufacturingisafundamentalcomponentandmajorcontributortotheUKeconomywithautomotiveadding£16billionGVAlastyear,andvitaltoachievingNetZeroby2050.TheUKautomotivesectoroperatesinahighlycompetitive,globalenvironmentandhasbeenhugelysuccessful,historicallyattractingsignificantinwardinvestment.Thatpositionisnowunderthreat.Fromtechnologicaltransformationtochangingtraderules,fromclimateambitionstozeroemissionmobility,weneedaclear,unambiguousindustrialstrategydedicatedtoautomotiveandadvancedmanufacturing.Governmentsincompetitormarketsareofferingsizeablesubsidiesandstreamlininginvestmentopportunitiesandbureaucracytoenticemobilecapitalfromwithintheglobalindustry.Tocompete,wemustbedynamic,harnessingacross-departmentalstrategythatde-risksprivatecapital,acceleratespermissionsandseizesopportunities,thatregulateswithbothbusinessandconsumerneedsatpaceandwithpurpose.TheUKneedstooutlineagenerousmedium-termincentiveandsubsidyprogrammeandco-investmentvehicles(similartosovereignfunds)thatiseasilyaccessibletobusinessanddeployedatpace.Thisshouldincludegrantsandtaxbreakstoencouragethelocalisationandscalingof,inparticular,abatteryvaluechainandpromoteacirculareconomy.Fundingshouldbeprioritisedforhigh-valueorstrategicactivitiessuchasmineralsprocessing,cellmanufacturing,batteryreuseandremanufacturing,materialsrecoveryandrecycling,electricdriveunitmanufacturingandfuelcellproductiontopositiontheUKthroughtheremainderofthedecadeforabright,zeroemissionfuture.TheUKcanactasaregulatoryleaderandinnovatorintheageofzeroemissionvehicles.Certaintyanddirectionoftravelarehugelyinvaluableinhighlyregulatedsectorssuchasautomotive.RegulatoryroadmapsdevelopedacrosskeygovernmentdepartmentsfromTransport,toBusiness&Trade,andEnvironmenttoguidethefutureofholisticUKautomotiveregulationwouldhelptocreateaframeworkthatboostsbusinessconfidenceandresilienceinoursector.Simplifyingredtapeorfasttrackingappropriateapprovalprocessesforcapitalprojects–suchasbatteryproductionormaterialsrefiningfacilities,onshoreandoffshorewindfarms,solarfarms,energystorage,electrolysers,andcarboncaptureandstorage,andautomaticallygrantingpermitsfordefinedgreenprojects(likesolarorwind)thatmeetspecifictechnicalcriteriaiftherearenoobjectionstotheapplicationwithintwomonthscould,forexample,halvethedevelopmenttimeforgreenprojectswithoutcompromisingenvironmentalandsocialconsiderations.MaintainingourworldclassinnovationecosystemfromR&D,start-upandscale-uppathwaysandlinkingacademia,businessandpolicymakerswillkeeptheindustryattheforefrontofthetechnologicalrevolution.Thenextgovernmentshouldprotectthesecompetitiveadvantageswithlongtermfundingandthesupportinginstitutionalestablishments,includingtheUKBatteryIndustrialisationCentre,FaradayInstitution,HighValueManufacturingCatapultandtheAdvancedPropulsionCentre.Thiswillactasabeacontoinvestorsandconsumersalike,aidinglocalisationofkeyproductionandsupportinganchorvehiclemanufacturersaroundwhichanactiveandhealthysupplychaincanco-locateandco-exist.Thefundamentalsofoursectorarestrong,despiterecentheadwinds.TheUKisopenandprimedforNetZeroby2050.UKAutomotivecanandmustbeattheforefrontofthisgreentransformation.DE-RISKPRIVATECAPITALREGULATORYREFORMGLOBALDIPLOMACYMoregenerousincentivesandsubsidiesCompetitiveenergycostsSupportrenewableanddecarbonisationprojectsSupportclean-techstart-upsandscale-upsGreentechco-investmentUpskilltheworkforceSource:RacetoZero,smmt.co.uk/wp-content/uploads/sites/2/SMMT-Race-to-Zero-report.pdfUpdateoutdatedregulationandplanningrequirementstobeappropriatefortheelectricvehicleageReduceredtapeandfast-trackapprovalsforbatteryproductionandrenewableenergyprojectsSpeedupgreentechnologyprojectfundingDecoupleelectricitypricesandrenewablesfromgasExpandandenhancefreetradeagreementsPartnerwithmineral-richnationsPromoteBritishinvestmentincriticalmaterialminingProvidebestpossibletradeconditionsforremanufacturingTheUnitedStateshasputforwardmorethanintheraceforNetZeroacrossgrantsandloansforcleantech,includingautomotiveandenergy,infrastructureandsemiconductors,withtheEUrespondinginkind$2trillionMorethanhasbeencommittedtoUKelectricvehicleproductionandgigafactoriesbetween2011and2022,withbillionsmoreinvestedgloballytobringnewtechnologytomarket£11billion20112022Theautomotivesectortypicallyinvestsmorethaninresearch&developmentannuallyandboasts22dedicatedR&Dcentresacrossthecountry£3billionTRANSFORMATION:PLEDGE1UKAutomotivecontributes£16billioninGVA£78billionturnoverfromautomanufacturingannuallyAGREENAUTOMOTIVETRANSFORMATIONSTRATEGY-EVSUPPLYCHAINFOCUS7THESOCIETYOFMOTORMANUFACTURERSANDTRADERSRECOMMENDATIONS→Ensureeveryonehasa‘righttocharge’bymandatingdeliveryofpublicchargingandrefuellinginfrastructurethroughbindingtargets,leadingtoasignificantupliftandreliabilityofalltypesofpublicchargersacrossthewholeUK.