European Automotive Survey 2013

European Automotive
Survey 2013
Survey results
Structure of the study
►
►
Survey of 300 companies active in the European
automotive industry (15% OEMs, 85% suppliers)
Phone interviews conducted by an independent
market research institute in January 2013
(Valid Research, Bielefeld).
Peter Fuß
Partner/German Public Auditor/German Tax Advisor
Senior Advisory Partner Automotive GSA
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Mergenthalerallee 3-5
65760 Eschborn
Phone: + 49 (6196) 996 27412
[email protected]
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Ernst & Young
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
Current and future business situation
OEMs significantly more satisfied than suppliers –
German automotive industry doing good business
How would you assess your current business situation?*
Germany
Europe
OEMs
Suppliers
29
33
45
56
14
14
12
16
38
31
41
17
1
Good
11
Fairly good
4
Medium
Fairly poor
11
4
Poor
7
12
4
*All results in percent
► Europe’s 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 their
current situation; the corresponding figure for suppliers is only 29%.
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Ernst & Young
Italy’s automobile industry is in a deep crisis
How would you assess your current business situation?*
►
►
►
Eastern European companies
are significantly more satisfied
with their current business
situation than Western
European companies.
In Germany, the UK and
France respondents report
above-average satisfaction.
Respondents from European countries:
Germany
45
UK
30
France
30
Spain
The majority of companies in
Italy report a poor business
situation (63%).
Italy
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Ernst & Young
7
33
31
11 1
44
3 3
47
23
36
17
50
35
Good
*All results in percent
18
24
Eastern Europe
Western Europe
20
33
13
12
13
15
44
14
Fairly good
7
37
Medium
42
12
Fairly poor
Poor
4
Mainly optimistic projections
How will your company’s business situation develop over the next six months?
All respondents
Respondents from European countries:
France
1 10
25
Germany
21
11
10
79
8
2
UK
22
Spain
Italy
68
Significantly improve
65
Slightly improve
65
12
4
60
28
64
Eastern Europe
17
Western Europe
15
13
32
75
8
1
Slightly deteriorate
Significantly deteriorate
70
14
*All results in percent
► Auto industry managers in Eastern Europe, France, Germany and the UK in particular look to the future with
optimism. In Italy, by contrast, every third respondent anticipates a deterioration in their own business situation.
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Ernst & Young
...but a further decline in sales is expected in
Western Europe
How will global passenger vehicle sales develop in the next 12 months
in the following regions?*
►
►
Auto industry managers expect
sales to increase in Asia in
particular.
A further decrease is forecast
for Western Europe. Only 15%
of respondents expect sales
figures to increase.
Respondents from European countries:
China
43
India
32
Rest of Asia
Respondents in Germany
expect the Western European
market to decrease by 3%.
19
45
31
4
Ø +4%
6
Ø +3%
5
Ø +2%
1
12
49
32
Ø +2%
6
1
South America
16
34
North America
8
35
Eastern Europe
7
35
Western Europe 3
12
Slightly increase (up to 5%)
Slightly decrease (down no more than 5%)
Significantly decrease (down more than 5%)
Ernst & Young
41
42
9
16
35
Ø +2%
Ø +1%
17
39
42
Significantly increase (more than 5%)
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13
43
18
Russia
►
40
3
8
Ø +1%
Ø -1%
Remain roughly the same
*All results in percent
Growth only in the lowest and highest price
segments
What short- and medium-term prospects do you foresee for the
new passenger vehicle market?*
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
Growth
Stagnation
Decline
52
20
28
48
34
38
20
32
37
29
43
19
*All results in percent
► 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% forecast
stagnation or even declining sales figures.
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Ernst & Young
The companies’ strategic and operational planning
Despite the crisis: production capacity also to
increase in Europe
Do you expect to increase or decrease your production capacity in the coming year?*
All respondents
32
German companies
27
38
53
65
51
38
55
15
11
8
7
in Europe
worldwide
in Europe
worldwide
Increase
Remain unchanged
Decrease
*All results in percent
► 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.
