european automotive survey 2013 eng
TRANSCRIPT
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European Automotive
Survey 2013Survey results
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Structure of the study
Survey of 300 companies active in the Europeanautomotive industry (15% OEMs, 85% suppliers)
Phone interviews conducted by an independentmarket research institute in January 2013(Valid Research, Bielefeld).
Country
Germany 75
France 60
Italy 30
Spain 30
United Kingdom 30
Russia 15
Austria 10
Czech Republic 10
Slovakia 10
Poland 10
Portugal 10
Hungary 10
Ernst & YoungFebruary 2013 Page 2
Peter FuPartner/German Public Auditor/German Tax AdvisorSenior Advisory Partner Automotive GSA
Ernst & Young GmbH
WirtschaftsprfungsgesellschaftMergenthalerallee 3-565760 Eschborn
Phone: + 49 (6196) 996 [email protected]
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Current and future business situation
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111
31
12
45
411
38
14
33
47
17
16
56
412
41
14
29
OEMs significantly more satisfied than suppliers
German automotive industry doing good business
How would you assess your current business situation?*
Europes auto industry managers are satisfied for the most part with their current business situation.
In Europe, OEMs are on average more satisfied than suppliers: 56% of OEMs are completely satisfied with theircurrent situation; the corresponding figure for suppliers is only 29%.
February 2013 Ernst & YoungPage 4
Germany Europe OEMs Suppliers
*All results in percentGood Fairly good Fairly poorMedium Poor
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45
30
30
33
35
33
12
20
18
7
13
15
14
31
44
47
36
24
44
37
11
3
2
17
50
4
12
1
3
3
7
13
2
4
Germany
UK
France
Spain
Italy
Eastern Europe
Western Europe
Italys automobile industry is in a deep crisis
How would you assess your current business situation?*
February 2013 Ernst & YoungPage 5
Good Medium
Eastern European companiesare significantly more satisfiedwith their current businesssituation than westernEuropean companies.
In Germany, the UK andFrance respondents reportabove-average satisfaction.
The majority of companies inItaly report a poor businesssituation (63%).
*All results in percent
Respondents from European countries:
Fairly good Fairly poor Poor
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Mainly optimistic projections
4
12
22
11
25
64
60
65
79
65
32
28
13
8
10
2
Italy
Spain
UK
Germany
France
How will your companys business situation develop over the next six months?
Auto industry managers in eastern Europe, France, Germany and the UK in particular look to the future withoptimism. In Italy, by contrast, every third respondent anticipates a deterioration in their own business situation.
Significantly improve Slightly improve Significantly deteriorateSlightly deteriorate
15
17
70
75
14
81
Western Europe
Eastern Europe
10
68
21
1
All respondents
February 2013 Ernst & YoungPage 6
*All results in percent
Respondents from European countries:
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43
32
18
12
16
8
7
3
40
43
45
49
34
35
35
12
13
19
31
32
41
42
39
42
4
6
5
6
9
17
16
35
1
1
8
China
India
Rest of Asia
Russia
South America
North America
Eastern Europe
Western Europe
...but a further decline in sales is expected in
western Europe
How will global passenger vehicle sales develop in the next 12 monthsin the following regions?*
Significantly increase (more than 5%) Slightly increase (up to 5%)
Slightly decrease (down no more than 5%)
Remain roughly the same
Significantly decrease (down more than 5%)
Auto industry managers expectsales to increase in Asia inparticular.
A further decrease is forecastfor western Europe. Only 15%of respondents expect salesfigures to increase.
Respondents in Germanyexpect the western Europeanmarket to decrease by 3%.
February 2013 Ernst & YoungPage 7
*All results in percent
+4%
+3%
+2%
+2%
+2%
+1%
+1%
-1%
3
8
Respondents from European countries:
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Growth only in the lowest and highest price
segments
What shor t- and medium-term prospects do you foresee for thenew passenger vehicle market?*
Stagnation Decline
Growth in small cars segment: 52% of respondents expect healthy growth rates in low-price segment.
No consensus on luxury cars segment: indeed, 34% expect strong growth in this segment, while a 29% forecaststagnation or even declining sales figures.
