Automotive: further readings
Roland Berger operates offices at key bases in Japan, the United States and Europe. At many of these locations we conduct numerous consulting projects with automakers and parts suppliers, wide ranging trend studies to project conditions five to 10 years down the road and other efforts to compile cutting edge know-how in the automobile field.
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Automotive inSIGHTS 3/2011
The issue centers on a wholesale fitness program for European and national sales companies, describing a tailored approach on how to flank the exploitation of additional sales potential.
In addition to the cover story, we have an exclusive interview with Paul Philpott, COO of Kia Motors Europe. He gives us insights into Kia‘s rapid change over the past few years, the latest developments and changing organizational structures. Our look around the world focuses on Brazil and Turkey – two quickly developing growth markets.
Besides, our current issue also gives you insights into the following highlights:
• Strategic Alliances: It takes two to win – a survey on success factors
• The Rare Earth Challenge: How to react and what the expectations for the future are
• Construction equipment market: Capturing growth markets in BRIC and beyond.
Automotive_inSIGHTS_3_2011
Automotive inSIGHTS 2/2011
In this issue of Automotive inSIGHTS, we take a look at the supplier industry and the growing Asia region. And even though the IAA in Frankfurt focused on cars this year, it's still worth taking a look at the commercial vehicles industry.
The highlights include:
• Chinese appetite: Emerging market players are buying into the European auto supplier industry
• Study: Truck Transportation 2030 – Crucial developments in the industry
• Engineering efficiency for suppliers: Automotive suppliers must optimize their engineering approach to cope with the challenges ahead
In addition to these main features, we also have an exclusive interview with Dr. Michael Roesnick, CEO of Preh GmbH. We talked with him about the strategic challenges Preh GmbH is facing – particularly in light of the rising importance of the Chinese sales market.
Automotive_inSIGHTS_2_2011
Is Brazil a car paradise? 2011
The demand for cars is exploding. And the market is known for being dynamic. It offers enormous opportunities. But buyers are demanding more. The auto industry must adapt. But how?
Once the world's biggest debtor and close to bankruptcy in 2002, Brazil has long been a growth driver of the global economy together with Russia, India and China (BRIC).
With rising prosperity, more and more Brazilians want individual mobility – and are buying more and better cars. The car symbolizes a step up in society – so the demand for cool design and visible extras is rising. Established premium OEMs benefit from the rising purchasing power, as do producers of the latest hip low-price models and innovative suppliers who encourage customers to upgrade their vehicles. For Chinese and Indian OEMs, Brazil is another territory to be conquered in their global campaigns – by the end of this decade, they could achieve a market share of around 10%.
According to calculations by Roland Berger Strategy Consultants, car sales in Brazil could double between 2010 and 2020 to 6.6 million vehicles; production may rise by 3.6 million cars (2010) to 5.5 million. As early as 2015, Brazil could overtake Japan to become the world's third largest car market after China and the US. Growth of 8% per year in commercial vehicles between now and 2018 is also possible.
Brazil_a_car_paradise
Global Automotive Supplier Study 2011
The worldwide automotive supplier industry is currently booming with average profit margins of 6.2% – higher even than their pre-crisis levels. However, financial performance of suppliers differs heavily depending on headquarter region, company size and product focus.
European suppliers achieved an EBITmargin of almost 7%, while North American and Japanese suppliers remain below global average. Small and medium-sized suppliers have significantly improved their profitability compared to pre-crisis levels Chassis focused suppliers achieved the highest profitability, while Interior and Electric suppliers remain below average.
Besides keeping profitability at a high level and ensuring real global delivery capability, suppliers need to put an even stronger focus on product innovation. Only suppliers who can differentiate themselves from competition via superior product functionality will be able to sustainably achieve EBIT margins in the range of 6% and above. Most other suppliers will get further pushed into the commodity corner, where their profit will be locked-in at a 3-4% level.
Read more in our "Global Automotive Supplier Study 2011".
Global_Automotive_Supplier_Study_2011
Chinese appetite – Emerging market players are buying into the European auto supplier industry 2011
Strategic investors from China are looking specifically for Western companies that can help them improve their own technological competitiveness. These are the findings of the study "Chinese appetite – Emerging market players are buying into the European auto supplier industry".
Although some 350 car suppliers worldwide filed for bankruptcy during the car industry crisis of 2008 and 2009, the industry has seen little consolidation. The market is now shifting into higher gear mainly thanks to Chinese investors, who are no longer interested only in buying hard-hit companies cheaply.
Chinese_appetite
Automotive inSIGHTS 1/2011
The automotive industry has recovered quickly, so now is a good time to look a little further down the road. Accordingly, this issue of Automotive inSIGHTS centers on the automotive world in 2025.
