By Claire West

A report out today sets out for the first time details of the manufacturing parts and products that car makers want to source from the UK, but are not currently buying here. The report identifies some of the reasons for this, where purchasing decisions are made and where the UK has the potential capability to meet this currently untapped demand.

Companies in the UK are already winning more than £7 billion of work annually from vehicle makers. But there are clear opportunities to grow this business.

Using data collected from vehicle manufacturers and supply chain companies, the report identifies the opportunities with a new purchasing wish list of interior and exterior vehicle parts from manufacturers.

The report was launched today by the Business Secretary during a visit to Jaguar Land Rover (JLR) and supply chain company International Automotive Components (IAC) in Halewood, Merseyside.

Vince Cable also welcomed today’s news that JLR’s Evoque, which starts production in July backed by a government offer of support of up to £26 million, has resulted in supply chain contracts worth £2 billion being awarded to 40 manufacturers across the UK.

In addition, JLR are creating 1,500 apprenticeship places at Halewood to build the Evoque. It is expected that the contracts announced today will generate a further 5,000 new jobs in the supply chain.

Dr Cable who also co-chairs the Automotive Council said:

“JLR’s news that it’s awarding £2 billion worth of contracts to businesses in the UK to supply components for the Evoque shows that the UK automotive supply chain is capable of winning major contracts and creating vital jobs in the UK.

“Today’s Automotive Council report shows for the first time, where the opportunities are, the parts that vehicle manufacturers want to source here in the UK if they have the choice, and where the UK has capability to supply those parts.”

The joint industry/government Automotive Council was set up to address issues such as the need to reinforce and grow the UK supply chain.

Co-chair Professor Richard Parry-Jones said:

"The automotive sector in the UK is seeing a resurgence as global vehicle manufacturers increase their investments and look to increase local sourcing.

“The supply chain is poised to benefit from these developments, but it requires a concerted and co-ordinated effort, led by the joint industry/government Automotive Council, to help realise this potential opportunity.

“The publication of this report is a key step in making this happen."

The report was compiled by Dr. Matthias Holweg, from the Judge Business School at the University of Cambridge. He said:

“This report will provide an important evidence base for both vehicle manufacturers and suppliers when assessing what parts and products to make, buy and sell.

“I was delighted to have good co-operation from the industry to produce this report for the Automotive Council and I look forward to seeing the potential opportunities for growth being realised.”