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We're no strangers to challenges in the auto industry, especially when it comes to supply chain management. We've seen it all in the US with our OEMs and Tier One suppliers, but what about across the pond in the UK?

In this episode of the Auto Supply Chain Prophets podcast, we bring in John McLellan-Grant from SMMT (Society of Motor Manufacturers and Traders) to explore SMMT’s role in shaping the future of the UK auto sector and the current state of the industry.

SMMT isn't just any trade association; it has been the backbone of the UK's automotive industry since 1902, bringing together nearly 900 members, from OEMs to raw materials suppliers. Their mission? To lead the way in industry transformation and ensure the UK stays competitive in the global auto market.

John sheds light on how they tackle issues like post-Brexit labor shortages, the shift to electric vehicles (EVs), and the race toward decarbonization. Whether it's helping companies pivot to sustainable practices or guiding them through regulatory changes, SMMT is at the heart of the UK's automotive transformation.

But it's not all smooth sailing. John talks about the growing pains in EV adoption—yes, even in the UK, where some places still struggle to offer enough petrol stations, let alone charging stations. Yet, despite the hurdles, there's progress, from the rise of Gigafactories to bold new energy initiatives aimed at future-proofing the industry.

What stands out? The importance of trust and transparency. John believes that open communication between suppliers, OEMs, and the government is key to solving problems faster and smarter. His advice to supply chain leaders? Embrace collaboration like never before—because it's the only way forward in this rapidly evolving landscape.

Themes discussed in this episode:

• The role of the Society of Motor Manufacturers and Traders (SMMT) as a key trade association in the UK automotive sector, including its membership and activities
• The current state of automotive manufacturing in the UK, highlighting British-owned manufacturers and the sector's overall health
• The industry's focus on sustainability, covering energy use, carbon reduction, and working groups promoting sustainable practices in the supply chain
• The importance of collaboration between SMMT and other organizations, like regional automotive alliances and international associations
• How the automotive industry is embracing technology for transformation, especially the shift from internal combustion engines (ICE) to electric vehicles (EVs)
• SMMT's strategy to support members with electrification challenges, supply chain diversification, and trade relationships after Brexit
• Challenges in the EV transition, including infrastructure, battery manufacturing, and the need for effective government support

Featured on this episode: 

Name: John McLellan-Grant

Title: Regional Engagement Manager, Society of Motor Manufacturers and Traders (SMMT)

About: John McLellan-Grant is the Regional Engagement Manager at the Society of Motor Manufacturers and Traders (SMMT), bringing over 20 years of experience in business development, account management, and procurement across multiple industries. His expertise lies in crafting both short- and long-term strategies that drive sales growth, enhance profitability, and streamline processes. His proven track record in high-level account management across various sectors reflects his commitment to delivering exceptional customer service and fostering meaningful client relationships.

Connect: LinkedIn

Mentioned in this episode:

• The Paris Agreement
• Northern Automotive alliance (NAA)
• North East Automotive Alliance (NEAA)
• Welsh Automotive Forum
• What Is Brexit?
• Industry Forum
• The Motor Ombudsman
• The zero-emission vehicle (ZEV) mandate
• Driving Culture Change in the Automotive Industry with Jon Husby
• Hadi Awada's Journey to Transforming Workplace Culture

Episode Highlights:

[02:00] Getting to Know SMMT: An introduction to SMMT, the UK’s leading automotive trade association, and its role in supporting the industry.

[04:32] UK Automotive Industry: SMMT is working to support the UK auto sector by advocating for an industrial strategy, addressing EV infrastructure challenges, and backing key projects like Gigafactories.

[06:27] Going Green: John explores the challenges and progress in the UK’s shift toward sustainability and decarbonization within the automotive supply chain.

[09:08] The Power of Collaboration: SMMT thrives on collaboration, connecting regional clusters, government bodies, and global automotive associations to drive industry transformation and set future standards.