Our recent study "Automotive Landscape 2025 – Opportunities and challenges ahead" identifies five megatrends that, in the coming years, will likely trigger the most far-reaching upheavals in the history of the industry. Drawing on the findings of the study, we spell out the ten greatest challenges and opportunities that lie ahead.
In relation to the same study, Michael Dinter, Partner at AS&P – Albert Speer & Partner GmbH, explains how these ten key implications for the auto industry will impact his work as a traffic and urban development planner.
The current issue also gives you insights into our "Young Mobility Survey 2011: Challenges and opportunities". Unlike the Automotive Landscape 2025 study, which focuses on the future, the Young Mobility Survey 2011 concentrates on the here and now. It investigates the extent to which the expected change in mobility patterns is already discernible today.
Scenario planning, a vital tool with which to forecast potential consequences for existing product portfolios, is likewise featured in this edition of Automotive inSIGHTS.
We wish you inSIGHTFUL reading!
http://www.rolandberger.com/expertise/publications/2011-06-20-rbsc-pub-Automotive_inSIGHTS_1_2011.html
How automotive companies successfully coordinate their activities across borders
This study focuses on the coordination of international development, production and marketing activities – core functions in which automotive managers have repeatedly identified room for improvement.
Many automotive companies have expanded beyond the borders of their home markets. Some, however, have paid too little attention to coordinating the resultant decentralized activities; and that is the reason why today's automotive managers acknowledge a significant need for action in this regard.
The present study, which comprises 95 automotive companies, investigates how firms successfully coordinate their activities across borders.
Six coordination mechanisms were studied: (1) centralization/decentralization of decision-making; (2) direct personal supervision; (3) bureaucratic coordination; (4) output coordination; (5) socialization and networks; and (6) informal communication.
In view of the findings of our study, we especially advocate the greater use of socialization and networks to successfully coordinate cross-border activities in the automotive industry. Suppliers and manufacturers should focus on establishing a corporate culture that connects the various units of a company, and on promoting networks to foster nonhierarchic information sharing between them.
Since not all companies are yet taking advantage of these mechanisms, the study closes with a presentation of several tools and actions that are appropriate to strengthen coordination by leveraging socialization and networks.
http://www.rolandberger.com/expertise/publications/2011-05-05-rbsc-pub-Automotive_activities_across_borders.html
Automotive landscape 2025
Five megatrends, geopolitical change, changing demographics, sustainability, the evolution of mobility as well as changing technology, will cause a huge leap forward in the development of the automotive industry within the next 15 years. This will lead to ten key findings, published in the "Automotive landscape 2025" study conducted by Roland Berger Strategy Consultants. Almost all the 39 Roland Berger offices around the world were involved. The consultants spoke to more than 60 leading experts from the automotive industry and other related organizations worldwide. Roland Berger conducted the interviews in partnership with Amrop, a leading executive search company.
As a result of our study, three scenarios were identified - based on the expected megatrends: Each scenario depicts the world in 2025 in an extreme way.
1. The High-tech scenario foresees a wide array of car features allowing drivers to stay connected to their network while driving, use the internet and personalize the Man-Machine-Interface.
2. The Budget scenario describes a world in which the purchasing power of customers is strongly reduced due to taxes and inflation combined with low income growth. Cars are less affordable and the money spent on cars is in competition with other spending.
3. The Sustainability scenario describes a world in which consumer behavior is strongly influenced by regulations, legislation and tax, but at the same time by rating recommendations.
Whichever scenario will come true: the key is for companies to remain open and flexible. "Companies have to face now the opportunities and challenges to make the journey ahead a rewarding one", states Bernhart.
http://www.rolandberger.com/expertise/publications/2011-02-28-rbsc-pub-Automotive_landscape_2025.html
Reinventing mobility
We need to think not in terms of products, but electric mobility solutions.
In an editorial for the French business magazine "Challenges", our Partner Max Blanchet predicts that electric cars will only take off if they reinvent mobility.
Since the financial crisis, electric cars have become the latest craze in the media and among politicians, as if they were a miracle cure for all the sector's problems: saving Heuliez, reducing CO2 emissions, creating start-up opportunities (Better Place, etc.) or bringing on new players (Bolloré, BYD), reviving demand, etc. They have even been the subject of industrial espionage! This loud enthusiasm does at least have the advantage that it has put the subject back on the table
http://www.rolandberger.com/news/2011-01-27-rbsc-news-Reinventing_mobility.html
What changed in 2010?... What's next in 2011?
According to the Roland Berger analysis, private vehicle sales in China will exceed 18 million units by 2015, but growth rates will decline substantially.
The major drivers of future private vehicle market development are rapid GDP growth and rising disposable income. Although China's economy is still expected to grow considerably over the next few years, it will be faced with several significant challenges such as currency appreciation, unsustainable stimulus plans, tighter monetary policy, unemployment and rising labor costs.
