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Automotive 09


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Automotive 09 …

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

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  • 1. Automotive 09 DOWNSIDE ADJUSTMENT IN 2nd HALF OF 2009 Michael Klemen European Markets August 2009
  • 2. European automotive markets 2 HY 2009 Summary European automotive overview • Western European markets are mature while Eastern • There is no swift improvement in the outlook for the global European countries are still -but much slower-emerging automobile industry. 2009 will be another difficult year for most auto markets around the world. • In general activities needed to regain profitability • Automotive factories in Europe are halting and reducing •Rethinking of structural expenses and costs inventory, many luxury car markets in Europe are • Western European production cost structures need to depressed even though some niches (small cars, cheap decrease eg VW uses twice as many employees as Toyota cars) start to show some small comeback to generate the same unit of turnover • Unexpected adaptions like FIAT/Chysler, MAGNA/OPEL, •Reduce material costs / content costs of PorscheVW… more to come ? vehicle • European OEMs still dominate the market but have to •Consumers go for cheaper “interior” - hardly any add ons face decreasing vehicle sales, while a new level of global • Technology is increasingly key, inside vehicle and interdependence fosters that Asian, Chinese, Indian inside the business “ brands gain more importance •We're going from seeing the car as mechanical device with • Car industry suffers from Overproduction: European electronic enablers to an electronics device with mechanical OEMs stagnated over last few years, while only Asian enablers." .. tech has become a hook for driving new car sales OEMs increased production in Europe • US Dynamics have already heavily influenced WE and • Sales fall out in nearly all Truck/Bus areas forces no invest this will continue for rest of 2009 policy in the segment • Safe Intelligent Mobility, Green in cars will add to cost • Germany is still the largest vehicle production country in side (dynamics of concepts like project Better Place (wants to install Europe with a production output of 6 million vehicles; around 250,000 charging ports, 200 battery-exchange stations and a control however its output per employee is the lowest center in the Bay Area by 2012) will appear also in WE on the longer run) 9/8/2009
  • 3. Market downside adjustment Source: PwC Automotive Institute 9/8/2009
  • 4. German Industrial IT investment data 2008-10 (source Gartner) 2008 2009 2010 2008-2010 Country Vertical 1 Vertical 2 2008 2009 2010 Growth Growth Growth CAGR Agriculture, Mining and r ss demand fo pabilities Germany Construction Mining 14 13 14 3,8% -2,3% 3,3% 2,1% B usineAgriculture, Mining and led ca nology-enab Construction Total 14 13 14 3,8% -2,3% 3,3% 2,1% tech l is of -2,7%loba1,5% ag 3.609 rtical analys continues. Discrete Manufacturing Computer and Electronic Products 3.707 Ve 3.663 7,5% IT decision 1,9% erstand the of executive s clearly und eir success. Industrial and Electrical Equipment th 5.703 su 5.532 rvey of 5207,2% 5.595 -3,0% 1,1% 1,5% The majority business technology in critical ro le of b rs in Fe7,1%2009 their Medical Equipment and Supplies 966 ake 976 m ovation into 997 -3,1% 1,0% 1,5% Eager to infuse inn ecuOthers oftenManufacturing tive Discrete bypass 3.989 3.867 3.909 7,1% changes in 1,1% es -3,1% 1,5% these ex 4.505 terprise IT budget ng in 1,5% operations, ctions whTransportationnEquipment en selecti g 4.645 En 4.556 7,1% red with fo recasted cha -3,0% 1,1% internal IT fun because the y 2008 compa gy suppliers — articularly Discrete Manufacturing Total 19.040 18.478 09 18.698 7,2% -3,0% 1,2% 1,6% technoloManufacturingbeing p Process IT as not 20 -2,8% is un1,2%ly to ive Chemical, Plastics, Rubber 789 767 777 6,4% like 1,4% perce in novative… Consumables 2.910 2.825 exp diture 2.858rprise 6,3% en -2,9% 1,1% 1,3% effective and Total ente nificantly decrease sig Metal, Wood, Minerals, Paper, Publishing 846 821 830 6,2% -2,9% 1,1% 1,3% Petroleum and Coal 588 571 577 or 6,3% 9 April 0 -2,9% 1,2% 1,3% Pharmaceutical and Medicine 961 932Datamonit 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% 9/8/2009
  • 5. 9/8/2009
  • 6. Creating impact with technology Hot Automotive Areas Today - Reduce material costs, content costs Customer Dealer Fleet Car Rental Wholesalers CRM / ATP Customer Relationship Management & Hot today : OPEX – EBIT - Rethink structural costs Available to promise Configure Order Sales Scheduling Mfg Scheduling Marketing Demand Planning / Demand & Supply Processing Order Bank Order Bank Analysis Technology Matching increasingly Dealer Sales Delivery Lead key inside Stock Inventory Analysis Model Center Management vehicles and inside the of vehicle business INBOUND MANUFACTURING OUTBOUND LOGISTICS LOGISTICS Product Market Stock Wholesale Replenishment LLP Definition Offering Orders LLP Faster new Inbound Logistics Model ManufacturingDealer Sales Stock Plant Delivery Model Developments Consolidation Optimization Inventory Center Allocation Late Warehouse Analysis Configuration Outbound Logistic Collaborative PLM Capacity Operating Material Constraints Added Value Added Value Planning Plan Forecast Management Services Services Line Side Material Material Build 2nd Hand Car Inventory Procurement Refur- Mgmt releasing Production Magmt bishmen Marketplaces Private Mp Portals Tier 1 Tier 2 Tier 3 Portals 9/8/2009
  • 7. Creating impact with technology The Automotive Production Template Customer Order SAP / ORACLE Suppliers WLAN LAN WAN ERP Seconds Minutes APO Batch Production Suppliers most likely Cooperation SAP or ORACLE Development Final Layout Suppliers Order Logistics Flow Manufacturing Execution System Pre Shop Floor Shop Shop SAP Shop SAP xMII Production PROP Floor Floor MII(?) Floor Chassis Body & Chassis PAINT SHOP Pre MAIN ASSEMBLY Press lines FINAL Production Body shop Electro Coating Engine, Drive Train, Transmission Delivery Drying ASSEMBLY Bodyparts Varnishing Body-in-White PreProduction Exterior/Interi Drive Buffer Buffer Buffer Buffer Buffer Buffer Buffer Buffer or Interior Engine Train Test Exterior Assembly Messaging/Alert Flow IE3000 WLAN microsec Inside the cell 9/8/2009
  • 8. Creating impact with technology The switch from traditional IT to new mindsets 9/8/2009
  • 9. But Look at the Bright Side of Life ! 201y - 201z +x% 9/8/2009 Cisco Confidential Copyright © 2009 Cisco Systems, Inc. All rights reserved. Internet Business Solutions Group 4