Improving the Competitiveness of Companies in the UK Automotive Sector

Abstract

It has been recognized that there is a lack of competitiveness in the UK-based automotive supply chain and that knowledge and creativity at all levels within a company are a source of competitive advantage. It is against this background, and in light of the increasing demands placed on the automotive supply chain through globalization and over-capacity that a number of initiatives have been established with support from the UK government – including the Society of Motor Manufacturers (SMMT) Industry Forum and The Automotive College. To improve the competitiveness of companies lower down in the automotive sector supply chain it is necessary for the original equipment manufacturers (OEMs) and first-tier suppliers to lead any initiative. With this mind, a Merseyside Automotive Group (MAG) was established, chaired by Jaguar Cars with representation from other Merseyside-based automotive companies. Its activities are managed and coordinated from the Centre for Automotive Studies at Liverpool John Moores University. The model developed by the Group consists of an integrated programme with three elements: a Manufacturing Improvement Programme, which aims to transfer the best practice from the OEMs into the supply chain, an Automotive E-Community Programme in which companies can trade, share and learn, and an E-Tools for Industry Programme to raise awareness of the benefits of information and communications technology. The paper describes this integrated programme and its impacts.