There are three main areas of focus for Western automotive suppliers: accurate volume planning, the impact of localization and revisited business models
http://www.rolandberger.com/expertise/publications/2010-12-22-rbsc-pub-Chinese_automotive_market.html
Automotive inSIGHTS 2/2010
In the latest issue of Automotive inSIGHTS, we take a close look at the topic of mobility. We analyzed a wide variety of approaches to developing mobility concepts and share the results with you. In an exclusive interview with Erich Sixt, CEO of Sixt AG, we discussed the specifics of innovative mobility concepts.
This issue also provides you with a preview of our upcoming study "Automotive industry 2025 – How will the automotive landscape change?". The study examines megatrends and their impact on key markets, technologies, business models and the related HR strategies in the automotive industry.
http://www.rolandberger.com/expertise/publications/2010-12-20-rbsc-pub-Automotive_inSIGHTS_2_2010.html
PEV Readiness Study - Electric Vehicles in America
America is on the verge of a tipping point in its transportation paradigm. Electric vehicles are evolving from an uncertain experiment to an increasing relevant modality for the future.
The debate around plug-in electric vehicles (PEVs) has long revolved around technology, costs, charging stations, and consumer acceptance. For many years, PEVs seemed to be a distant scenario, but recently, rapid advancements in technology (especially batteries) have been achieved thanks to massive investment by industry and governments. Now, PEVs have become a reality and attention is shifting from technology viability and pilots to resolving infrastructure, incentives, education, and overall readiness issues.
Roland Berger Strategy Consultants and Rocky Mountain Institute's Project Get Ready have endeavored to identify which cities in America are currently readiest for PEVs, which are making progress to develop the necessary eco-systems in the near future, and which need to accelerate to accommodate the imminent launch of electric vehicles. Based on a combination of research and city stakeholder interviews conducted from January through August 2010, we have assessed America's top 50 metro areas in terms of their readiness. We considered key framework elements (barriers, enablers, accelerators), evaluating factors from regulatory requirements, incentives, public charging, permitting and planning to power reliability, payback, education, consumer behavior, and the weather.
As the situation related to PEVs is extremely dynamic, and since our analysis is based on a mix of objective and subjective criteria, we understand that our findings should be considered indicative. Nonetheless, we hope our work will inform readers about critical topics, including where cities should focus their readiness efforts, the best practices from leading cities, and where e-mobility will likely thrive over the next few years. A summary of our findings can be downloaded free of charge.
http://www.rolandberger.com/expertise/publications/2010-10-14-rbsc-pub-PEV_Readiness_Study_Electric_Vehicles_in_America.html
Global automotive supplier study 2010
In line with the recovery of global car production, revenues in the global automotive supplier industry are almost back to pre-crisis levels. Suppliers' EBIT margins will even reach an all-time high of approx. 6% in 2010 - Profit recovery is particularly strong at European and North American suppliers.
Rising factor costs and especially severe price pressure from car makers will lead to shrinking margins in 2011 and beyond. At the same time, the global supplier industry needs to refinance the substantial amount of around EUR 130 billion until 2015.
The crisis did not lead to real consolidation of most of the problematic segments – therefore, a large group of structurally weak underperformers (approx. 20% of the global supply base) will be the first to fail when volumes drop again.
http://www.rolandberger.com/expertise/publications/2010-09-24-rbsc-pub-global_automotive_supplier_study.html
VISTA – New growth opportunities for the commercial vehicle industry
The commercial vehicles industry is undergoing one of the most fundamental changes in its history. The traditional focus on the triad (North America, Europe, and Japan) is vanishing. New markets and production locations have emerged, especially in the BRIC countries (Brazil, Russia, India and China). While the BRIC markets will continue to play a dominant role, a second wave of emerging markets is already forming: VISTA (Vietnam, Indonesia, South Africa, Turkey and Argentina).
"The large, growing VISTA economies will impact global market shares and become attractive production locations for OEMs and suppliers alike," states Norbert Dressler, Partner and commercial vehicle expert at Roland Berger Strategy Consultants.
The future development and attractiveness of these second-wave emerging markets is driven by two essential factors. First, booming and large economies are spurring the demand for vehicles. Second, low labor costs and favorable production conditions will make these markets attractive low-cost production locations for the next decades.
http://www.rolandberger.com/expertise/publications/2010-09-23-rbsc-pub-New_growth_opportunities_for_commercial_vehicles.html
Automotive inSIGHTS 1/2010
Truck markets are showing signs of recovery from the drastic effects of the economic crisis. Players in hard-hit triad markets also returned to profitability in the second quarter of this year. Commercial vehicle OEMs now need to align their strategies appropriately. If they do so, they stand to benefit from the expected recovery in these markets and the continued growth in emerging markets such as China, and will be able to seize new market opportunities.
