The Society of Motor Manufacturers and Traders (SMMT) has launched a study to improve the finance sector’s understanding of how companies in the UK automotive supply chain operate, with the aim of creating more accessible finance options suited to their needs.
Working with the Smith Institute, the study will set out recommendations to better support business growth in the supply chain, assessing the financial relationship of UK-based OEMs to Tier 1 companies and examining the existing barriers to obtaining finance.
Supporting the work stream of the Automotive Council, the study will help to counteract the ‘hollowing out’ of the UK supply base and to encourage a wider range of finance options for businesses.
In the UK, approximately 25% of automotive companies are Tier 1 suppliers which supply direct to OEMs, with the remaining operating at Tier 2 and below level. Over 80% of all component types required for vehicle assembly can be sourced from the UK supply base, and UK-based OEMs typically spend around £7.4 billion annually on sourcing in the UK.
The report will be launched in June with events in London and the West Midlands and SMMT is calling on automotive companies to participate in an industry survey to ensure that the report fully represents their views and experiences finance in the supply chain sector.
Click through the link to participate in the survey and provide your input on this important issue.