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Production in Europe: OEMs are considerably more
cautious than suppliers
Do you expect to increase or decrease your production capacity in Europe in the
coming year?*
Respondents from European countries:
UK
Spain
Germany
France
Italy
7
32
8
27
8
25
34
68
13
51
19
42
14
Remain unchanged
Suppliers
17
47
2
Eastern Europe
Western Europe
Increase
52
OEMs
30
Decrease
15
15
*All results in percent
► One in three Spanish companies intends to reduce production capacity throughout Europe in 2013 – by contrast, a
very 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 is
only 30%.
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German companies intend to continue creating
jobs...
How will employment in your company develop over the next six months?
All respondents
20
German companies
28
22
61
67
11
11
10
worldwide
in Europe
worldwide
61
19
in Europe
Increase
Remain unchanged
Decrease
30
60
*All results in percent
► 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 create
jobs, and the same number plan to reduce headcount.
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...but in Europe the labor market is stagnating
How will employment in your company in Europe develop in the coming year?*
Respondents from European countries:
Spain
UK
Germany
France
Italy
25
11
17
20
66
61
17
19
7
19
17
Remain unchanged
17
22
12
37
Suppliers
25
11
Eastern Europe
Western Europe
Increase
30
OEMs
26
18
Decrease
*All results in percent
► Alarm signals for Italy: In Europe, only 7% of the Italian companies polled intend to create jobs; by contrast, more
than a third (37%) intend to cut jobs.
► Eastern European companies are more optimistic in their HR policy than Western European companies.
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Companies opt for greater flexibility
Are you currently planning to step up one or more
of the following measures aimed at raising flexibility?*
Flexible working time
models
(e.g. phased retirement).
21
Integration of external
providers
12
Concentration of
production locations and
administrative units
Are being implemented
12
40
28
17
Establishment of
Shared Services Centers
47
26
38
21
18
30
Are planned
"Implemented" and "planned"
OEMs
Suppliers
Working time
models
34
49
Integration of
external providers
46
39
Concentration of
production
locations
43
37
Shared Services
Center
33
29
*All results in percent
► In view of the uncertain economic development, companies are taking various measures geared to increasing
flexibility and efficiency. The most common measures implemented or planned are flexible working time models
(47%); external providers are also increasingly being integrated (40%).
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Ernst & Young
Business models and product ranges under
scrutiny
Strategic realignment: are you currently planning
one or more of the following measures?
Check whether business
models are future-proof
33
Revision of product range
31
Restrict non-strategic
activities
19
Strategic acquisitions
17
Divestments
Are being implemented
11
68
37
27
Acquisitions in order to
increase cost synergies
72
39
60
33
54
35
48
31
22
33
Are planned
"Implemented" and "planned"
OEMs
Suppliers
Business models
68
73
Product range
74
67
Restrict nonstrategic activities
50
61
Acquisitions (cost
synergies)
52
55
Strategic
acquisitions
46
49
Divestments
25
34
*All results in percent
► In order to make themselves crisis-proof, 72% of the companies polled are reviewing whether their business
models 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.
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OEMs in particular are increasingly backing
research and development
How will your company’s investments in research and development develop in the
coming year?*
All respondents
German companies
Decrease
Decrease
Increase
7
Increase
2
33
Increase
Decrease
OEMs
41
5
Suppliers
32
7
40
58
60
Constant
Constant
*All results in percent
► 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.
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Ernst & Young
Focus on optimizing processes
Are you planning to increasingly streamline processes
in the following business units?
Purchasing
33
70
37
68
"Implemented" and "planned"
OEMs
Suppliers
Purchasing
68
70
Personnel
development
68
68
Personnel development
30
38
Production
31
36
67
Production
68
67
Marketing/sponsorship/
events
29
38
67
Marketing/events/
sponsorship
71
65
Sales
73
63
Administration
68
55
Sales
Administration
Are being implemented
33
30
65
32
28
Are planned
58
*All results in percent
► 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 in
order to increase efficiency.
