Leonardo Ezcurra Supply Executive Manager Volkswagen Argentina · 2012. 10. 29. · 1 Growth market...
Transcript of Leonardo Ezcurra Supply Executive Manager Volkswagen Argentina · 2012. 10. 29. · 1 Growth market...
Volkswagen Argentina - Multisectoral Mission for Investments -
Leonardo Ezcurra
Supply Executive Manager Volkswagen Argentina
Hamburg, June 2011
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Table of contents
1. The Volkswagen Group
1.1 The strategy 2018
1.2 The global deliveries from 2009 to 2018
2. Volkswagen South America – Sites production and deliveries to customers of VWB & VWA
2.1 Product range and its segmentation
3. Volkswagen Argentina
3.1 Car plant PACHECO and Gearbox plant CORDOBA
3.2 Volkswagen Argentina – Ranking automotive industry
3.3 The development of Volkswagen Argentina
3.4 The nationalization strategy
4. Examples of business opportunities in Argentina
5. Analyse of the automotive supplier industry
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1. The Volkswagen Group
� One of the world´s leading automobile manufacturers and the largest carmaker in
Europe
� 11.4% of Car – marketshare
� 7.400 Mio produced units
� 126,9 billion euros of sales revenues
� 10 brands from 7 European countries:(Volkswagen, Audi, SEAT, Skoda, Volkswagen Nutzfahrzeuge,
Bentley, Lamborghini, Scania and Porsche)
� 64 production plants in: 15 European countries and a further 7 countries in the Americas, Asia and Africa
� Nearly 400.000 employees worldwide
Top
employerVolkswagen Group profit
before tax margin ≥ 8%
Leading in customer
satisfaction and quality
Volumes
≥ 10 million units p.a.²
1 Growth market focus
- Increased market penetration
- Emerging markets expansion
- Balanced global footprint
2 Modular toolkit strategy
- Reduction in investment,
development and unit costs
- Scale and efficiency effects
- Increased production flexibility
- Reduced time to market
3 Capital discipline
- 16% Rol target in automotive business
- 20% RoE goal in
Financial Services
- Around 6% automotive capex in PPE/sales
4 Operating profit measures
- Strong cost control
- Process/product optimization
- Regional scale effects
6 Potential upside
- Product portfolio extention
- North American expansion and market recovery
- Commercial vehicle strategy and market recovery
- Financial Services: strengthen the automotive value chain
5 Synergy potential
- Leveraging best practices across the
Group
- Purchasing, production, and distribution benefits
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Diversified Economic Exposure:
Attractive Mix of developed and emerging markets
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1.2 Volkswagen Group – Deliveries to customers by market (in Tsd. units)
VW Group - Worldwide
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Brazil
Argentina
+9.9%
+4.4%
+31.1%
2. Volkswagen South America – Sites production & deliveries to customers
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Utility
VW
BV
WA
A00 A0
2.1 Volkswagen Brazil & Volkswagen Argentina
A Pick up
DRAFT
Anchieta Plant
27.444/year
Anchieta Plant
114.533/year
Curitiba Plant
17.783/year
Pacheco Plant
55.000/year
Pacheco Plant
95.000/year
Anchieta Plant
538.588/year
Curitiba Plant
173.152/year
Anchieta Plant
30.894/year
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Building area: 194.599 m2 Employees: 4.711 total Capacity: 540 units per day
3.1 Volkswagen Argentina - Car plant PACHECO
Car production: estimated increase of 192% from 2000 to 2015
44.492
88.875
25.730
2000 2005 2010 2015
54 %
Amarok
46%
Suran
63 %
Amarok
37%
Suran
156.700
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3.1 Volkswagen Argentina - Gearbox plant CORDOBA
Building area: 77.910 m2 Employees: 1.713 total Capacity: 3.540 units per day
68 %
MQ200
32%
MQ250
65 %
MQ200
35%
MQ250
Gearbox production: estimated increase of 242% from 2000 to 2015
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3.2 VW Argentina – Ranking automotive industry
Sales to dealers FC2011 (700.000 units)Production FC2011 (700.000 units)
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Investments developments (EUR Mio.)