52
20
34
38
28
48
37
43
20
32
29
19
Low-price segment (up to EUR 15,000)
Mid-price segment (up to EUR 30,000)
Upper price segment (up to EUR 50,000)
Premium/luxury segment
February 2013 Ernst & YoungPage 8
Growth *All results in percent
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The companies strategic and operational planning
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8 7
6555
2738
15 11
5351
32 38
Despite the crisis: production capacity also to
increase in Europe
Do you expect to increase or decrease your production capacity in the coming year?*
Despite the crisis, the European companies polled intend to increase more often than reduce production capacity,not only worldwide but also in Europe.
German companies are more cautious when it comes to increasing capacity in Europe.
February 2013 Ernst & YoungPage 10
All respondents German companies
in Europe in Europeworldwide worldwide
Remain unchanged DecreaseIncrease *All results in percent
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7
32
8
8
2
19
14
52
47
27
25
13
42
30
UK
Spanien
Deutschland
Frankreich
Italien
Osteuropa
Westeuropa
Production in Europe: OEMs are considerably more
cautious than suppliers
February 2013 Page 11 Ernst & Young
Do you expect to increase or decrease your production capacity in Europe in thecoming year?*
One in three Spanish companies intends to reduce production capacity throughout Europe in 2013 by contrast, avery small percentage of British, German and French companies intend to reduce capacity.
42% of companies plan to step up investment in eastern Europe; in western Europe, the corresponding figure isonly 30%.
15 15
6851
1734
Remain unchanged DecreaseIncrease
OEMs SuppliersRespondents from European countries:
*All results in percent
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1911
6161
2028
11 10
6760
2230
German companies intend to continue creating
jobs...
How will employment in your company develop over the next six months?
Considerably more European companies in the automobile industry intend to create jobs (28%) than to cut them(11%). In Europe, by contrast, employment is likely to stagnate at best: one in five companies intends to createjobs, and the same number plan to reduce headcount.
February 2013 Ernst & YoungPage 12
in Europe in Europeworldwide worldwide
Remain unchanged DecreaseIncrease
All respondents German companies
*All results in percent
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25
11
11
12
37
19
17
30
25
22
17
7
26
18
Spain
UK
Germany
France
Italy
Eastern Europe
Western Europe
...but in Europe the labor market is stagnating
February 2013 Page 13 Ernst & Young
How will employment in your company in Europe develop in the coming year?*
Alarm signals for Italy: In Europe, only 7% of the Italian companies polled intend to create jobs; by contrast, morethan a third (37%) intend to cut jobs.
Eastern European companies are more optimistic in their HR policy than western European companies.
17 19
66 61
17 20
Remain unchanged DecreaseIncrease
OEMs Suppliers
*All results in percent
Respondents from European countries:
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Companies opt for greater flexibil ity
Are you currently p lanning to step up one or moreof the follow ing measures aimed at raising flexibili ty?*
21
12
17
12
26
28
21
18
Are being implemented Are planned
February 2013 Ernst & YoungPage 14
In view of the uncertain economic development, companies are taking various measures geared to increasingflexibility and efficiency. The most common measures implemented or planned are flexible working time models(47%); external providers are also increasingly being integrated (40%).
Flexible working timemodels
(e.g. phased retirement).
Concentration ofproduction locations and
administrative units
Establishment ofShared Services Centers
Integration of externalproviders
"Implemented" and "planned"
OEMs Suppliers
Working timemodels
34 49
Integration ofexternal providers
46 39
Concentration ofproductionlocations
43 37
Shared ServicesCenter
33 29
47
40
38
30
*All results in percent
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Business models and product ranges under
scrutiny
Strategic realignment: are you currently p lanningone or more of the following measures?
33
31
27
19
17
11
39
37
33
35
31
22
February 2013 Ernst & YoungPage 15
In order to make themselves crisis-proof, 72% of the companies polled are reviewing whether their businessmodels are future-proof and two thirds are giving their product range a complete makeover.
Acquisitions for cost or strategic reasons are on the agenda at half of the companies.
Check whether businessmodels are future-proof
Restrict non-strategicactivities
Acquisitions in order toincrease cost synergies
Revision of product range
Strategic acquisitions
Divestments
72
68
60
54
48
33
"Implemented" and "planned"
OEMs Suppliers
Business models 68 73
Product range 74 67
Restrict non-strategic activities
50 61
Acquisitions (costsynergies)
52 55
Strategicacquisitions
46 49
Divestments 25 34
Are being implemented Are planned *All results in percent
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OEMs in particular are increasingly backing
research and development
How will your companys investments in research and development develop in thecoming year?*
33
60
7
Ernst & YoungFebruary 2013 Page 16
Despite rising cost pressure, most companies do not intend to save on research.One in three intends to increase its R&D spend; only 7% intend to decrease these investments.
