Automotive 09

10
Automotive 09 DOWNSIDE ADJUSTMENT IN 2nd HALF OF 2009 Michael Klemen European Markets August 2009

description

Automotive 09 9 slides to understand 2009 ... Shifting gears to manage a downturn…

Transcript of Automotive 09

Page 1: Automotive 09

Automotive 09 DOWNSIDE ADJUSTMENT IN 2nd HALF OF 2009 Michael Klemen European Markets August 2009

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European automotive markets 2 HY 2009

Summary

• Western European markets are mature while Eastern European countries are still -but much slower-emerging

• In general activities needed to regain profitability•Rethinking of structural expenses and costs

• Western European production cost structures need to decrease eg VW uses twice as many employees as Toyota to generate the same unit of turnover

•Reduce material costs / content costs of vehicle

•Consumers go for cheaper “interior” - hardly any add ons

• Technology is increasingly key, inside vehicle and inside the business “

•We're going from seeing the car as mechanical device with electronic enablers to an electronics device with mechanical enablers." .. tech has become a hook for driving new car sales

• US Dynamics have already heavily influenced WE and this will continue for rest of 2009

• Safe Intelligent Mobility, Green in cars will add to cost side (dynamics of concepts like project Better Place (wants to install around 250,000 charging ports, 200 battery-exchange stations and a control center in the Bay Area by 2012) will appear also in WE on the longer run)

• There is no swift improvement in the outlook for the global automobile industry. 2009 will be another difficult year for most auto markets around the world.

• Automotive factories in Europe are halting and reducing inventory, many luxury car markets in Europe are depressed even though some niches (small cars, cheap cars) start to show some small comeback

• Unexpected adaptions like FIAT/Chysler, MAGNA/OPEL, PorscheVW… more to come ?

• European OEMs still dominate the market but have to face decreasing vehicle sales, while a new level of global interdependence fosters that Asian, Chinese, Indian brands gain more importance

• Car industry suffers from Overproduction: European OEMs stagnated over last few years, while only Asian OEMs increased production in Europe

• Sales fall out in nearly all Truck/Bus areas forces no invest policy in the segment

• Germany is still the largest vehicle production country in Europe with a production output of 6 million vehicles; however its output per employee is the lowest

European automotive overview

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Market downside adjustment

Source: PwC Automotive Institute

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Country Vertical 1 Vertical 2 2008 2009 20102008

Growth2009

Growth2010

Growth2008-2010

CAGR

GermanyAgriculture, Mining and Construction Mining 14 13 14 3,8% -2,3% 3,3% 2,1%Agriculture, Mining and Construction Total 14 13 14 3,8% -2,3% 3,3% 2,1%

Discrete Manufacturing Computer and Electronic Products 3.707 3.609 3.663 7,5% -2,7% 1,5% 1,9%

Industrial and Electrical Equipment 5.703 5.532 5.595 7,2% -3,0% 1,1% 1,5%

Medical Equipment and Supplies 997 966 976 7,1% -3,1% 1,0% 1,5%Other Discrete Manufacturing 3.989 3.867 3.909 7,1% -3,1% 1,1% 1,5%Transportation Equipment 4.645 4.505 4.556 7,1% -3,0% 1,1% 1,5%

Discrete Manufacturing Total 19.040 18.478 18.698 7,2% -3,0% 1,2% 1,6%Process Manufacturing Chemical, Plastics, Rubber 789 767 777 6,4% -2,8% 1,2% 1,4%

Consumables 2.910 2.825 2.858 6,3% -2,9% 1,1% 1,3%Metal, Wood, Minerals, Paper, Publishing 846 821 830 6,2% -2,9% 1,1% 1,3%Petroleum and Coal 588 571 577 6,3% -2,9% 1,2% 1,3%Pharmaceutical and Medicine 961 932 943 6,2% -2,9% 1,1% 1,3%Textiles and Apparel 311 302 305 6,3% -2,9% 1,1% 1,3%

Process Manufacturing Total 6.405 6.218 6.290 6,3% -2,9% 1,2% 1,3%Utilities Electric and Gas 5.445 5.543 5.888 11,5% 1,8% 6,2% 6,1%Utilities Total 5.445 5.543 5.888 11,5% 1,8% 6,2% 6,1%

Germany Total 30.903 30.253 30.890 7,7% -2,1% 2,1% 2,4%

German Industrial IT investment data 2008-10 (source Gartner)

Business demand for

technology-enabled capabilities

continues.

