With 1.5 million vehicles and 2.5 million engines produced each year, the automotive industry is a leading sector in the UK economy, and Delphi Automotive a key member of its supply chain. The manufacturer boasts an annual turnover of £9.8 ($16.5) billion, and its subsidiary company, Delphi Diesel Systems, is a key supplier of diesel common rail systems to global vehicle and engine manufacturers. The Delphi group has played a large role in automotive’s recent success story.
Delphi is also a notable employer in the UK, operating seven sites (among them two technical centres: Gillingham in Medway, Kent and Park Royal, London) and employing 3,500 employees of which 650 are engineers and technicians. Delphi sites in the UK currently employ over 80 apprentices.
The Medway area ranks amongst the most deprived areas in the UK, with education and skills the most widespread factor. In an area where 13,800 are unemployed and 35,800 experience income deprivation, Delphi’s presence is strongly felt. (State of Medway Report January 2012)
“The contribution of the AMSCI funding is a key investment to develop advanced Common Rail system technologies for commercial vehicle engines that will help OEMs meet evolving legislative requirements. The funding will contribute to Delphi continuing to lead development of Diesel systems for commercial vehicles”
Steve Gregory, Heavy Duty product Line Executive,
Delphi Diesel Systems
With tighter requirements on fuel consumption and CO2 emissions brought about by legislation and industry competitiveness, OEMs have recently looked to their suppliers for solutions. In a highly competitive automotive market, it is vital for companies like Delphi to invest in developing new technologies.
Delphi bid for, and won, funding from the Department of Business, Innovation and Skills’ (BIS) Advance Manufacturing Supply Chain Initiative (AMSCI) to develop new diesel technologies for commercial vehicles.
The aim of AMSCI is to improve competitiveness, increase supply chain performance and create and safeguard jobs by supporting R&D, capital investment and skills development. The automotive supply chain will receive a total of £45.5 million AMSCI funding, with the programme overseen by the Automotive Council and Dr Chris Owen, Chief Executive Officer of SMMT Industry Forum. It is the largest ever automotive supply chain development programme in the UK.
Delphi benefits from AMSCI
- £4.1 million funding to help develop new common rail technology
- Help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs
- Global competitiveness ensured
AMSCI projects will kick-start much larger private sector investment across the whole supply chain. With better supply chain competitiveness, the percentage of the parts budget spent in the UK will increase and global supply chains will become more concentrated in the UK, setting output and jobs on an upward track.
Delphi Diesel Systems was awarded £4.1 million AMSCI funding to develop the next generation of its common rail technology. The project started in May 2013 and will run for three years. It will yield components that meet OEMs’ needs for commercial vehicle engines targeted for production from 2018 onwards.
“By increasing supply chain international competitiveness, capacity and capability, AMSCI will increase the sourcing by OEMs and Tier-ones with UK SMEs and will also create the opportunity for suppliers to win new customers in new sectors and increase export-led growth. This economic Funding from the programme will also support SME access to finance issues and provide a combined investment in skills, R&D and CAPEX to address the identified SME market failures. Without this programme of work the essential improvements to be achieved will be lost forever for many supply chain companies.”
Chris Owen, Chief Executive Officer,
SMMT Industry Forum Ltd
The funding will be used in the development stage of the project which will help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs.
The AMSCI funding will also support training and skills improvements. The Delphi investment in this project will exceed the awarded AMSCI funding.
Delphi’s project has already received interest from several global OEMs.
- Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of technologies for the automotive and commercial vehicle markets. Headquartered in Gillingham, England, Delphi operates major technical centres, manufacturing sites and customer support services in 32 countries, with regional headquarters in Bascharage, Luxembourg; Sao Paulo, Brazil; Shanghai, China and Troy; Michigan, U.S. Delphi delivers innovation for the real world with technologies that make cars and trucks safer as well as more powerful, efficient and connected. Visit www.delphi.com
- Employs 3,500 personnel across the UK, 870 in Gillingham, Medway
- Annual turnover of £9.8 ($16.5) billion in 2013
- Delphi Diesel Systems, a key supplier of diesel common rail systems to global vehicle and engine manufacturers
- The Automotive Council provides an advisory and consultative forum for government and the automotive industry in the UK, to ensure a sustained high level conversation with the industry, and to put in place a long-term strategic framework for its development
- Secretary of State for Business, Innovation and Skills Vince Cable launched the Advanced Manufacturing Supply Chain Initiative (AMSCI) in 2011. AMSCI provides funding across manufacturing to support research and development, skills training and capital investment to improve the UK’s advanced manufacturing supply chains global competitiveness and encourage major new suppliers to locate in the UK.
If you would like to know how AMSCI funding could benefit your organisation please contact Mike Scull at SMMT Industry Forum on 0121 717 6600