→Committoaninfrastructurestrategywhichenablestherolloutandfundingofcommercialandheavydutynetworkstosupportthemovementofgoodsandpeopleacrossthecountry.→Maintainappropriateincentivesandgrants,particularlyforcommercialandfreightvehicles,tosupportthedevelopment,adoption,andtotalcostofownershipofzeroemissionvehiclesandattractzeroemissionproductstotheUKmarket.→Ensureafairsystemofmotortaxationanddutiesthatencouragetheswitchtozeroemissionandprovideslongtermcertaintyandaffordabilitytoconsumers.PLEDGE2:NETZEROMOBILITYFOREVERYONEPOLICYACTIONFosterareliableandaffordableUK-widerechargingandrefuellingnetworkthroughbindingtargetscomplementedbyamotortaxandregulatorysystemthatensuresnooneisleftbehindinthetransitiontoNetZero.NETZERO:PLEDGE200000000000008THESOCIETYOFMOTORMANUFACTURERSANDTRADERSKEYDATABACKGROUNDSuccessfuldecarbonisationcanonlybeachievedifnooneisleftbehind.Foreveryonetobenefit,weneedareliableinfrastructurenetworkplustaxationandregulatoryframeworksthatpreserveprosperity,equityandenhancechoicewhereverdriversmayliveorwork.Thiswillrequireallstakeholderstoplayarole.Withazeroemissionvehiclemandatefrom2024to2030,greaterandfasterinvestmentininfrastructureandmoreincentivestoencouragepurchaseareessentialtodriveconsumerconfidenceandaccelerateuptake.Ouroutlookremainspositive.Withtherightregulatoryframework,therightflexibilitiesandtherightsupportmechanisms,theUKautomotiveindustrycandeliverasuccessfulandcompetitiveZEVtransition.,however,thisiscontingentonthekeyassumptionthatcharginginfrastructureisnolongerabarriertomassmarketuptake.Leftentirelytomarketforces,therolloutofchargepointswillriskprioritisingcommercialratherthanconsumerinterests,withmoreprofitabletypesofchargersandhigh-utilisationlocationsdominatingandtheequitableprovisionofpublicchargersbecomingincreasinglyinadequate,inequitableanddisproportionateasEVuptakeaccelerates.Unlockingthefullenvironmentalandsocioeconomicbenefitsofthistransitionrequirescollaborationinvolvingindustry,governmentandkeysectors,includinginfrastructureandenergyproviders.Creditshouldbegiventogovernment,localauthoritiesandchargingsectorforthegrowthininfrastructuresince2011.However,myriadstudiesandconsumersurveyshaveinvariablyandconsistentlyshownthatinadequateinfrastructureprovisionisstillamajorconcernformanyconsumers–andisamainbarriertomassuptake.Rangeanxietyhasbeenreplacedbycharginganxiety.Thenextgovernmentmustputconsumerinterestsfirstineveryaspectofcharginginfrastructuredevelopmentandexpansionwiththreekeyprinciplesinmind:adequacy,experienceandequity.Wemustchallengeallstakeholderstomakechargingaseasyas,ifnoteasierthan,conventionalrefuelling.Nosocioeconomicgroupsorcommunities,particularlythoseinruralareasorreliantonon-streetresidentialcharging,shouldbedisadvantagedorleftbehind.Publicchargingmustalsobeaffordablesothatconsumersarenot’penalised‘inthepocketfornothavingaprivatedrivewayoraccesstoadedicatedhomecharger.Wealsorecognisetheneedtodevelopthefuturemotortaxationroadmapasthetransitiontozeroemissionvehicleschangestheobligationsondrivers.Thismustbecarefullycraftedasconsumersmaketheshifttonewtechnologies,allowingthemtomakeaninformedchoiceandhavegreaterunderstandingoftheirtotalcostofownershipandfinancialobligations.Anythingthatcouldactasadeterrenttothosewhoaremaking,orconsideringmaking,thetransitiontozeroemissionvehicleswhenthereisalreadyastep-changeincostcomparedwiththesamecombustionenginevehicleequivalentshouldbecarefullyconsideredandwellpublicised.Today,consumersfaceadoublehitoncostaspurchaseincentivesforprivatebuyersintheUKhavebeensystematicallyreducedandremovedinthelasttwoyears,makingtheUKoneofthefewmarketsaroundtheworldtohavenodirectconsumerincentives–whileothermajormarketsstillmaintainorareintroducingtheminbothnewandusedmarkets.Acomprehensivereviewofmotoringtaxesandzeroemissionincentivesisrequiredtoprovidelonger-termconsumerconfidenceandtosupportmassmarketuptakeandfleetrenewal.Governmentwillphaseoutnewsalesof:Carregistrationsforbatteryelectric(267,000)andplug-inhybrid(101,000)represented22.9%ofthemarketin2022.In2024figuresareforecasttobe:TheUKistargetingbetween300,000and700,000publicchargersby2030202340,000withjustover40,000availableinMay2023.Bycomparison,Germanyistargeting1millionby2030.Pureinternalcombustionenginecarsandlightvansby2030Othernon-zeroemissiontechnologiesby2035Non-zeroemissionheavyvehicles(>26t)by2040444,000BEV145,000PHEVNETZERO:PLEDGE2Foreveryonetobenefit,weneedareliableinfrastructurenetworkplustaxationandregulatoryframeworksthatpreserveprosperity,equityandenhancechoicewhereverdriversmayliveorwork2030203520402030700,0009THESOCIETYOFMOTORMANUFACTURERSANDTRADERSRECOMMENDATIONS→EnableaNetZeroautomotiveworkforcethatdevelopsfuturedomestictalent,retainsandupskillstheexistingworkforce,andcontinuestoattractglobaltalentandexpertise.