http://www.supplierbusiness.com/analysis_news.asp SupplierBusiness's monthly Analysis newsletter provides in-depth discussion of recent developments in the automotive supplier industry worldwide. It is written for senior executives interested in trends and issues for the international supplier industry. en-uk Mon, 12 May 2008 23:00:00 GMT Mon, 12 May 2008 23:00:00 GMT http://www.supplierbusiness.com/analysis_news.asp 5 http://www.supplierbusiness.com/news_endpoint.asp?id=6388 Mulally, whose princely reputation at Boeing was founded on deeply integrated and refined relations with supplier partners, has been deliberate in configuring his new company's purchasing model even as Ford's scores on supplier satisfaction rankings continue to bring up the rear. Thu, 8 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6388 http://www.supplierbusiness.com/news_endpoint.asp?id=6387 Thu, 8 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6387 http://www.supplierbusiness.com/news_endpoint.asp?id=6384 Thu, 8 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6384 http://www.supplierbusiness.com/news_endpoint.asp?id=6385 Thu, 8 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6385 http://www.supplierbusiness.com/news_endpoint.asp?id=6386 Thu, 8 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6386 http://www.supplierbusiness.com/news_endpoint.asp?id=6373 Automakers and suppliers are working closely together as systems have become more complex. The challenge: merging the innovation and time-to-market speed of consumer electronics with the reliability and much longer design cycles of the auto industry. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6373 http://www.supplierbusiness.com/news_endpoint.asp?id=6372 A recent report by the BCG claims that suppliers and, in particular, OEMS are still reluctant about localising production in low cost countries. Solutions proposed for this involve bringing in technology and experience; companies can overcome the inherent difficulties. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6372 http://www.supplierbusiness.com/news_endpoint.asp?id=6377 Autoliv appointed Marika Fredriksson as the Vice-President and Chief Financial Officer (CFO). Her appointment will be effective 1 September 2008. She will replace the outgoing CFO Magnus Lindquist. Fredriksson is currently working as Senior Vice-President of Finance & Strategy and CFO at Volvo Construction Equipment, Brussels (Belgium). She has been associated with Volvo for around 12 years. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6377 http://www.supplierbusiness.com/news_endpoint.asp?id=6376 How will the growth of low cost cars in India and China change the challenge for international suppliers, if at all? How well do you think international suppliers are adapting to local needs?Low cost cars represent one car segment only, which is more relevant for India and China, than for export. Many foreign automotive suppliers have established production facilities in China and India, most of them located close to foreign OEMs' plants. Their presence reflects both local-content requirements and their clients' expectations. These suppliers have benefited from the strong growth of automotive manufacturing in both countries, driven primarily by surging domestic demand. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6376 http://www.supplierbusiness.com/news_endpoint.asp?id=6375 The Czech company is looking for more low-cost country suppliers. During the past 16 years the Czech carmaker Skoda has increased the number of vehicles it ships to foreign markets from 172,000 to 549,000. The number of export countries has tripled to 92 in that span. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6375 http://www.supplierbusiness.com/news_endpoint.asp?id=6374 The crossover point between east and west Europe, with one of its most successful OEMs in Skoda, the Czech Republic is one the most attractive of Europe's low-cost countries to automakers. Wed, 7 May 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6374 http://www.supplierbusiness.com/news_endpoint.asp?id=6099 What are the long-term implications of last year's agreements with unions on health care and costs for North American OEMs and suppliers? Has this significantly changed the outlook for the industry in the mMidwest or is there more to be done in this area?In one word: significant. We are in the midst of a fundamental restructuring of the entire global automotive industry. Certainly, the magnifying glass is on North America. There is no part of the industry that is immune from the transformation and the UAW is a core partner in the transformation to improve the competitiveness of the North American auto industry. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6099 http://www.supplierbusiness.com/news_endpoint.asp?id=6102 John German is American Honda's point person for environmental and energy issues, and is the company's primary liaison between Honda R&D in Japan and regulatory affairs. Prior to joining Honda in 1998, he spent eight years in powertrain engineering at Chrysler and 13 years with the US Environmental Protection Agency. German spoke with SupplierBusiness at the 2008 SAE hybrid vehicle technologies symposium in San Diego, California, in mid-February 2008. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6102 http://www.supplierbusiness.com/news_endpoint.asp?id=6104 Bosch's lead in sales over its rivals has increased in 2007. The company reported a rise in sales of €1.28bn to €28.50bn (US$41.9bn) in 2007 from €27.22bn (US$35.9bn) in 2006. Denso also expects to see a sales boost, with anticipated sales of ¦3,950bn (US$35.1bn) predicted for its fiscal year ending on 31 March 2008, a rise from ¦3,609bn (US$30.32bn) for the financial year ended March 2007. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6104 http://www.supplierbusiness.com/news_endpoint.asp?id=6105 Despite a crisis in electricity power supplies hitting the motor industry in southern Africa, and further delays in announcing government long-term strategies for the industry, Ford is going ahead with a major investment program that will benefit some 110 suppliers. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6105 http://www.supplierbusiness.com/news_endpoint.asp?id=6114 Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6114 http://www.supplierbusiness.com/news_endpoint.asp?id=6115 Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6115 http://www.supplierbusiness.com/news_endpoint.asp?id=6094 Bosch has once again seen a rise in sales that further consolidates its position at the top of the SupplierBusiness sales ranking. Sales for 2007 totalled €28.5bn (US$41.9bn) against figures of €27.22bn (US$35.9bn) in 2006. This meant that the gap between Bosch and its rivals, in terms of sales, also increased. Bosch's nearest competitor Denso expects increased sales, with anticipated sales of ¦3,950bn (US$35.1bn) predicted for its fiscal year ending on 31 March 2008. