Carmaking Close to the Customer: the European Fightback

SUNDERLAND, England, February 17 -- The fightback of Europe as a cost-effective centre for car production was set out by OEMs and their suppliers at last week's International Automotive Conference in the UK. Speakers including executives from Ford, Nissan and Jaguar Land Rover emphasised that the whole cost, including lengthy supply chains, the uncertain stability of suppliers and the link between development and production, must be considered. These factors mean that European carmaking, while tough, can remain successful.

The 10th International Automotive Conference, held at the Radission SAS hotel in Durham, UK from February 10 - 12, 2009, was applauded by delegates and speakers alike for its focus on European manufacturing.

Organised in partnership with Sunderland City Council, supported by local carmaker Nissan and sponsored by TRW amongst others, the event brought together professionals and experts from 14 countries to meet their counterparts within the global automotive industry.

The conference featured carmakers, Tier suppliers and logistics providers and centered on the strengths of the UK and Western Europe as a development, manufacturing and supplier region - particularly relevant in these difficult times when carmaking facilities and their supply chains need to build and deliver vehicles close to their customer base with greater efficiency and lower cost.

Simon Carter, Deputy Director for the BERR Automotive Unit at the UK Department of Business, started the discussions by outlining the government's commitment to the sector and alluded to investment in new, 'green vehicle' technology: "We are guaranteeing GBP1 billion to support GBP1.3 billion of bank lending to the industry; we need to prepare for the future - but not just prop up old technology and facilities and like the European Investment Bank, we are targeting 'low carbon' investment."

Julian Hetherington of Jaguar Land Rover spoke of how manufacturing in and exporting from the UK to its customers in 160 countries benefits from the excellent existing plants and infrastructure and how the "close connectivity between product and process development at JLR will help us reach our target of cleaner, greener vehicles sooner rather than later."

There's no doubt that carmakers are under severe pressure but, said Nissan International's Geoff Smith: "There are new priorities to address and speed in addressing them is of the essence. The survivors will be those that manage the cash and sweat the existing assets, and their new priorities should achieve a 'total delivered cost'."

And, as many at the conference pointed out, it has to be achieved in the greenest way possible. Production, expenditure and the movement of parts and cars needs to be adjusted to the market and the planet, and if it's done properly it can bring savings for everyone involved.

The long-held priority of speed to market was challenged by Wallenius Wilhelmsen Logistics's Melanie Moore. Achieving that speed means burning more fuel and time saving had to be balanced with environmental concerns.

Collaboration and supply chain lengths were part of other lively discussions in the logistics sessions, with John Buchanan of Ford and DHL Exel's Paul Dyer debating how responsibilities could be shared and efficiencies gained by both car makers and logistics providers through more 'macro vision' of the process.

What the IAC revealed was that the automotive industry is now looking at the radical change in its market as an opportunity to implement new efficiencies. And though some frankly admitted that at the moment it was hard to see the light at the end of the tunnel, it was Julian Hetherington who summed up the challenge ahead.

"It's never been more true to realise that how you manage the downward part of the cycle will determine how effectively, and indeed whether, you come out at the other end," he said.

After the conference sessions, the delegates had the opportunity to take an extensive tour of Nissan's award-winning Sunderland plant and to visit local suppliers TRW and Calsonic Kansei.

In its 10th year, the International Automotive Conference is organised by Ultima Media in partnership with the Sunderland City Council with sponsorship from TRW, Tyne and Wear Development Company, DHL Exel Supply Chain, Flanders Investment and Trade agency, Profil, SEMTA and the Investment and Trade Development Agency of Hungary.

The conference is backed by Automotive Logistics and Automotive Manufacturing Solutions, the leading global business magazines in their sectors.

Notes to Editors:

IAC http://www.iacsunderland.com is sponsored by the Sunderland City Council through its Business Investment Office and organised on their behalf by Ultima Media, a B2B publisher specialising in the global international automotive market. Ultima has magazines circulating worldwide and organises automotive conferences in locations including Russia, China and India, as well as Europe and the US. http://www.ultimamedia.com

Press information: contact Simon Duval Smith, Conference Director at +44-208-987-0955 simon.duvalsmith@ultimamedia.com; Ultima Media Ltd, Lamb House, Church Street, London W4 2PD, tel +44(0)208-987-0900 fax +44(0)208-987-0948