→Championthedeliveryofalong-term,onlineNationalUpskillingPlatformforautomotiveandadvancedmanufacturing.–Identifyandacceleratethegrowthofelectrificationanddigitalupskillingwhichwillprovideinsightintoskillsopportunitiesandlinkemployers’needstoappropriatemodulartrainingprovision.–Createcentralisedgovernancestructuresandtrusted,government-backedbranding.→SupportworkforceupskillingthroughthereformoftheApprenticeshipLevy,allowingaproportionofunspentLevyfundstobefocusedonprioritytrainingareassuchaselectrification,decarbonisationanddigitalisation.→ContinuetoelevateSTEMinfurthereducationandpromoteautomotiveandmanufacturingaslife-longcareeropportunities,contributingpositivelytogreengrowth.→RegularlyreviewskilledvisaroutesandshortageoccupationliststoreflectbusinessneedsastechnologyevolvesatpacetoattractinternationaltalenttotheoverallbenefitUKindustry.PLEDGE3:GREENSKILLSFORAGREENERFUTUREPOLICYACTIONOffertheskillsworkerswantbycreatingaone-stop-shopnationalupskillingplatform,anddevelopthefuturetalentbusinessneeds,combinedwithgreaterSTEMeducationinschoolsandadynamicimmigrationsystemthatattractsglobaltalent.GREENSKILLS:PLEDGE3KEYDATA10THESOCIETYOFMOTORMANUFACTURERSANDTRADERSBACKGROUNDAutomotivecreatesahighlyskilled,highwageworkforceacrosstheUKfromtheproductionfloorthroughdesignandengineeringtotheexecutiveofficesacrosseveryregionintheUK.Morethan208,000peoplearedirectlyemployedwithmorethan800,000inthewiderautomotivesectorincludingretail.Abroadrangeofotherindustriesrelyonautomotive,suchasrawmaterialsandchemicalproducersthatmakeupparts,componentsandvehicles,inturnprovidingmobilityandlogisticswhichpowerthewholeeconomy–fromfooddeliveriestotheschoolrun.TheendofsaleoftraditionalinternalcombustionenginevehiclesintheUKby2030meansthatdespiteourworld-renownedmanufacturingforce,thesectormusturgentlyre-establishitselfasanattractiveanddiversesectorinwhichtobuildacareer.Manyexistingworkers,alreadycontributingtoourindustry,willseerolesandopportunitiesevolveinthezeroemissiontransitionandweneednewandemergingskillsatalllevelsandacrossmultiplebusinessareastoday,aswellastosecurethetalentpipelineforthefuture.Apprenticeshipshavelongplayedakeyroleinourindustryand,asaresult,gettingapprenticetrainingandfundingrightisofutmostimportance.It’swhythesectorhasalwaysbeensocommittedtoemployer-ledapprenticestandardsandcalledforreformstotheApprenticeshipLevy.It’scriticallyimportanttomakesurethatcoursecontentandspendingmatchesbusinessneeds,sothattheindividualsenteringtheindustryandthecompaniesemployingthemareconfidentintheirabilitytobejob-ready.AnAutomotiveCouncilsurveyatthestartof2023foundthereareapproximately7%productionlabourvacanciesintheautomotivesupplychain,comparedwithaUKnationalaverageofcirca3.4%,withsoaringdemandforemergingskillsrequirementsindigitisation,softwareandelectricalengineering.Thelevelofdigitalisationtoautomotiveproductsishighlycomplexandmanufacturershavespecificskillrequirementsrelatingtosystemsengineering,thedigitalfactoryofthefuture,andsoftwaredesign.Manufacturersalsoneedtoensuretechnicalcompliance,forexampleincybersecuritycertification,andthattheirtechnicallyskilledworkforcecanreskillfromICEvehiclestoBEVs.Tomaintainworld-leadinglevelsofproductivityandmeetconsumerdemand,wemustcontinuetoattractinternationaltalentandskilledlabour,anddevelopacriticalmassofdomesticcapabilityandtrainingcapacity,whilerecognisingthatdevelopmentofadomestictalentpipelinewilltakesometime.Wemustalsomoreregularlyreviewshortagestobedynamicinrespondingtorapidlychangingskillsdemandsandbringintheverybesttalentfromaroundtheworld.TheUK’sretailandaftermarketsectorscontainarangeoforganisations,fromsmallvehiclerepairandserviceworkshopstolargedealershipchains.Theseequallyfaceanurgentneedtomaintainexistinginternalcombustionengineskillsetsforvehicletechnicianswhiletransitioningtonewpowertrains,enablingtheiremployeestoworksafelywithelectricvehiclessothattheseproductscanbeserviced,maintained,andrepaired.MuchoftheUK’sautomotiveworkforceisalsoemployedbysmallandmedium-sized(SME)companiesthatareexemptfromtheApprenticeshipLevyanddonothavelargefuturetalenttransformationprogrammes.Forthesecompanies,findingandkeepingskilledandexperiencedlabourisincreasinglychallenging.Finally,wemustcontinuetoincreasethediversityofourworkforces,whichwillmakethesectorcollectivelystronger,moreresilientandreadyforwhateverchallengeslieahead.ManufacturersarecommittedtoschoolsoutreachatallagesandrecognisethecontributiontheymustcontinuetomaketoelevateSTEMawarenessinyoungpeoplefromallbackgrounds.Automotivemanufacturingannualsalariesaretypically14%higherthantheaverageacrossallUKemploymentandthecombinednationalsalarycontributionofautomotivemanufacturingamountstooverTherearemorethan3,000apprenticeshipsemployedbyvehiclemanufacturersandTier1suppliers£6billionAutomotiveemploysmorethan:TheFaradayInstitutionindicatesathrivingindustrycouldprovideemploymentfor170,000inEVmanufacturing,Everyjobinthesectorcreatesanother2.2jobsinsectorsfromchemicalsandsteeltofinanceandadvertisingby2040GREENSKILLS:PLEDGE3Manyexistingworkers,alreadycontributingtoourindustry,willseerolesandopportunitiesevolveinthezeroemissiontransitionandweneednewandemergingskillsatalllevels208kdirectly800kwidersupplychain35,000ingigafactories65,000inthebatterysupplychain11THESOCIETYOFMOTORMANUFACTURERSANDTRADERSRECOMMENDATIONS→EnsureFreeTradeAgreementssupporttheUK’sindustrialcapabilityandchangingtechnologiesthroughappropriateRulesofOriginandmarketaccessrules.→Establishandmaintainnewandinnovativepartnershipswithminerals-richcountriessuchasAustralia,CanadaandIndonesiatosecuresuppliesofcriticalrawmaterialsandotherinputs.→Createthebestpossibleconditionsforremanufacturingandthecirculareconomytosourcetariff-freefromanywhere,toprocessand/orrecyclethemintheUKforre-useathomeandabroadwithouttariffs.→Deliveramodernborderandcustomsframeworkthatfacilitatessmooth,cost-effectivetrade,supportedbytradeandexportservicesandfunding.PLEDGE4MADEINBRITAIN–MADEFORTHEWORLDPOLICYACTIONPositionautomotiveandadvancedmanufacturingsupplychainsatthecoreofUKtradepolicyandmarketaccess.Secureaccesstoglobalmarketsfortariff-freeexportofBritish-madevehicles,batteriesandgreentechnologies,anddeliverexportsupportservicesthatallowbusinessesofallsizestosucceed.MADEINBRITAIN:PLEDGE4KEYDATA12THESOCIETYOFMOTORMANUFACTURERSANDTRADERSBACKGROUNDBritainhasalwaysbeenanoutward-facingchampionoffreeandglobaltrade,whichhasgivenconsumerswide-rangingchoiceatcompetitivepricesacrossdifferentzeroemissiontechnologies.UKAutomotiveisanexemplarofinnovative,highvalue,highqualityBritishdesign,engineering,manufacturingandassembly–withglobalmarketappeal.Fromsmallvolumeandluxuryproducerstolargevolumecarandlightvanmanufacturing;heaviercommercialvehicles,includingbuses,trucksandcoaches,toremanufacturingandthecirculareconomy,theUKofferisunrivalled.Weproduceandexportitall.Theautomotivesectordeliversalmost10%oftheUK’stotalannualgoodsexportswithourproductssoldinmorethan130countriesaroundtheworld.Lastyear,exportswerevaluedinexcessof£34billiondespitetheeconomicheadwindsanddisruptioninchangingtraderules,thepandemicandsupplychainissues.Butcompetitionisfierce,andtheracetozeroisglobal.Tocontinueoursuccess,weneedfreetradeagreementsandtradepartnershipswhichprioritiseourstrengths,buildeconomicresilience,andopenupnewmarketsandsupplychainsforworld-classvehiclesandcomponentstobemadehereinBritainandexportedtotheworld.Forexample,challenginglocalcontentrequirementsunderfreetradeagreementsrequireourindustrialandtradepolicytobeco-ordinatedtodriveinvestmentindomesticcapabilities(suchasmineralsrefining,cathodeandanodeactivematerials,batterycomponentandcellmanufacturing,andelectricdriveunits).Alsocrucialareachievabletradeandoriginrequirementstoensurewecanbenefitfromandmaximisetariff-freetrade,includingwiththeEU,whichwillcontinuetobetheUK’smostsignificantautomotivetradingpartner.Astechnologyevolves,weneedgreateraccesstocriticalmineralsandnewinputsofproductionwhicharesustainable,affordableandsupportourindustrialcapabilitiesandinternationaltreatyobligations,andavoidnon-tarifftechnicalbarrierstotrade.Therapidshifttoelectrified,lowemissionandautomatedvehiclesoffersahugemarketopportunityasBritishmanufacturersdevelopnewvehiclesandpowertraintechnologies.Thewindowofopportunityisopennowbutwillnotwaitforever.Finally,businessesneedamodernborderandcustomsframeworkthatfacilitatessmooth,cost-effectivetradeandexportsupportservicesandfundingwhichelevateandpromotetheUKasthebestplacetodobusinessandasaglobalmanufacturingdestinationofchoice:MadeinBritain,madefortheworld.Totalautomotivetradewasworthin2022forfinishedvehicles,engines,partsandcomponents.£94billionMADEINBRITAIN:PLEDGE4Theautomotivesectordelivers10%oftheUK’stotalannualgoodsexportswithourproductssoldinmorethan130countriesaroundtheworldexceedingthe£2.8bnvalueinexportsofinternalcombustionenginecars(Anincreaseofmorethan137%sincetheendof2020).ExportsofUK-builtbatteryelectric,plug-inandhybridpassengercarstotheEUwereworth£5.6bnin2022,TheUKexportsaroundofallproductiontosome130countries,withmorethanhalfheadedfortheEU,withsignificantgrowthinAsianmarkets.80%GlobaldemandforBritishcars,marketshare2022USA13.3%EU57.6%China8.7%Japan2.9%SouthKorea2.0%Australia1.9%Turkey1.4%Canada1.3%Switzerland0.9%SouthAfrica0.7%8outof10carsmadeintheUKareexported606,838carsmanufacturedforexportin202213THESOCIETYOFMOTORMANUFACTURERSANDTRADERSRECOMMENDATIONS→Deliveraneasilyaccessibleabundantsupplyoflowcostzeroemissionelectricityforbothconsumersandindustry→Committomaintainandgrowprogrammesthatenableindustrialtransformationanddecarbonisation,suchastheIndustrialEnergyTransformationFundandClimateChangeAgreements,throughto2030.