The majority of executives clearly understand the

critical role of business technology in their success.

Eager to infuse innovation into their

operations, these executives often bypass

internal IT functions when selecting

technology suppliers — because they

perceive IT as not being particularly

effective and innovative…

Vertical analysis of a global

survey of 520 IT decision

makers in Feb 2009

Enterprise IT budget changes in

2008 compared with forecasted changes in

2009

Total enterprise expenditure is unlikely to

decrease significantly

Datamonitor April 09

Presenter
Presentation Notes
This data shows that there will be a moderate growth in the IT investment in industrial customers during the period 2008-12. This will be in addition to the increasing deployment of ethernet into industrial networks.
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Customer Dealer Fleet Car Rental Wholesalers

Creating impact with technology Hot Automotive Areas Today

Product

Definition

Market

OfferingWholesale

Stock Replenishment

Orders

Stock

Inventory

Dealer Sales

Analysis

Delivery Model

CenterAllocation

Capacity

Planning

Operating

Plan

Material

Forecast

Constraints

Management

ProcurementMaterial

Mgmt

Material

releasing

Build

Production

LLP

Late Configuration

Added Value

Services

2nd Hand Car Refur-

bishmen

OUTBOUND

LOGISTICS

Configure Order

Processing

Sales Scheduling

Order Bank

Mfg Scheduling

Order Bank

Marketing

Analysis

Dealer Sales

Analysis

Delivery

Model Center

LLP

Consolidation Warehouse

Added Value

Services

Line Side Inventory Magmt

INBOUND LOGISTICS

Private Mp Portals Tier 1 Tier 2 Tier 3Marketplaces Portals

CRM / ATP

Stock InventoryLead

Management

MANUFACTURING

OP

EX

–E

BIT

-R

ethi

nk s

truct

ural

cos

ts

-Red

uce

mat

eria

l cos

ts, c

onte

nt c

osts

of

veh

icle

Customer Relationship Management & Available to promise

Demand Planning / Demand & Supply Matching

Inbound LogisticsManufacturing Plant

OptimizationOutbound Logistic

Hot today :

Faster new Model Developments

Collaborative PLM

Technology increasingly key inside vehicles and inside the business

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Customer

Order

Suppliers

Production Suppliers

Cooperation Development

Suppliers

Creating impact with technology The Automotive Production Template

Body & ChassisPress linesBody shop

Body-in-White

Shop Floor PROP

Pre Production

Chassis

Pre

Production

Bodyparts

PreProduction

Exterior/Interi or Drive

Train

Assembly

Delivery

ERPAPO

most likely SAP or ORACLE

Manufacturing Execution System

PAINT SHOP

Electro Coating Drying

Varnishing

MAIN ASSEMBLY

Engine, Drive Train, Transmission FINAL

ASSEMBLY

Interior

ExteriorBuf

fer

Buf

fer

Buf

fer

Buf

fer

Buf

fer

Buf

fer

Buf

fer

Buf

fer

Logistics Flow

Messaging/Alert Flow

SAP xMII Shop Floor

Shop Floor

SAP MII(?)

Shop Floor

Final LayoutOrder

TestEngine

SAP / ORACLEWLAN LAN WANSeconds Minutes

Batch

IE3000 WLAN microsecInside the cell

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Creating impact with technology The switch from traditional IT to new mindsets

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But Look at the Bright Side of Life !

201y - 201z

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