���� The total average investment in the last 4 years was 228 Mio. €
���� A quarter of the total investments was planned for purchasing
���� Between 1995 and 2010 the number of employeesincreased 148%.
The development of VW Argentina
Employees development
3.3 The development of Volkswagen Argentina
Nearly 60 Mio. EUR
invested for
purchasing issues
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Total Material CostSuran
Argentina
GermanyBrazil
Total Material CostMQ200 & MQ250
Argentina
GermanyBrazil
Total Material CostAmarok
Argentina
GermanyBrazil
3.4 Nationalization strategy – material content current situation
Despite a high local-regional material content, there are many localization opportunities
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Global SuppliersTOTAL
Nu
mb
er
of
su
pp
lier
Tu
rno
ver
su
pp
liers
Local Suppliers
100 %(1.203 Mio. EURO)
140
71 %(854 Mio. EURO)
29 %(349 Mio. EURO)
73
67
Ca. 70% of turnover managed by global suppliers
3.4 Nationalization strategy - suppliers cluster per origin
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Gearshift
commandIndustry overview
5000
1000 700V W FIA T PSA
Business opportunity
Gearbox shifting
tower
4. Examples of business opportunities
� Hi-tech components must
be localized with high added
value
� VW main user of these
components/technology
� Other OEM´s producing
gearboxes locally:
FIAT and PSA Group
� Great possibilities of
creating an alliance:
Merger & Acquisition,
Joint Ventures, technological
agreements, licences, etc.)
Technology
Technology
� Fine blanking
� Precision machining
� Laser welding
� High precision assembly
� Fine blanking
� High precision assembly
� Cinematic control
Gearboxes production
(quantities in JDP FC2013)
DRAFT
Annual volume in 2013:
VW: 1,4 Mio
Fiat: 0,24 Mio
PSA: 0,17 Mio
TOTAL PRODUCTION: 1,8 Mio
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Tires Industry overview
VW Business Volume Automotive industry
Business opportunity
Seats
componentsIndustry overview Business opportunity
� Installation rate of leather
seatings growing for
local/export markets
� High potential for developing
local raw material
� IR Suran: 5%
� IR Amarok: 28%
4. Examples of business opportunities
� Suppliers spectrum: 2
international players + 1 local
company
� 3 OEM´s producing pick ups
for all markets
� Possibility of creating a
successful product
diversification strategy
Technology
Technology
� Metallic structure
� Foaming
� Textil, leather (eco-leather
and natural covers)
� Black and green tires
�Winter tires (only export)
� Normal and all-terrain (AT)
�Size range from 13´´ to 19´´
(automobile and pick ups) 615.000
4.250.000
Tires/year
DRAFT
VW Product
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Steering wheel Industry overview
VW Business Volume Automotive industry
Business opportunity
Rubber
componentsIndustry overview Business opportunity
� 1 international player for
sealings
� No international companies
for hoses in ARG
� Small companies producing
spare parts
(low Q degree and technology)
4. Examples of business opportunities
� Suppliers spectrum: 1 local
company (low tech) without
current business for all
markets
� 100% imported for all OEM´s
- Sealings:
- Hoses:
Technology
� Mg structure
�With and without airbag module
� Leather finishing and plastic
Sealings Hoses
123.000
850.000
parts/year
DRAFT
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5. Analyse of the automotive supplier industry
Potential Entrants:
- Great potential for cooperations with small
already existing companies
- Adequate industrial base
- High educated workforce
- Well-developed infrastructure
Industry Rivalry:
No competitors � market gap
- Missing know-how
- Lack of technical capacities
Threats of substitutes:
-Low threats of substitues because of the
global design and specific products with
high technical requirements
Just for Companies with high KNOW-HOW
Supplier Power:
- Good business environment with
suppliers within MERCOSUR
- Good development of regional
sources (mining, energy, oil, etc.)
- Large range of raw materials (steel,
plastic, alloyed materials, etc.)
Buyer Power:
- Great number of automotive
companies in MERCOSUR
- SAM markets with a high growing
potential
Attractive business environment + good business opportunities
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Thank you very much
for your attention