Guide to Economic Development in the Global Auto Industry - S8

The UK's boost in r&d incentives
is helping Ford develop a plug-in
hybrid.

U.K.

The British shift to
research incentives

F

ord, Jaguar Land Rover and U.K. supplier
GKN are all beneficiaries of a British
investment fund that aims to keep the country's
e-mobility development industry on the boil
and position the country as the go-to place for
European automotive r&d - even as it cuts ties
with the European Union.

The Advanced Propulsion Centre (APC)
started in 2013 with the aim of dispersing £1
billion ($1.3 billion) of government funding
to collaborative projects that focus on zeroemission propulsion technology.
In April, APC announced its 10th round of
funding, inviting applications from groups to
bid for £30 million ($40 million) of r&d cash.
The money goes to the lead participant of a
collaborative group. And under the rules of the
program, the consortium that bids for the funds
must include a small to medium-sized U.K.
business with the aim of giving them a leg up.
The group also must prove that the cash will
expand r&d activities specifically in the U.K.
Ford last year won £4.7 million ($6.3 million)
to help develop a plug-in hybrid version of its
Transit Custom van. It bid with its consortium
partners Prodrive, an engineering firm better
known for successes running the global
Subaru rally team, and Revolve Technologies,
originally set up in the U.K. by Detroit's Roush
Technologies before being sold off.
After Ford developed the gasoline-electric
van at its Dunton, U.K., commercial vehicle
r&d center, Prodrive then built 20 prototypes to
test with fleets, mainly in London. Ford plans
to put the vehicle into production next year.

THE CHALLENGE
The APC is just one part of the U.K.'s
ongoing investment in high-tech automotive
technologies. Earlier this year the government
announced a deal worth about $738 million
to accelerate the development of electric
vehicles. That program includes the Faraday
Battery Challenge, a competition to award
money to companies or projects working to
improve automotive battery cells or packs.
As part of that initiative, the government
committed £80 million ($107 million) to
build the National Battery Manufacturing
Development Facility, to be built near
Coventry, in central England, the cradle of
Britain's car and bicycle industry.
In the past, the U.K.'s auto incentives were
mostly channeled through the Regional
Growth Fund, which gave money to
companies expanding in areas identified as
worthy of financial investment. Recipients
included Geely's taxi firm, the London Electric
Vehicle Company, which received government
funds to help build a new factory in Coventry.
But that regional growth money has stopped,
as U.K. government shifts its efforts to spur
more development in e-mobility solutions.

- nick gibbs

GERMANY
SAXONY'S DRAW

Germany's
invitation is to
under-developed
corners

G

ermany's
multi-year
strategy
of
encouraging projects to invest in its
less developed regions continues to fan
economic development in the auto industry.
Last year, China's Beijing WKW Automotive
Parts Co. announced it would build a $1.2
billion electric-car factory in Saxony, next
to the Polish border, north of Goerlitz.
Government officials readily approved
incentives to help fund the project, but early
this year, Beijing WKW cancelled its plan.
Officials say they are still receiving interest
from other automotive companies in the area.
Germany provides a sliding scale of cash
incentives to encourage businesses to invest
in regions around the country. In general,
the closer an industrial site is to Germany's
eastern border with Poland, the greater the

8

E C O N O M I C D E V E L O P M E N T G U I D E / J U LY 2 0 1 8

AUTO INDUSTRY
EMPLOYMENT:

95,000

SHARE OF 2017
ECONOMIC ACTIVITY:

German government leaders joined Daimler
executives to kick off the current expansion of
Daimler's Kamenz plant in Saxony.

27 PERCENT

allowance for investment incentives.
This region, particularly to the south
in Saxony, has attracted such high-tech
investment as Daimler's Kamenz batterypack plant near Dresden. Last year, Daimler
announced a further investment there of 500
million euros ($586 million) to build a second
plant there making lithium-ion battery packs.
The new plant will double the number of
employees at the site to 1,000.
Volkswagen announced a major infusion
in its factory in Zwickau, Saxony, close to the

Polish and Czech borders, converting the
plant to build electric cars, starting with the
ID compact late next year.
Borbet, a supplier of alloy wheels, last year
opened a new plant in Goerlitz, Saxony, just
four miles from the Polish border and right
in the highest incentive zone. Germany's
so-called GRW cash grants will pay up to 40
percent of a project's investment cost, up to
750,000 euros, according to the German Trade
and Invest organization.

- nick gibbs



Table of Contents for the Digital Edition of Guide to Economic Development in the Global Auto Industry

Guide to Economic Development in the Global Auto Industry - Intro
Guide to Economic Development in the Global Auto Industry - S1
Guide to Economic Development in the Global Auto Industry - S2
Guide to Economic Development in the Global Auto Industry - S3
Guide to Economic Development in the Global Auto Industry - S4
Guide to Economic Development in the Global Auto Industry - S5
Guide to Economic Development in the Global Auto Industry - S6
Guide to Economic Development in the Global Auto Industry - S7
Guide to Economic Development in the Global Auto Industry - S8
Guide to Economic Development in the Global Auto Industry - S9
Guide to Economic Development in the Global Auto Industry - S10
Guide to Economic Development in the Global Auto Industry - S11
Guide to Economic Development in the Global Auto Industry - S12
Guide to Economic Development in the Global Auto Industry - S13
Guide to Economic Development in the Global Auto Industry - S14
Guide to Economic Development in the Global Auto Industry - S15
Guide to Economic Development in the Global Auto Industry - S16
Guide to Economic Development in the Global Auto Industry - S17
Guide to Economic Development in the Global Auto Industry - S18
Guide to Economic Development in the Global Auto Industry - S19
Guide to Economic Development in the Global Auto Industry - S20
Guide to Economic Development in the Global Auto Industry - S21
Guide to Economic Development in the Global Auto Industry - S22
Guide to Economic Development in the Global Auto Industry - S23
Guide to Economic Development in the Global Auto Industry - S24
Guide to Economic Development in the Global Auto Industry - S25
Guide to Economic Development in the Global Auto Industry - S26
Guide to Economic Development in the Global Auto Industry - S27
Guide to Economic Development in the Global Auto Industry - S28
Guide to Economic Development in the Global Auto Industry - S29
Guide to Economic Development in the Global Auto Industry - S30
Guide to Economic Development in the Global Auto Industry - S31
Guide to Economic Development in the Global Auto Industry - S32
Guide to Economic Development in the Global Auto Industry - S33
Guide to Economic Development in the Global Auto Industry - S34
Guide to Economic Development in the Global Auto Industry - S35
Guide to Economic Development in the Global Auto Industry - S36
Guide to Economic Development in the Global Auto Industry - S37
Guide to Economic Development in the Global Auto Industry - S38
Guide to Economic Development in the Global Auto Industry - S39
Guide to Economic Development in the Global Auto Industry - S40
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