[11:53] Technology and Transformation: The UK auto industry is steadily embracing the shift from ICE to EV, with manufacturers ramping up discounts and new models as they work to meet government mandates and consumer demand.

[14:30] Into the Future: SMMT’s strategy for helping the UK automotive industry navigate future challenges, including electrification and post-Brexit trade.

[15:27] Speaking of Statistics: John reveals interesting data on the UK automotive industry, focusing on clean air zones and their impact on businesses.

[17:40] Advice for Supply Chain Leaders: John’s key advice for supply chain leaders is to embrace collaboration as the cornerstone for overcoming industry challenges.

Top Quotes:

[02:16] John: “SMMT, the Society of Motor Manufacturers and Traders, is probably the largest and most influential trade association in the UK for the automotive sector.  We are, and have been, the voice of the industry since 1902. We have a membership of just under 900 members at the moment, and that ranges from all the automotive companies right the way, from OEMs down the supply chain to raw materials providers. And what we do there is help voice their views and concerns affecting the sector with local and UK government, and help with regulatory authorities, et cetera. We do a lot of events that mean we can get members together and hopefully share best practices, but obviously, help them promote their own businesses within the sector also.”

[07:35] John: “I think focusing on sustainable supply chains is what every part of the supply chain is doing at the moment. You know, that's becoming a critical priority, not just about how they're maintaining their green standards, but how the people that they're purchasing from are looking at their supply chain and going, are you giving us sustainable product? Is it politically correct? The health and well-being of workers. Things like that. That's certainly becoming a lot of stronger emphasis along the way.”

[14:48] John: “Our focus is really around that support that we can give to the network of members and supply chain around the challenges that they're all facing, which is the, you know, the electrification, the battery supply chain, the diversification of supply chain as well because we're certainly seeing a lot of that post-Brexit. You know, how we can look at working together with trade deals with Europe, for example, that's still very much on the agenda for us and talking to government and making sure that they're making certainly the right moves into Europe so that we've got the right environment that we had previously, which was virtually a zero tariff. Currently, we're still trying to thrash out the ins and outs of that.”

[18:01] John: “I think the more that companies are prepared to collaborate with the supply chain and talk to the supply chain, it just makes it 10 times easier for anything, whether that be labor issues, whether it be technical issues, whether it's carbon issues, whatever it may be. I think the more transparent and open those conversations are it can only make the job easier for everybody.”

[20:38] John: “If you look inwards to the UK and the manufacturers that are here, I think Nissan would be the obvious sort of answer to that. You know, the way that they've set up in Sunderland with the supplier park around them is absolutely perfect. They're very close to all the suppliers. They're very open and honest with them as much as they can be when it comes to it. And they're always talking to them. So, I think that's where you see a very good sort of collaborative approach with that without a doubt.”

[Transcript]

So, some of their challenges are very different. Some of them are pretty similar, and they're all sort of looking at decarbonization. How can they make sure they, you know, make sure that the plant is the most efficient, the most carbon-friendly, and green? And also, workforce, you know, since Brexit, we have seen a dip in the workforce skills as well as labor. A lot of promotion gone into apprenticeship schemes, bringing people back into the workforce, and reskilling some of the people that had left the automotive sector at some point. So, they're the main challenges that we're seeing so far, really.

So, battery manufacturer, for example, isn't covered under the current climate change agreement with the government. So that means that they can get a discounted rate on energy. However, it's very energy intensive. So, we're currently working with companies like Agratas and AESC to talk to government and how they can best support that continued production. Other than that, I think, you know, focusing on sustainable supply chains is what every part of the supply chain is doing at the moment. You know, that's becoming a critical priority, not just about how they're maintaining their green standards, but how the people that they're purchasing from are looking at their supply chain and going, are you giving us sustainable product? Is it politically correct? Is it the health and well-being of workers? Things like that. That's certainly becoming a lot of stronger emphasis along the way.