→Acceleratefundingandpermissions,andincreasecapability,toreducewaitingtimesforgridconnections,andupgradesforproductionfacilitiesandcharginginfrastructure.→Confirmalong-termcross-sectordemand-sidestrategyforhydrogen,includingmanufacturingandtransport,withtargetedsupporttodevelopanationalhydrogenrefuellingnetworkandanefficientandaffordablesupplyofhydrogenfortransportapplications.PLEDGE5:POWERINGTHEUKCLEANTECHREVOLUTIONPOLICYACTIONEnsurenetzero-criticalindustriessuchasautomotiveareabletoaccessaffordableandinternationallycost-competitivezeroemissionenergytopowerthecleantechrevolution.Dedicatedenergyandinvestmentmeasuresshouldbeavailabletomakezeroemissionvehicleproductionanduseareality.CLEANTECH:PLEDGE5KEYDATA14THESOCIETYOFMOTORMANUFACTURERSANDTRADERSCLEANTECH:PLEDGE5BACKGROUNDTheautomotivesectorispredominantlyahighlycompetitive,lowmarginindustrybutmustspendmillionsofpoundsonenergyeachyear.Energyistypicallythesecondlargestin-housecostinmanufacturing,andtheUKhasthehighestelectricitycostsinEurope–andtheyareincreasingmorerapidlythanincompetitorcountries.Withprojectionsofelectricitydemandfacinglargeincreasesby2035and2050,thereisnodoubtthatmorecapacity,betteruseandflexibilityisrequired.ZeroemissionenergysuppliescanbeanimportanthooktoattractinvestmentinUKautomotive,withbusinesseskeentoproducezeroemissionproductsinfullydecarbonisedmanufacturingfacilities.Theentireindustryiscommittedtodecarbonisingindustrialpracticesfromwelltowheel,butthisisimpossiblewithoutaccesstolowcost,stablesuppliesofcleanenergytomaintainthesustainabilityandcompetitivenessofUKvehiclemanufacturing.Abundantrenewableenergycanunlockthecleantechnologyrevolutionforbusinessandconsumersatthispivotalmomentinthetransitiontozeroemission.Electricvehiclesandbatteriesaretypicallymoreenergyintensivetoproducethanconventionallyfuelledcars,meaningaffordablecleanenergywillplayamajorroleininvestmentdecisionsonwheretobuildnextgenerationmodels.Thereisaleadingroleforgovernmenttoensureindustries–particularlythoseonwhichithassetaccelerateddecarbonisationtargets–arenotheldback.Attentionshouldbegiventonetzerocriticalindustriesthatcansecurequickcarbonsavingsefficiently,andenabletheUKtomeetcarbonbudgetsintheleadupto2030andbeyond.Withtherightconditions,theUK’senergymixprovidesanopportunitytobealowcarbonhubforEVproductionandtheEVsupplychainandeliminateemissions–notjustdisplacethem.TheUKcanbepositionedasaplacewheregreenenergyisusedtoproducegreenbatteriesandpowertrains,whichthenpowergreenvehicles.Tacklinghighenergypricesisawin-winforbusinessesandconsumers.Expensiveelectricitybillsareadeterrenttomakingtheswitchfromcombustiontozeroemissionvehicles,astheydamagecostofownershipcomparisons,inflateproductioncosts,andundermineconsumerandbusinessconfidence.TheUK’sCarbonBudgetsdeliveryofNetZerodependsonarapidtransitiontozeroemissionvehicles,manufacturedwith,andpoweredby,cleanenergy.Withthegrowthofzeroemissionvehicles,thetransportandelectricitysectorsarebecomingincreasinglyinterlinked.Thenextgovernmentshouldthereforedesignatetheautomotivesectorasanetzerocriticalindustry,linkedtoadedicatedpackageofenergyandinvestmentpoliciesthatencouragegrowthandtransformationwithinthesector,andfast-tracklong-termdecarbonisationoftheUK’senergymixacrossthewholeeconomy.AutomotivecostsaresignificantlyhigherintheUKthaninsisterplantsacrosstheEU,withelectricitycostsonaveragedoublethoseintheEU,andgascosts60%higher.Sevenin10SMMTmembersareconcernedabouttheimpactofonerousenergycostincreasesontheirbusinessoperations.TheUKhasastrongrenewableenergyfoundation.Asof2022,Britain’ssecondlargestsourceofenergywaswindpowerand,overall,almostathirdofallelectricityusedintheUKcamefromrenewables80%higherOftheworld’stop20automotiveproducingcountries,theUKcurrentlyranksseventhbestforlowcarbonenergygenerationaheadofGermanyandtheUSA,butbehindFrance,SpainandItaly.Asof2021,emissionsfromUKenergygenerationwere-17%lowerthantheEUaverage.CurrentUKenergygridmix2022%4.4%Solar1.8%Hydro38.5%Gas26.8%Wind15.5%Nuclear1.5%Coal5.5%Imports(mixedsource)0.9%Energystorage5.2%BiomassWiththegrowthofzeroemissionvehicles,thetransportandelectricitysectorsarebecomingincreasinglyinterlinked269gCO2/kWh7th15THESOCIETYOFMOTORMANUFACTURERSANDTRADERSJLRisahouseofworld-renownedluxuryBritishbrandsincludingRangeRover,Defender,DiscoveryandJaguar.Thecompanyhascommittedtoinvest£15billionoverthenextfiveyearsintotheirindustrialfootprintasthenextchapteroftheirReimaginestrategyunfolds.TheUKisattheheartofJLR’sglobaloperationswithover3,000employeesacrosstwelvesites.JLR’sindustrialfootprint,vehicleprogrammes,autonomous,AIanddigitaltechnologies,andpeopleskillswillallbenefitfromthissignificantupliftinfunding.Inaboosttothenation’sownnetzeroambitions,thecompanywillaccelerateitstransitiontomodernluxurycarmanufacturingandelectrificationhereintheUK.