In Germany, the companies are more willing to invest: 40% intend to increase their R&D spend.
40
58
2
Decrease Decrease
Constant Constant
Increase Increase
Increase Decrease
OEMs 41 5
Suppliers 32 7
All respondents German companies
*All results in percent
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Focus on optimizing processes
Are you planning to increasingly st reamline processes
in the following business units?
33
30
31
29
33
30
37
38
36
38
32
28
February 2013 Ernst & YoungPage 17
In the coming year, the companies intend to streamline structures in procurement in particular (70%).
More than two thirds of the companies are also looking at personnel development, production and marketing inorder to increase efficiency.
Purchasing
Production
Marketing/sponsorship/events
Personnel development
Sales
Administration
70
68
67
67
65
58
"Implemented" and "planned"
OEMs Suppliers
Purchasing 68 70
Personneldevelopment
68 68
Production 68 67
Marketing/events/sponsorship
71 65
Sales 73 63
Administration 68 55
Are being implemented Are planned *All results in percent
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Attractiveness of automotive sites
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21
13
9
7
6
5
3
2
0
-2
-3
-3
-4
-8
-9
-11
-12
-21
South Korea
Brazil
Sweden
USA
Japan
India
China
Germany
Slovakia
Czech Republic
Hungary
Turkey
Russia
Poland
Italy
UK
Spain
France
Difference 2011-2013 in percentage points
Top countries: innovation power
February 2013 Page 20 Ernst & Young
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2
1
4
3
3
3
5
6
7
4
6
10
13
13
19
19
28
51
17
20
22
23
23
24
27
28
29
31
34
34
35
47
42
43
44
37
Turkey
Hungary
India
Poland
Russia
Slovakia
China
Spain
Brazil
Czech Republic
Italy
France
UK
USA
South Korea
Sweden
Japan
Germany
In your opinion, how competitive are the following automotive hubs w ith respect to
product quality?*
Top countries: product quality
February 2013 Page 21 Ernst & Young
*All results in percent Very competitive Fairly competitive
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5
5
5
6
4
5
6
8
3
5
8
6
7
11
10
8
34
40
13
13
15
16
21
23
22
21
34
35
37
45
49
46
51
54
35
31
UK
Italy
France
Sweden
Spain
USA
Japan
Germany
Russia
Turkey
South Korea
Brazil
Poland
Hungary
Slovakia
Czech Republic
India
China
In your opinion, how competitive are the following automotive hubs w ith respect to
manufacturing costs at present?*
Top countries: manufacturing costs
February 2013 Page 23 Ernst & Young
*All results in percent Very competitive Fairly competitive
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27
26
25
22
19
17
14
6
2
0
-6
-7
-10
-15
-18
-18
-19
-21
Slovakia
China
India
Czech Republic
Hungary
Poland
Brazil
South Korea
Turkey
Russia
Sweden
USA
Spain
Italy
Japan
Germany
France
UK
Difference 2011-2013 in percentage points
Top countries: manufacturing costs
February 2013 Page 24 Ernst & Young
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3
6
4
4
4
3
5
8
11
5
8
8
12
16
25
20
21
30
23
22
25
26
27
29
31
31
29
36
36
38
38
35
36
46
45
44
Spain
Italy
Turkey
Russia
Hungary
Slovakia
Poland
UK
Sweden
Czech Republic
France
Brazil
USA
India
China
South Korea
Japan
Germany
Top countries: productivity
In your opinion, how competitive are the following automotive hubs w ith respect to
productivity?*
February 2013 Page 25 Ernst & Young
*All results in percent Very competitive Fairly competitive
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26
15
13
9
7
7
7
6
2
1
1
1
0
-2
-3
-7
-7
-15
South Korea
Brazil
India
China
Czech Republic
Japan
Germany
Poland
USA
Slovakia
Hungary
Turkey
Sweden
UK
Russia
Italy
France
Spain
Difference 2011-2013 in percentage points
Top countries: productivity
February 2013 Page 26 Ernst & Young
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