9th JAMA-CLEPA Business Conference 22-25 May 2007 - International Congress Centre - Dresden The Role of Europe in the Strategies of Leading OEMs Christoph.

9th JAMA-CLEPA Business Conference22-25 May 2007 - International Congress Centre - Dresden

The Role of Europe in the Strategies of Leading OEMs

Christoph B. StürmerAssociate Director

Automotive Markets Division

Copyright © 2007 Global Insight, Inc. 2

Global Insight – Who we are

• Over 600 staff, 23 offices in 13 countries • Fully independent and privately owned• 43-year tradition of excellence for leadership in economic

information and forecasting• Over 3,800 client organizations around the world • Recognized as a leading forecaster in surveys by

authoritative sources such as Reuters - USA Today - The Wall Street Journal - Sunday Times - Central Bank of Sweden

• Our Misssion: “We are committed to helping our clients prepare better plans and reach more effective decisions that will make them more successful, which in turn will contribute towards improved global productivity and a better standard of living for people everywhere.”


Automotive Markets Division – What we do

Advisory Services Division. ASD serves all aspects of consulting work across all divisions. ASD also includes the Energy Markets Group and the U.S. Federal Government Group.

Automotive Markets Division. AMD serves all aspects of the automotive market, from OEM’s to component suppliers and other organizations that are part of the automotive market.

Business Intelligence Division. BID is responsible for the product development, sales and support of our Business Intelligence products to all markets around the world. The only exception is sales to financial markets.

Data Products Division. DPD serves the data needs for all of Global Insight (except for certain specialized databases, e.g., automotive, maintained by other groups) and sets the data standards for the entire company, including attribution, documentation, update and maintenance.

Financial Markets Division. FMD is responsible for our business with financial institutions, including investment banks, asset managers, commercial banks, consumer finance companies and insurance companies.

Information Technology Division. ITD is responsible for IT development and support for all of Global Insight.

ADVISORY SERVICESDIVISION

AUTOMOTIVE MARKETS DIVISION

FINANCIAL MARKETS DIVISION

BUSINESS INTELLIGENCE

DIVISION

DATA PRODUCTS

DIVISION

INFORMATION TECHNOLOGY

DIVISION


AMD Range of Products and Services

• On-road Vehicle Forecast Reports– World Light Vehicles– World Trucks – Regional Reports – OEM Perspective

• Global Forecast Databases – Global Production – Global New Sales/ Registrations– Global Parc – Production-based component, system, module supplier and

technology share databases

• Single- and multi-client dedicated research

• Strategic consulting and market research


Europe – Which Europe?

Industrial Europe

Emerging Europe

New Europe

Economic Area

Political Union

Currency Zone Cultural Area


Three Kinds of Europe

Industrial Europe• Traditional high-

tech locations• Fully Integrated

in EU, WTO, etc.• High labour cost• Abundant,

experienced workforce

• High purchasing power

• Large markets

New Europe• Historic high-

tech locations• Increasing

integration into EU, WTO, etc.

• Rising labour cost

• Abdundant, educated workforce

• Low purchasing power

• Small markets

Emerging Europe

• Selected high-tech capabilities

• Beginning integration into WTO

• Low labour cost

• Available educated workforce

• Low purchasing power

• Large potential markets


Countries of European Economic Area

Industrial Europe• Belgium• France • Luxembourg• Germany• Italy• Netherlands• Denmark• Ireland• United Kingdom• Greece• Portugal • Spain• Austria• Finland• Sweden• Switzerland• Norway

New Europe• Cyprus• Czech Rpublic• Estonia• Hungary• Latvia• Lithuania• Malta• Poland• Slovakia• Slovenia• Bulgaria• Romania

Emerging Europe

• Belarus

• Croatia

• Kazachstan

• Russia

• Turkey

• Ukraine

• Uzbekistan


Light Vehicle Sales in Europe

0

2

4

6

8

10

12

14

16

18

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Mil

lio

ns

EMERGING EUROPE INDUSTRIAL EUROPE NEW EUROPE


Light Vehicle Production in Europe

0

2

4

6

8

10

12

14

16

18

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Mil

lio

ns

EMERGING EUROPE INDUSTRIAL EUROPE NEW EUROPE


Automotive Growth 2006-2012

0 0.2 0.4 0.6 0.8 1 1.2

EMERGINGEUROPE

INDUSTRIALEUROPE

NEW EUROPE

Millions

Sales Growth Prod Growth


Global Light Vehicle Sales

0

5

10

15

20

25

30

35

40

1990 1993 1996 1999 2002 2005 2008 2011

Mil

lio

ns

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

OTHER


Global Light Vehicle Production

0

5

10

15

20

25

30

35

40

1990 1993 1996 1999 2002 2005 2008 2011

Mil

lio

ns

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA


2006 Global Footprint - World

0 5 10 15 20 25 30

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions

Sales Production


2006/2012 Growth Profile - World

0 2 4 6 8 10 12

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions



2006 Global Footprint – Premium Brands

0 1 2 3 4 5

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions

Sales Production


2006/2012 Growth Profile – Premium Brands

-0.2 0 0.2 0.4 0.6 0.8 1

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions



2006 Global Footprint – Volume Brands

0 5 10 15 20 25 30

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions

Sales Production


2006/2012 Growth Profile – Volume Brands

0 2 4 6 8 10 12

EMERGING EUROPE

INDUSTRIAL EUROPE

NEW EUROPE

AFRICA

ASIA

LATIN AMERICA

MIDDLE EAST

NORTH AMERICA

Millions



The Role of Europe – Key Findings

• Europe must be regarded as 3 different sub-regions– Industrial Europe– New Europe– Emerging Europe

• Risks and Opportunities are different in each sub-region– Market Size, purchasing power– Political environment, regulations, infrastructure– Labour cost, availability, experience/ education

• Starting points of manufacturers differ widely– Historical production build-up– Key sales markets – Brand and retail affinity


The Role of Europe – Key Recommendations

• Don‘t underestimate the staying power of „old“ Europe– Allocate ressources strategically – it‘s not all about China– Analyze absolute volume potential, not just growth rates

• Develop a detailed mutual understanding of strategy – Are you in a seller or buyer market? – How vulnerable is your business model to changes in cost

structure? – How dependent is your business model on people vs.

machines?

• Establish a living and open partnership – Don‘t rely on contacts through purchasing/sales only, but

integrate strategic planning, marketing, R&D as well – Establish high-level contacts to OEM through senior

management/ owners: be „part of the family“


European R&D Centres

GM

Ford

Mazda Toyota

DaimlerChrysler

Nissan

Renault

BMWHyundai/Kia

Honda

Fiat

VW

PSA

Mitsubishi

9th JAMA-CLEPA Business Conference22-25 May 2007 - International Congress Centre - Dresden

Enjoy the rest of the conference!

Christoph Stuermer

Associate Director, Western Europe

E-mail: [email protected]

9th JAMA-CLEPA Business Conference 22-25 May 2007 - International Congress Centre - Dresden The Role of Europe in the Strategies of Leading OEMs Christoph.

Documents

global insight

improved global productivity

role of europe

market research slide

business intelligence

energy markets group

economic information

financial institutions