This document discusses strategies for competing in the automotive industry. It emphasizes developing a deep understanding of customers, having clear brand positioning through innovative design, and improving business operations. Brand clarity is achieved by connecting brands to cultural icons or values propositions. Japanese automakers evolved from mimicking American to forging a unique aesthetic. The document also outlines rationalizing platforms, increasing parts commonality, and leveraging digital tools to develop vehicles faster and more efficiently. The overarching question is how to generate high margins in a low-price market, and the strategic approach focuses on these consumer, brand, design, and structural business elements.

1. Emprendimiento y Diseño
6
Ejemplo
Diseño de producto
Jairo
Rodríguez
Mera
HIBtools
Herramientas

2. Emprendimiento
y Diseño

3. Jugando al margen alto en un
mercado de bajo precio

4. Current Headlines
“Business as usual is dead in Detroit”
Detroit News; 9/16/2006
“Ford to Cut 14 Plants And Up to 30,000 Jobs”
Washington Post; 1/24/2006
“Dana follows auto parts peers into bancruptcy”
Wall Street Journal; 3/6/2006
“Toyota boosts overseas output to 5M”
Associated Press; 9/17/2006
“GM to Close 12 North American Sites, Cut 30,000 Jobs”
Bloomberg; 11/21/2005
“Oil prices rise above $60 on OPEC plan”
Associated Press; 10/16/2006
“Chinese plan to import cars to US”
Associated Press; 9/1/2005

5. Middle Market Squeeze
Mercedes S-Class
BMW 7 Series
Lexus LS
BMW 5 Series
Lexus ES
Mercedes E-Class
Hyundai Centenial
Hyundai Grandeur
Mercedes C-Class
BMW 3 Series
Lexus IS
Hyundai Sonata
Mercedes B-Class
Toyota Avalon
BMW 1 Series
Hyundai Elantra
Mercedes A-Class
Toyota Camry
Hyundai Accent
Toyota Corolla

6. Market Fragmentation
Total Number of Models Offered in US Market
350
Existing Model
New Model
300
250
200
150
100
50
0
2000
2001
2002
2003
2004
2005
2006
2007E
2008E

7. Mass Customization

8. Quality Gap Diminishing
3500
Hyundai
Defects Per 1000 Vehicles
3000
2500
Range = 0.5 defects
per vehicle
DCX
Ford
GM
2000
Toyota
1500
Honda
1000
Range = 2 x defects
per vehicle
500
0
2001
2002
2003
2004
2005
2006

9. Implications
Consumers & Manufacturers







Supply > Demand
Horizontal versus Vertical Integration
Global versus Local
Consumer is King
Unprecedented Product Choice
More Educated / Informed Consumers
Extreme Pricing Pressure

10. Business Challenge
How to play a high margin
game in a low price market?

11. Strategic Approach

Consumer Insight

Brand Clarity

Design Leadership

Improve Business Structure

12. Customer Focus
1908 Touring Car
1920 Coupe
1912 Roadster
1924 Fordor Sedan
“If I had asked what my customers
wanted, they would have said a faster
horse…”
–Henry Ford
Getting at the “Un-met and Un-articulated Needs”

13. Enfoque estrategico
Brand Value & Design Leadership
Timex
Seiko
Patek Phillipe
$30
$300
$30,000
Cual de ellos da un mejor tiempo?

14. Strategic Approach
Revisit Consumer Mobility Paradigm
Utilitarian
Transportation
Mythical
Self-Expression

15. Brand Clarity

16. Brand Clarity
AN AMERICAN REVOLUTION

17. Brand Clarity

18. Brand Clarity
LET’S MOTOR.

19. Brand Clarity – Mustang Example
"The Beach Boys.
Apple pie.
The '67 Mustang.
Three things worth
fighting for".
US Navy Recruiting Ad

20. Brand Clarity – Mustang Example

21. Evolution of
Japanese Automotive Design
Japanese “American”

22. Evolution of
Japanese Automotive Design
Japanese “European”

23. Evolution of Japanese Design Ethos
West versus Japan

24. Evolution of Japanese Design Ethos
West versus Japan

25. Evolution of Japanese Design Ethos
West versus Japan

26. Evolution of Japanese Design Ethos
West versus Japan

27. Evolution of Japanese Design Ethos
West versus Japan

28. Evolution of Japanese Automotive Design
Scion XB and Nissan Cube

29. Evolution of Japanese Automotive Design
Scion T2B and Nissan Chappo

30. Evolution of American Automotive Design
“Can Do Spirit”
IMAGE HERE

31. Evolution of American Automotive Design
Super Chief Train

32. Evolution of American Automotive Design
Super Chief Truck Concept

33. Bold American Design

34. Bold American Design

35. Bold American Design

36. Bold American Design

37. Bold American Design

38. Bold American Design

39. Bold American Design

40. Improving Business Structure
Drivers
for
Change
Competitive
Environment
GPDS
Principles:
• Synchronization
• Compatibility
• Completeness
Key Enablers:
Internal
Complexity
• Platform
Rationalization
• Commonality &
Reuse
• Leverage Digital
Tools
More Products,
Faster, and More
Efficiently

41. Global Product Development System
<Start>
6 Months Opportunity
<Funding>
6 Months Opportunity
1. Common Virtual Process
1. Faster Prototype Build/Verification
2. Data/Engineering/Manufacturing
Synchronization
2. Faster Production/Prototype Tooling
3. Reuse/Commonality
<J1>

42. Platform Rationalization
Fewer Architectures with More Models
Wave 1
Mazda3
Volvo V50
2003
Ford C-Max
Ford
Focus
Wave 2
3-Door
2004
4-Door
Mazda5
5-Door
Wave 3
2005-2006
Ford Cabriolet
Wagon
Volvo C70 Convertible

43. Commonality and Re-Use

44. Leveraging Digital Tools
Theme
Development
Package
Development
Service
Digital
Producto / Proceso
Plant /
Assembly
CAD
Product
Structure
Enginieria de
producto
Digital
BOM / BOP
Functional
Simulation
Product / Process
Simulation
Virtual Build
Supplier
Integration

45. Digital Theme Development

46. Virtual Crash Simulation
CAE Prediction
Physical Test

47. Assembly Plant Virtual Simulation

48. Virtual Build and Assembly Simulation

49. Summary
How to play a high margin game in
a low price market?




Develop a Profound Understanding of
Customers
Create Clear and Distinct Brand Positioning
Achieve Design Leadership
Fix Structural Business Issues

50. BIENVENIDOS al CLUB de los que QUIEREN
CAMBIAR el MUNDO! 

51. Jairo
Rodríguez
Mera