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6094 http://www.supplierbusiness.com/news_endpoint.asp?id=6095 A slowing domestic market, high raw material prices, and increasing competition from low-cost countries; the litany of troubles facing North America this year are well documented. However, despite predictions that as much as 30% of the supply chain is vulnerable financially, chinks of light exist amid the darkness. Strengthening relationships between suppliers and OEMs, new labour deals, and the taboo subject of in-sourcing are all aspects which could soften the impact of slowing sales. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6095 http://www.supplierbusiness.com/news_endpoint.asp?id=6096 A sense of malaise began to permeate the North American automotive industry in the early weeks of 2008. The contributors to this atmosphere were obvious; the sub-prime mortgage crisis; lingering fears of recession; a volatile stock market; a fall in consumer confidence; a US new-vehicle market that could drift below 15.5m units; and continuing production cuts by the Detroit OEMs. All add to the argument that this is the year that suppliers will really start to feel the backlash of the marketplace. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6096 http://www.supplierbusiness.com/news_endpoint.asp?id=6097 North American suppliers are under pressure, but they have improved their balance sheets says Stefano Aversa, Co-President, AlixPartners LLP, a global consulting firm in an interview with SupplierBusiness. According to the Alix firm's index of risk of default, the percentage of US companies in danger has declined from 38% at end of 2006 to 27% at the close of 2007. "Relatively speaking, we are improving significantly, but that is still highest percentage of all the rest of the world," said Aversa. He said the percentages are 8% in Europe and 15% in Asia. Aversa also cited "something new." He said that Indian and Chinese suppliers are "really interested in buying western companies, particularly US companies." Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6097 http://www.supplierbusiness.com/news_endpoint.asp?id=6098 The outlook for suppliers in North America is unremittingly bleak, with the threat of recession combined with the Detroit 3's production cutbacks and the bankruptcy of high-profile suppliers such as Plastech. Yet there is a thin silver lining in the storm clouds, one rarely discussed in the automotive press. This is the opportunity for stronger suppliers to take over business from weaker ones. Such re-sourcing of contracts from distressed suppliers to more solid firms is usually initiated by nervous OEMs, worried that the incumbent vendor will as a result of financial stress either miss a shipment, or fail to control quality, or possibly fall into bankruptcy altogether. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6098 http://www.supplierbusiness.com/news_endpoint.asp?id=6100 Like other Chapter 11 cases in the US supplier industry, the endless details surrounding Dura Automotive's bankruptcy process obscures what is really going on at the company while it has been in protection. Dura, which makes driver control systems, door modules, glass systems, seat mechanisms and engineered structures, is struggling to exit bankruptcy. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6100 http://www.supplierbusiness.com/news_endpoint.asp?id=6101 Toyota is stepping up development of diesel-engine technology for passenger cars as part of an overall push to satisfy stiffening emissions standards in Europe and the US. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6101 http://www.supplierbusiness.com/news_endpoint.asp?id=6103 Toshio Hirota is head of technology planning for environmental issues at Nissan Motor Co. and has been involved in advanced powertrain research at the company for the past 35 years. He spoke with SupplierBusiness at the 2008 SAE hybrid vehicle technologies symposium in San Diego, California, in mid-February. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6103 http://www.supplierbusiness.com/news_endpoint.asp?id=6106 Steering systems form one of TRW's core business areas. In broad terms, passive safety systems (airbags and seatbelts and related parts) account for just over one-third of TRW's turnover, while active safety systems (brakes, steering and related parts) represent just over half of TRW's business. More specifically, airbags and related electronics account for 22% of TRW turnover, foundation brakes and electronic braking systems account for nearly 21%, and steering represents just under 16%. With the growth of electric power steering (EPS) accelerating, especially in the small and mid size car segments, and the increased interest in steer-by-wire, SupplierBusiness spoke to Charlie Cregeur of TRW about the steering market and where TRW expects it to go in the near future. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6106 http://www.supplierbusiness.com/news_endpoint.asp?id=6107 MUNICH As the automotive market fragments and automotive variants increase, front-end modules are near the end of their integration possibilities. It will take a serious platform approach on the part of OEMs to make decisions on common elements early and stick to them if there are to be major improvements, said Jacques Hoffner, development program director at Faurecia, the leading integrator of front-end modules in Europe. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6107 http://www.supplierbusiness.com/news_endpoint.asp?id=6108 GKN driveline predicts global growth of 56%, driven by double digit growth in emerging markets, mainly China and India, while growth in mature markets will be in the lower single digit region. It has positioned itself in higher growth markets, helping the company to gain dominant market shares in the regions, especially China and India. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6108 http://www.supplierbusiness.com/news_endpoint.asp?id=6109 What are your growth expectations of the global automotive market and for GKN in its automotive business?The global automotive market has a current growth rate between 3% and 4%, but the growth is all in Asia. There is double digit growth in countries like China, India and Thailand. Our drive-shafts business is looking at a 56% growth globally, but driven by the emerging market. There is 20% growth in India which will double the size of our Indian business in five years. We always grow a little faster than the market as we have a dominant market share. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6109 http://www.supplierbusiness.com/news_endpoint.asp?id=6112 NORTH AMERICA Johnson Controls files motion in US Bankruptcy Court Johnson Controls has approached US Bankruptcy Court to force its supplier Plastech Engineered Product to accept or reject its sourcing agreement. The company filed a motion in a bankruptcy court based in Detroit, Michigan (USA) in a bid to end uncertainty related to supply agreement with Plastech. Johnson Controls is Plastech's largest customer, accounting for over half of the total sales. Plastech is not able to produce many components at the agreed price with its customers. Sat, 1 Mar 2008 00:00:00 GMT http://www.supplierbusiness.com/news_endpoint.asp?id=6112