–TheHalewoodplantinNorthWestEnglandwillbecomeanall-electricproductionfacilityanditsnextgenerationmedium-sizeSUVarchitecturewillnowbepure-electric,adaptingitsvehiclelineuptomeettheneedsofdifferentmarketsaroundtheworld.–IntheWestMidlands,thefirstofthreereimaginedmodernluxuryJaguars–a4-doorGT–willbebuiltinSolihull,forsaleinselectedmarketsfrom2024.CastleBromwich’sstampingfacilitiesthatpreparepressedbodymetalworkforJLR’svehicleswillevolvetoprovidebodyworkforelectricmodels.TheEngineManufacturingCentreinWolverhampton–currentlyproducinginternalcombustionengines–willbecometheElectricPropulsionManufacturingCentremovingtoproduceelectricdriveunitsandbatterypacks.–Progressonindustrialdecarbonisationwillseea46%reductioninGreenhouseGasemissionsacrossmanufacturingandoperations(Scope1&2)andby54%acrossvehicleemissionsandvaluechainsbytheendofthedecade.–State-of-the-artdigitalisationwillhelptodeliverend-to-endvisibilitythroughoutthesupplychain,greatercontrolandin-housedesignoftheBEVvaluechain,andalong-termstrategytoensuresecurityofsupplyandresilience.TorealisethefullpotentialofthetransitionthegovernmentmustworkinpartnershipwithdomesticmanufacturerslikeJLRtocreatethecompetitivebusinessandtradeenvironment,regulatorycertainty,skillsprovision,andoverarchingstrategythatthiscriticalperiodleadingupto2030requires.However,thechallengeisalsoclear.Forexample,bytheendofthedecadeJLRforecastglobaldemandforapproximately50giga-watthoursofbatterycellsfortheirelectrifiedvehicles.JLR’spubliccommitmentandsubstantialinvestmentinlocalproductionepitomisesautomotive’scommitmenttoanetzerofutureandshowcasestheverybestofBritishindustry.Together,wehavetheabilitytopositionUKautomotiveatthecentreoftheglobaltransitiontozeroemissionmobilityiftherightconditionsareinplace.Tocontinuetocompeteinthehighlycompetitive,globalautomotivemarket.ToinvestwithconfidenceintheUK’sindustrialfootprint.Andtoacceleratenetzeroforeveryone.JLRCREATINGMODERNLUXURYANDDELIVERINGNETZERO,FROMBRITAINTOTHEWORLDCASESTUDY:JLR16THESOCIETYOFMOTORMANUFACTURERSANDTRADERSSince1992,Toyota–theworld’slargestvolumevehiclemanufacturerlastyear–hasbeenproducingvehiclesandengineshereintheUKandcontinuestoinnovateforthefuturewiththedevelopmentoftheprototypehydrogenfuelcellToyotaHilux.TMUKemploys3,000employeesacrosstwositesandtheBurnastonsiteishometotheiconicCorollahybridmodelinEurope.Formorethan20years,Toyotagloballyhasbeenpromotingamulti-pathapproachtocarbonneutralitybyofferingadiversevehicleline-upofallelectrifiedtechnologiesincludinghybrid,plug-inhybrid,batteryelectricandhydrogenfuelcellvehicles.InSeptember2021,TMUKwasabletoestablishaprojectconsortiumtopioneerthenextgenerationofhydrogenfuelcelltechnologiesinDerbyshireattheBurnastonPlant,leveragingtargetedfundingfromUKGovernmentthroughtheAdvancedPropulsionCentre(APC)forzero-emissionsvehicledevelopmenttomaketheprojectareality,andbuildlongtermexpertiseandself-sufficiencyinadvancedmanufacturingofnewdrivetrains.IncollaborationwithhighlyskilledUK-basedtechnicalengineeringpartners,includingRicardo,ETL,D2HandThatchamResearch,theprojectaimstoadoptsecondgenerationToyotafuelcellcomponents,asusedinthelatestToyotaMirai,forthetransformationofaHiluxintoafuelcellelectricvehicle.TheinitialprototypevehicleswillbeproducedatBurnastonduring2023,whichifsuccessfulwouldleadtopreparationsforsmallseriesproduction.ThesuccessfulachievementoftheprojectforTMUKinagloballycompetitiveindustryepitomisesthesymbioticlinkbetweendomestic,vibrantproductionandahealthymarket,accompaniedbyasupportiveinnovationecosystem.TheUKisoneofthekeymarketsforpick-uptrucksandisanimportantmarketforToyota.Thisfundingrepresentsatremendousopportunitytodevelopazero-emissionsolutioninacriticalmarketsegment,whichwillinturnhelptofosteravirtuouscycletobringgreaterinnovationandemergingtechnologiestomarket.TheUK’sinnovationecosystemplaysafundamentalroleintheUKautomotivelandscapeofferinguniqueopportunitiestobridgethegapbetweenindustryandfuturetechnologicalrequirements,andnotablysupportlaterstageR&Dthattakesaproductfromproofofconcepttoprototypevehicles.Maintainingaworld-class,well-fundedcollaborativeapproachtoinnovationto2030andbeyondshouldbeawin-winambitionforgovernmentandindustry.Fromproducttoproduction,Toyotaisalsodrivingindustrialdecarbonisationtosupportnetzero,withambitionstomakeDeesideEnginePlantcarbonneutralby2025andBurnastonbytheendofthedecade.Theinstallationof7.8MWpofsolarcapacityhasalreadydeliveredsignificantcarbonsavings.Prioritisingupgradedgridconnectionsandongoingsupportfordecarbonisingindustrialprocessescouldunlockafurther16.3MWpcleanenergyduring2024toaccelerateambitions.TMUKisfullycommittedtodeliveringazero-emissionfuturetoday,andfordecadestocome.TOYOTAMOTORMANUFACTURING(UK)LTDCHAMPIONINGVEHICLEANDENGINEMANUFACTURINGFROMTHEHEARTOFBRITAINCASESTUDY:TOYOTA17THESOCIETYOFMOTORMANUFACTURERSANDTRADERSHVSwasfoundedinGlasgow,andrejuvenatedin2020,rapidlygrowingfromseventofiftyemployeesacrossthreesites.ThisnewBritishOEMseekstodisruptthecommercialandheavygoodsvehiclemarketswithnewzeroemissionpowertraintechnologies.HVSiscommittedtomanufacturingintheUKwithapredictedworkforceof600acrossallkeydisciplines,followingagrowthstrategythatprioritisesagility,remainslean,andutilisespartnershipstofurtherenhancecapability.TheZEVchallengewillshapethefutureoftheheavy-dutysegment,whichwillincreasinglydemandtherighttechnologyfortherightuseandforcetheevolutionoftraditionalbusinessoperatingmodelsthatcanamplifythesehighvalueassetswithmaximumreturnoninvestment,improvedtotalcostofownership,andprofitability.Agovernment-backedautomotiveecosystemhassofarhelpedHVStocatalysewiderinvestmentandcanactasavoteofconfidencethattheUKwantstobealeaderinzeroemissionmobility.Earlyprivatefundingof£5milliontodevelopamediumcommercialvehicletechnologydemonstratorwasquicklyfollowedbyAPCgrantfunding–worth£30million–todevelopapropulsionprojectfortheHGVtractorunitpowertrain.Afurther£25millionofprivateinvestmentwasreceivedduringthattimetomatchfundtheAPCandfurtherdeveloptheirvehicles.AsaconsequenceHVShasbeenabletosuccessfullypursueagroundupapproachtothisnewtechnologycreatinginnovativepatents,groundbreakingsoftwaresystems,andoptimisingthevehicleforhigh-loadcarryingzeroemissionuse–helpingtodevelopaproductrefuelledinaround20minutes,comparabletodiesel,withupto600kmrange.Fromstart-up,toscale-upandcommercialrollout,HVSalsofacessimilarchallengestothosefacingincumbentmanufacturersonthedecarbonisationjourney:–Incentivestobridgetheinvestmentgapuntilcostparityisachievedlaterinthedecade,e.g.Germanycurrentlyoffersupto80%ofthecostdifferentialforheavyZEVstoequivalentdieselmodels.–AreliableUKhydrogenrefuellingnetwork,whereHVSanalysissuggestsasfewassevenhubstationscouldofferinitialUK-widecoverageforset-route,longdistancerequirements–RegulatorycertaintytoensuresuitableinteroperabilitywiththeEUandpeermarketstoavoidcostlyormultiplyderivativevehicles(especiallyintheN3category).–Accesstoglobalsupplychainsandhelptomatureanddiversifytheemergingfuelcellcomponentmarkets,typicallydominatedbyAsia-PacificandNorthAmerica.–And;developnewskillsandcoursesacrosshighvoltage,hydrogen,andaftersalesthroughanallstakeholderapproach.e.g.HVSareworkingwithlocalcollegestoraiseawarenessandskillstraininginhydrogenandelectricvehicles,todeliverjobreadyworkersintheabsenceofnationallyavailableadvancedcourses.Ultimately,thereisanopportunityforanactiveroleandgreatercollaborationbygovernmenttoraiseawarenessandpublicperceptionofhydrogentechnologies,fostertheheavycommercialvehiclesector,buildoutinfrastructure,andremovebarrierstogrowth.HYDROGENVEHICLESYSTEMS(HVS):THEUK’SFIRSTINDIGENOUSHYDROGENCOMMERCIALVEHICLE,DESIGNEDANDBUILTFROMTHEGROUNDUPCASESTUDY:HVS18THESOCIETYOFMOTORMANUFACTURERSANDTRADERSWithaheritagestretchingbackover125years,HalfordshasestablisheditselftodayasoneoftheUK’sleadingretailersofmotoringservicesandproducts.ThroughHalfordsAutocentres,itisalsooneofthenation’sleadingoperatorsinvehicle,servicing,maintenanceandrepairsfroma650garagesandover700mobilevans–with90%oftheUKpopulationlivingwithin20minutesofaHalfordslocation.TheIndependentAftermarketis,however,facingacuteskillschallengesinthetransitiontozeroemissionmobility.Thereisashortfallinapprenticeshipsprogramsandthoseseekingacareerpathwayinautomotiveastheestablishedmodelisupendedbythenetzerotransformation.ThereisanevergreaterdemandforSTEM-basedcompetenciesasexistingrolesevolvefromtraditionalhands-on,heavylabourtowiringdiagramsanddataanalysis.Positively,thechangingprofileofthesejobsalsoopensupthesectortogreaterdiversityandopportunitiestoattractawiderrangeofcandidateswithdifferingabilities.ButtheaftermarketmustnowbalanceservicingtheexistingUKcarparcfromcombustionenginetohybridtothegrowingzeroemissionfleet.Halfordshavesoughttoleadtheway,runningin-houseprogramssince2016andtrainedover1100technicianswiththesenewskills,introducingEVcoursesatlevel3from2018butthereisahighdemandacrosstheentireofautomotive.Asaresult,HalfordscannowserviceeverymakeandmodelontheUKmarketwiththerightskills,equipmentanddataaccess.InNovember2022,theycommittedafurther£3.5millionfortrainingandrecruitmentovernext12months,introducedover-50sapprenticeshipsandcontinuedexpandthecatchmentforpotentialtalentbypioneeringnewavenues.OneexampleisanewprogrammeincollaborationwiththePalmerFoundation,InstituteoftheMotorIndustry,FirstStepTrustandLondonSouthEastColleges,togetyoungpeoplefromdisadvantagedbackgroundsintoautomotive.ItbringsnewVRplatformsandcontrolledenvironmentstohelppeopleembarkonthefirststepofacareerinautomotivewhomaynothavenaturallygravitatedtothesepositions.Launchedinlate2022,thetrialisalreadyyieldingsuccesswith6youngpeopleduetostartapprenticeshipsinSeptemberfrom22worktrialsdrawnfromthisemerging,diversetalentpool.ThereisaconveningroleforthenextgovernmenttogrowthevolumeandstandardsofskilledEVandhydrogentechniciansacrossthewholeindustryinpartnershipwithemployers,includingthroughthedynamicuseofapprenticeshipslevyfunds,schoolsengagement,andappropriateskilledvisaroutes.Thiswillimproveconsumerchoiceanddrivecompetitioninthemarketplacegivenapotentialshortfallof4,500qualifiedtechniciansby2029,increasingto16,000by2032.11IMIEVTechniciansForecast–March2023HALFORDS:GREENSKILLSFORTODAY,TOMORROWANDTHEFUTURE,KEEPINGBRITAINONTHEMOVECASESTUDY:HALFORDS19THESOCIETYOFMOTORMANUFACTURERSANDTRADERSLKQEUROCARPARTS:RETHINKINGSUSTAINABILITY,EQUITYANDINCLUSIONTOBETTERSERVEPEOPLE,PLANET,ANDCOMMUNITYINTHEMOSTDIVERSEVEHICLEPARCINEUROPECASESTUDY:LKQEUROCARPARTSLKQEuroCarPartsisoneoftheUK’sleadingdistributorsofpartsforallmakesofcarsandlightcommercialvehicles.Theyemploymorethan8,000employeesacrossalmost280branches,15rapidfulfilmentcentresand2centraldistributioncentressupportingindependentaftermarketandconsumers.Thebusinessisstartingtosupportover4000modelsincludingnewBatteryElectricVehiclemodels,withover2000BEVpartsstockedtodayandintroducingawidersustainabilitystrategythatemphasisesplanet,peopleandcommunity.Fromaplanetperspective,LKQEuroCarPartsoperatesasignificanttransportanddistributionfleettokeepthebusinessandcustomerssuppliedanddecarbonisingfromwithin.TheirHGVfleetof120vehiclesnowincludesthirtyCNGvehiclestoreduceCO2emissionsandenabletheexplorationofdifferentwaysofoperatingtoimprovesustainabilityandenvironmentalperformance.TheyhavealsointroducedelectricmodelsintotheLCVfleettosupportlastmiledelivery.Thisgoesbeyondthevehicletoo,withplannedchangestopackagingthatwillhelpcreatepositiveimpactthroughoptimisedloadsanduseofspacetoreducethenumberofrequiredjourneys.Governmentmustnowensurecriticalinfrastructureisavailablesobusinessescangofurtherandfastertosecurelogisticsnetworksthatenableallbusinessestorethinkdeliverysolutionsandsatisfycustomerneeds.Thiswillboostconfidenceintheshifttowardszeroemissionvehiclesinautomotiveandelsewhere.Fromapeopleandcommunityperspectivethecompanyischampioningequity,diversityandinclusion,aswellasskillsandtalentdevelopment.Apublic’25by25’commitmentwillensurethatatleastaquarterofitsentireworkforceismadeupofwomenbytheendof2025.Thecreationofanewinternaltaskforce–PAVE(PeopleAddingValueEverywhere)–willsupportthiseffortandthewiderED&Iagendabyexploringculturalchallengesandchampioningchangeacrossthebusiness,includingtraining,peersupport,andmentorship.TheyarealsotranslatinglearningsfromthewiderindustryandactivepatronsoftheAutomotive30%Club,whosepurposeistoachieveabettergenderbalancewithintheautomotiveindustry.Astrongaftermarketcanalsohelpmorepeoplemaketheswitchbygrowingcapabilitiescoveringnewpowertrainsandbatteryhealthwhichwillfosteraresilientsecondhandmarket,andstrengthenthesecondandthirdlifeopportunitiesforelectricvehiclesandbatteries.Theriseofnewtechnologiesandsoftwarealsodemandsnewskillstokeepdriversontheroad.Forexample,customersarenowbeingtrainedtorepairnewsystemsandequipmentsuchasAdvanceddriverassistancesystems(ADAS)systems–whichareincreasinglycommonandalreadyonaroundhalfofallvehicles–sothatadvancementsfromindustryarewell-supportedinthemarketplace.GovernmentwillplayamajorfacilitativeroleinsettingtheconditionstoallowbusinesseslikeLKQEuroCarPartstoprosperthroughgoodregulatoryframeworks–fromMOTcycles,torighttorepair,andevolvingbatteryregulationstotheskillsagenda–tokeeptheUKonthemove.ThiswillhelptoensuretheexistingandfuturecarandvanparcissupportedacrossallvehicletechnologiesonthejourneytoNetZero,andbuildabrighterfutureforall.Outstandinglegalexpertisewww.shoosmiths.comCHAPTER121THESOCIETYOFMOTORMANUFACTURERSANDTRADERSTHESOCIETYOFMOTORMANUFACTURERSANDTRADERSLIMITED71GreatPeterStreet,London,SW1P2BNTel:+44(0)2072357000E-mail:communications@smmt.co.uk@SMMTSMMTwww.smmt.co.ukSMMT,the‘S’symbolandthe‘Drivingthemotorindustry’brandlineareregisteredtrademarksofSMMTLtdDisclaimerThispublicationcontainsgeneralinformationand,althoughSMMTendeavourstoensurethatthecontentisaccurateandup-to-dateatthedateofpublication,norepresentationorwarranty,expressorimplied,ismadeastoitsaccuracyorcompletenessandthereforetheinformationinthispublicationshouldn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