New challenges lie ahead for players in the commercial vehicle industry – fuel effi¬ciency is likely to be a major issue, alongside CO2 emission reduction targets for commercial vehicles. Another is the rise of emerging-market OEMs with ever-better product standards, who represent a future threat even to triad OEMs on their home turf.
This special edition of Automotive InSIGHTS focuses on the commercial vehicle industry's return to growth. We also have an exclusive interview with Matthias Wissmann, President of VDA (German Association of the Automotive Industry), about the gradual recovery of the commercial vehicle industry.
http://www.rolandberger.com/expertise/publications/2010-09-17-rbsc-pub-Automotive_inSIGHTS_special_1_2010.html
Electric Vehicles – Voice of the Customer
Please see the blow link.http://www.rolandberger.com/expertise/publications/2010-05-02-rbsc-pub-Electric_vehicles_Voice_of_the_Customer.html
Truck Powertrain 2020
Please see the blow link.http://www.rolandberger.com/expertise/publications/2010-06-07-rbsc-pub-Truck_Powertrain_2020.html
Win with the winners - Future profit pools in the global automotive component market
Please see the blow link.
http://www.rolandberger.com/expertise/publications/2010-04-30-rbsc-pub-Win_with_the_winners.html
The Brazilian automotive industry at crossroads
Please see the blow link.
http://www.rolandberger.com/expertise/publications/2010-04-22-rbsc-pub-Brazilian_automotive_industry_at_crossroads.html
Automotive inSIGHTS
Please see the blow link.
http://www.rolandberger.com/expertise/publications/2010-04-23-rbsc-pub-Automotive_inSIGHTS_1_2010.html
Powertrain 2020; Li-Ion batteries – the next bubble ahead?
Please see the below link
http://www.rolandberger.com/expertise/publications/2010-02-22-rbsc-pub-Powertrain_2020_Li_Ion_batteries.html
Handbrake on – Slow progress over consolidation in the automotive supplier industry
Please see the below link
http://www.rolandberger.com/expertise/publications/2010-01-28-rbsc-pub-Handbrake_on.html
Powertrain 2020 – The Future Drives Electric (Sep 2009)
Please see the below link
http://www.rolandberger.com/expertise/publications/2009-09-15-rbsc-pub-Powertrain_2020_The_Future_Drives_Electric.html
How suppliers can master the auto crisis (Sep 2009)
Please see the below link
http://www.rolandberger.com/expertise/publications/2009-09-14-rbsc-pub-How_suppliers_can_master_the_auto_crisis.html
Automotive Inslights (Sep 2009)
Please see the below link
http://www.rolandberger.com/expertise/publications/2009-09-29-rbsc-pub-Automotive_inSIGHTS_2_2009.html
Automotive inSIGHTS special 01/2009: Automotive Innovation made in BRIC(May 2009)
Please see the below link.
http://www.rolandberger.com/expertise/publications/2009-05-19-rbsc-pub-Automotive_inSIGHTS_special_01_2009.html
Powertrain 2020 China's ambition to become market leader in E-Vehicles(April 2009)
Please see the below link.
http://www.rolandberger.com/media/pdf/Roland_Berger_Powertrain_China_20090512.pdf
Roland Berger Strategy Consultants and TNS Infratest on hybrid and electric cars as customers see them(March 2009)
The automotive industry is investing massively in research and development into these alternative power systems but customers are still not aware. Roland Berger Strategy Consultants and TNS Infratest asked more than a thousand customers in three European markets. From the result we see that more people are prepared to pay more for eco-cars.
Manufacturers need to invest in marketing now
Among the consumers, Toyota and Honda are regarded as the most active makes who are investing on new technology. The only way to succeed is to be innovative, give customers what they need and make them aware you're doing so
http://www.rolandberger.com/company/press/releases/Survey_on_hybrid_and_electric_cars.html
Roland Berger Strategy Consultants and TNS Infratest on hybrid and electric cars as customers see them(March 2009)
The automotive industry is investing massively in research and development into these alternative power systems but customers are still not aware. Roland Berger Strategy Consultants and TNS Infratest asked more than a thousand customers in three European markets. From the result we see that more people are prepared to pay more for eco-cars.
Manufacturers need to invest in marketing now
Among the consumers, Toyota and Honda are regarded as the most active makes who are investing on new technology. The only way to succeed is to be innovative, give customers what they need and make them aware you're doing so.
http://www.rolandberger.com/company/press/releases/Survey_on_hybrid_and_electric_cars.html
Global Automotive Supplier Study Supplier industry is facing the biggest crisis ever (March 2009)
Please see the below link.
http://www.rolandberger.com/news/2009-03-03-rbsc-news-Supplier.html
Automotive suppliers procurement study (February 2008)
Please see the below link.
http://www.rolandberger.com/expertise/industries/automotive/2008-02-10-rbsc-pub-ACC_suppliers_procurement_study.html