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Attractiveness of automotive sites
Top countries: innovation power
In your opinion, how competitive are the following automotive hubs with respect to
innovation power?*
Germany
44
Japan
24
South Korea
41
20
China
41
18
USA
42
13
Brazil
10
India
10
Sweden
43
39
35
13
30
France
6
28
Russia
7
24
Czech Republic
37
4
UK
27
7
Italy
4
Slovakia
2
Poland
3
23
24
23
17
Turkey 1
17
Hungary 1
17
Spain
14
3
*All results in percent
Very competitive
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Fairly competitive
Ernst & Young
Top countries: innovation power
Difference 2011-2013 in percentage points
South Korea
21
Brazil
13
Sweden
9
USA
7
Japan
6
India
5
China
3
Germany
2
Slovakia
0
Czech Republic
-2
Hungary
-3
Turkey
-3
Russia
-4
Poland
-8
Italy
-9
UK
-11
Spain
-12
France
-21
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Ernst & Young
Top countries: product quality
In your opinion, how competitive are the following automotive hubs with respect to
product quality?*
Germany
51
Japan
37
28
44
Sweden
19
43
South Korea
19
42
USA
13
UK
13
France
47
35
10
Italy
34
6
Czech Republic
34
4
31
Brazil
7
Spain
6
China
5
29
28
27
Slovakia
3
24
Russia
3
23
Poland
3
23
India
4
22
Hungary 1
Turkey
2
*All results in percent
20
17
Very competitive
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Fairly competitive
Ernst & Young
Top countries: product quality
Difference 2011-2013 in percentage points
South Korea
22
Japan
18
Sweden
14
Brazil
13
USA
11
Germany
11
Czech Republic
7
UK
3
Slovakia
2
China
0
Italy
0
Turkey
-1
Poland
-1
Spain
-1
Russia
-2
Hungary
-4
India
France
-5
-15
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Ernst & Young
Top countries: manufacturing costs
In your opinion, how competitive are the following automotive hubs with respect to
manufacturing costs at present?*
China
40
India
31
34
Czech Republic
35
8
54
Slovakia
10
51
Hungary
11
Poland
7
Brazil
6
South Korea
Turkey
Russia
46
49
45
8
37
5
35
3
34
Germany
8
21
Japan
6
22
USA
5
23
Spain
4
21
Sweden
6
France
5
Italy
5
13
UK
5
13
*All results in percent
16
15
Very competitive
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Fairly competitive
Ernst & Young
Top countries: manufacturing costs
Difference 2011-2013 in percentage points
Slovakia
27
China
26
India
25
Czech Republic
22
Hungary
19
Poland
17
Brazil
14
South Korea
6
Turkey
2
Russia
0
Sweden
-6
USA
-7
Spain
-10
Italy
-15
Japan
-18
Germany
-18
France
UK
-19
-21
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Ernst & Young
Top countries: productivity
In your opinion, how competitive are the following automotive hubs with respect to
productivity?*
Germany
30
44
Japan
21
45
South Korea
20
46
China
25
India
16
USA
8
France
8
38
38
36
5
36
Sweden
11
UK
Poland
35
12
Brazil
Czech Republic
36
29
8
31
5
31
Slovakia
3
29
Hungary
4
27
Russia
4
26
Turkey
4
25
Italy
Spain
6
3
*All results in percent
22
23
Very competitive
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Fairly competitive
Ernst & Young
Top countries: productivity
Difference 2011-2013 in percentage points
South Korea
26
Brazil
15
India
13
China
9
Czech Republic
7
Japan
7
Germany
7
Poland
6
USA
2
Slovakia
1
Hungary
1
Turkey
1
Sweden
0
UK
-2
Russia
-3
Italy
-7
France
-7
Spain
-15
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