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Automobile Industry (9 major imperatives (Rising complexity encourages…
Automobile Industry
9 major imperatives
The price-cost gap narrows
Rising complexity encourages more platforming
OEMs should consider ways to cooperate with other OEMs and how to engance platform usage across segments - could component outsourcing solve this?
The aftersales in China become more important
Growth continues to shift - to emerging markets
Connentivity becomes more important
Retail of the future comes closer
Suppliers add more value
The OEMs battle intensifies
Number of cost pressures
capacity expansion in EM
new technologies linked to emissions controls
developoment of electric car
increase in technology and amenities in the car
Raw materials
Labor force - Unions
Determinants of Automotive Demand
changes in real personal disposable income
House price changes
Unemployment rate/employment
consumer confidence
Manufacturers
Premium and luxury Vehicles - Higher margin
prestige
functionality
status
Mass market - Lower margin
Companies in portolio
BMW
Renault - Nissan - Mitsubishi
Components
Companies in portolio
MGI Coutier - Akwel
Combustion components
Leoni AG
Wires and straps
Aperam
Steel products
No pricing power.
High Value added components as Continental
Low value added components as Faurecia
Flexibility and adaptibility by improving logistics (as Inditex)
Tyres
Companies in portolio
Michelin
Premium tyres
Duopoly - Michelin and Pirelli
Higher margins
Complex product with high value added
Pricing power
Homologation involves testing and certification
the importance of brands
High capital intensity (high Capex)
Competitive landscape
No pricing power
Increased functionality expeted by consumer unable to raise selling prices.
Capital Intensive and highly cyclical
Sales Power/Force
Brand building process
Sales and marketing
Distribution network