Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – 16-12-2009 Impact of the Financial Crisis on the Automotive Industry The Pound.

Similar presentations


Presentation on theme: "1 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – 16-12-2009 Impact of the Financial Crisis on the Automotive Industry The Pound."— Presentation transcript:

1 1 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – Impact of the Financial Crisis on the Automotive Industry The Pound Group BALEIZAO Frederic BRIE Helene ASSELIN DE WILLIENCOURT Loic LASSEY Wyclief MERINO VALDIVIA Daniel ORIEULX DE LA PORTE Matthieu RONVAUX Philippe

2 2 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – PLAN 1.BEFORE 1.BEFORE: Overview of the industry before the crisis 2.DURING 2.DURING: Reasons of the crisis and impact on the industry 3.THE RESCUE 3.THE RESCUE: Measures to end the crisis 4.THE FUTURE 4.THE FUTURE: Strategies and stakes of tomorrow

3 3 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – FOREWORD Interviews & sources  effzef Vef Zefe - Interview of Bernard CASIN : Gadz, président du groupe professionnel de l’automobile à la Soce - Interview of Françoise Vannobel – PSA Directrice animation projets transversaux du groupe - Conference at the IFP School “ Carrières et motorisations de demain ” - Books, magazines et web sites These references will be quoted during the presentation

4 4 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – BEFORE : Overview of the industry before the crisis Some key figures of the Automotive Industry in 2006  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE 40 % 69.3M 50M Increase of worldwide production in 15 years Number of vehicles produced  +4.2% private cars IN THE WORLD IN OCEANIA-ASIA  +60% cars since 2000  7.2 M cars in China in 2006  Toyota=1 st word constructor at the 1 st semester 2007 (for all vehicles)  better than GM  More than1M employees  Turnover > 500B€  21,4 M vehicles in 2006=+2.8% Range: 1 st Germany/ 2 nd France/ 3nd Spain/UK  ¼ car manufactured in East Europe; IN EUROPE

5 5 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – BEFORE : Overview of the industry before the crisis The Automotive Industry in different world regions in 2006  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE 1 Toyota (Toyota, Lexus et Daihatsu) : General Motors (Chevrolet, Opel, etc.) : Volkswagen AG (Volkswagen, Audi, etc.) : Alliance Renault-Nissan (Renault, Nissan, etc.) : Ford Motor Company (Ford, Mazda, etc.) : Honda (Honda et Acura) : Hyundai Kia Automotive Group (Hyundai et Kia) : PSA (Peugeot et Citroën) : Suzuki : Fiat Group (Fiat, Lancia, etc.) : GERMANY FRANCE SPAIN 10 first leaders=10% of the total production vehicles produced in 2006 Main Suppliers (turnover>10M€): Denso, Delphi, Visteon, Valeo, Faurecia, Magna International

6 6 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – BEFORE : Overview of the industry before the crisis Globalization and strategies before the crisis  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE Globalization of the production More and more assembly in developing country Japanese companies settle in Europe European constructors (Renault, PSA) settle in East of Europe. Automotive and ecology Electric cars: many projects dismissed GPL cars: Important parks in Corea, Poland, Netherland, Italy/ Few in France Biocaburant: not optimized technology Automotive industry in France 3/4 vehicles sold abroad 14% of the industrial national turnover (not including the energy industry) -3% of employees since B€ investment abroad worldwide  +4.1% in B€ investment in France  -14% in 2006 Strategy of French groups: Turn to East countries PSA  Slovaquie & Tcheck republic Renault Nissan  Roumania/ Russia/ South of America

7 7 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – DURING: Reasons of the crisis and impact on the industry Financial Impact  effzef Vef Zefe BEFOREDURING THE RESCUE THE FUTURE Impact of the financial crisis Crisis of the credit The organization in tense stream of the sector

8 8 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – DURING: Reasons of the crisis and impact on the industry Deficient Management  effzef Vef Zefe BEFOREDURING THE RESCUE THE FUTURE Massive over-production Massive over-investment In the USA : industry too specialized

9 9 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – DURING: Reasons of the crisis and impact on the industry Ecological problem  effzef Vef Zefe BEFOREDURING THE RESCUE THE FUTURE Price of Petroleum Automobile manufacturers pay their delay in environmental protection today

10 10 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – DURING: Reasons of the crisis and impact on the industry Impact of the automotive crisis  effzef Vef Zefe BEFOREDURING THE RESCUE THE FUTURE Massive drop in cars’ sales

11 11 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – Impact of the automotive crisis  effzef Vef Zefe Massive over-production (2 million cars per year in Europe)  Objective: Maintain equity Companies have tried to save money by every possible ways  Drop of cars production up to 50% in some factories Sources: Françoise Vannobel, PSA & Le journal des Finances BEFOREDURING THE RESCUE THE FUTURE DURING: Reasons of the crisis and impact on the industry

12 12 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE RESCUE: Measures to end the crisis Governments Aids BEFORE DURING THE RESCUE THE FUTURE In France: “Prime à la casse”  Cars older than 10 years could be changed by another one emitting max. 161 gCO2/km with 1000€ of financial help.  Temporal rescue measure.  Jan’10  700€ ; July’10  500€. Similar aid-plans in Europeans countries (Spain, Germany, Italy,…). In EEUU only financial aids for car manufacturers ( M$ for GM and Chrysler). Lack of strategy plans. In China  No automobile breakdown (2 nd Trimester: 10 % increase in sales). They consolidate their 1 st world position as car industry.

13 13 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE RESCUE: Measures to end the crisis Corporate strategies  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE Drop production to drop dead-stock Readjust of employees Drop unnecessary spending (travels, sponsoring, meetings, …) Decrease budget in R&D and marketing Environmental strategy – Eco-brand RENAULT case study:  Offshoring: Morocco.  Closing threat to take governments aids (f.e. Valladolid plant).  Big investment in electrical cars. RENAULT case study:  Offshoring: Morocco.  Closing threat to take governments aids (f.e. Valladolid plant).  Big investment in electrical cars. PSA case study:  Likely alliance with Mitsubishi  Expansion to foreign markets PSA case study:  Likely alliance with Mitsubishi  Expansion to foreign markets

14 14 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE RESCUE: Measures to end the crisis Aids for suppliers  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE Since start of economical breakdown  Very big aid plan for suppliers of each big car manufacturer:  Continuous advice coaching  Financial support “Plate-forme automobile”: Manufacturer – Supplier – Government work in the future of car industry PSA case study:  Partnership program with 15 strategic suppliers (guaranties for R&D projects, …) PSA case study:  Partnership program with 15 strategic suppliers (guaranties for R&D projects, …)

15 15 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE FUTURE : Strategies and stakes of tomorrow The car of tomorrow  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE The U turn... But towards which direction ? Tomorrow’s car will have to be: - Cheap - Energy efficient - Environmental Friendly A more global issue: MOBILITY - Different needs between Paris and the Indian countryside  The Solution = A mix of all available solutions - In Europe,  “ a 300€/month rate comprising 1000km, the car, the battery and the energy” (1) (1)IFP Conference

16 16 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE FUTURE : Strategies and stakes of tomorrow The industry of tomorrow  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE Mature marketsBooming markets INSEE

17 17 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE FUTURE : Strategies and stakes of tomorrow The industry of tomorrow  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE In mature markets - Avoid overproduction - Concentrate on activities with higher added value (1) R&D, Style - A perfect testing ground for new high tech solutions due to higher requirements In booming markets - Integrate new markets and customers Via new alliances (PSA/Mitsubishi, Renault/Bajaj,...) - Increase volume of sales to counter attack low margins (2) - Have assembly lines close to the selling point (1)F. Vannobel, PSA (2)P. Casin,

18 18 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE FUTURE : Strategies and stakes of tomorrow The industry of tomorrow  effzef Vef Zefe BEFORE DURING THE RESCUE THE FUTURE And more globally: - Anticipate demands better 18 to 30 months to launch model “in an industry that has a large irrational part” - Rethink way of operating with suppliers - Resource issues (lithium, copper,...) (1) - Depletion of certain key resources - Greedy safe-keeping of certain countries (1)P. Casin,

19 19 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – THE END Thank you for your attention Any questions ?


Download ppt "1 Impact de la Crise financière sur l'industrie Automobile Groupe POUND – 16-12-2009 Impact of the Financial Crisis on the Automotive Industry The Pound."

Similar presentations


Ads by Google