Opportunities for Collaboration with the Italian Automotive Industry. Gianmarco Giorda Director Operations ANFIA

Transcription

1 Opportunities for Collaboration with the Italian Automotive Industry Gianmarco Giorda Director Operations ANFIA Skopje, 17 th June 2010

2 Outlook: global sales of Light Motor vehicles vs 2014 Global sales of cars and LCV (000/units and chg % 2010 vs 2009 and 2014 vs 2010) NAFTA +11% +39,7% 12,7 14,1 19,7 +12,2% CHINA +27,8% 13,0 14,6 18,6 OT H ER S A SIA SOUTH AMERICA +17,9% +5,6% +3,2% AFRICA & M.EAST +34,4% +11,3% +37,3% 5,3 5,6 6,6 3,1 3,2 4,3 +4,7% WORLD +28,3% 8,1 5,3 5,9 63,6 66,6 85,5 Source: Global Insight (estimations March 2010) 1

3 Outlook: production of Light Motor vehicles vs 2014 Production of cars and LCV (000/units and chg % 2010 vs 2009 and 2014 vs 2010) +20% CHINA +29,9% +11,1% SOUTH AMERICA +15% +63,6% AFRICA & M.EAST +38,9% 12,0 14,4 18,7 3,6 4,0 4,6 2,5 1,8 1,1 +15,4% WORLD +29,1% 57,7 66,6 86,0 Source: Global Insight (estimations March 2010) 2

4 Who we are ANFIA, Italian Association of the Automotive Industry which represents 280 national companies is structured in 9 product-based groups: Buses Sports & Special Cars ISTITUTIONAL RELATIONS Car Coachbuilders Vehicle Manufacturers Components TECHNICAL ASSISTANCE Tyres Coachbuilders Manufacturers Trailers STUDIES AND STATISTICS INTERNATIONAL ACTIVITIES Motor Caravan Manufacturers TRAINING 3

5 The Italian Automotive sector in the European framework EUROPE Turnover > 710 billion 95 billion Manpower 2.3 ml (+10 ml indirect) ITALY 275,000 (around 1 million indirect) R&D 20 billion 2/3 billion / year Fiscal income 360 billion billion In Italy the automotive sector represents nearly 3,000 manufacturers present on the domestic territory: one of the main employers 1st private investor in R&D 1st as for total fiscal income Export: 8.1% (2008) Source: ANFIA processing on data and estimation issued by ISTAT, EUROSTAT, ACEA 4

6 Components Industry in Italy A complete supply chain from concept to car Modules and systems Lighting and signalling devices Fuelling and exhaust system components Electrical / electronic components Transmission components Components for bodyworks and interiors Engine components Steering, suspension and braking system components Starting and ignition components Equipment and mouldings WORLD LEADERSHIP CNG (Compressed Natural Gas) systems Powertrain technologies Telematics and infomobility Turnover 45 bn Export 18.4 bn (41%) Trade balance up 6,8 bn R&D 3% Total companies 2,500 No. of directly employees 170,000 Source: ANFIA processing on the basis of ISTAT, EUROSTAT, ACEA data 5

7 Short/medium term challenges for the Italian Supplier Industry Challenges Volumes Price Costs Cash Actions Companies have to Redefine their Business Model - Increase volumes of the entry level cars - Modify Product Portfolio focusing on high growth rate and profitable technologies (i.e. powertrain, electronics, telematics solutions, etc) - Consider the opportunities of partnerships and consolidation processes among the supplier companies - Redefine Customer Portfolio focusing on emerging and fast growing markets - Consider the opportunity to locate new investments in the low cost countries (i.e Western Balkans countries) Becoming global players and succeeding in facing the competitive pressure 6

8 Main Competitive advantages 1. Highly competitive overall cost structure 2. Labor availability, cost and quality 3. Strategic location and proximity 4. Improving fiscal and incentive regimes

9 General requirements for the automotive supply chain Mandatory: any automotive supplier must be compliant REQUIREMENTS Best Practice - Best in Class: able to give companies competitive advanteges versus competitors

10 Mandatory requirements 1. ISO/TS REGISTRATION (for first tier suppliers) 2. ISO 9001 REGISTRATION (for non first tier suppliers) 3. Knowledge and application of automotive core tools FMEA MSA SPC 4. CUSTOMER SPECIFIC REQUIREMENTS

11 Best practice- Best in class RISK MANAGEMENT LEAN ORGANIZATION SIX SIGMA KAIZEN TPM On these methodologies ANFIA organizes training courses all over the world 5S

12 Success story Johnson Controls Skopje Plant

13 Success story Johnson Controls Skopje Plant Key Figures Plant opened in 2008 Total land surface m² Plant size: m 2 Manufacturing area m2 Logistics area 560 m2 Offices and other areas m 2 People Currently: 203 employees OEM Customers: PSA, RSA, Renault-Nissan Daimler, Smart, BMW To start this FY: VW, Skoda, Ford Direct Customers - Internal: JC Namestovo Plant (Slovakia) JC Remchingen Plant (Germany) JC Namsa Plant (Korea)

14 Why we opened the plant in Macedonia? The plant is part of Johnson Controls long term strategic objective to position itself in the growth markets of Eastern Europe, offering at the same time a superb platform to supply the new markets We are strengthening our local presence and expanding our production network to the growth markets of Eastern Europe The location of this plant optimizes the synergies provided by our development center only 200 km away in Sofia, Bulgaria What competitive advantages does Macedonia offer? A geographically central position in Eastern and Central Europe Good access to all Eastern European markets Good staffing capacitites with a high standard of education, with wage cost advantages It is only a short distance to support the emerging markets in Eastern Europe Investment incentives offered by the Government since the plant is located in a free economic zone

15 How satisfied are we with our investment in Macedonia? We supply our customers for the past 2 years with high quality products that fully match their quality standards as well as those of Johnson Controls The plant is being staffed regularly with the workforce with necessary qualifications to deliver on time and high quality products The quality of support we get from the local suppliers is matching our high standards Overall we are satisfied with our investment in Macedonia and we think that we have achieved our medium and long-term strategic goals that include constant improvement of customer service and strengthening the company s position on the growth markets of Eastern Europe Our investment was not only an investment in the construction of the plant, but also in technology, people and in the community. This is benefit for Johnson Controls, our customers and the local community

16 Opportunities of collaboration with the Italian automotive sector Some concrete proposals - To include all presentations and newsletters coming from Investments Agencies on ANFIA web site - To organize single Workshops by country (or, as an alternative, directly an appropriate one concerning Western Balkans countries ) in Torino and invite all companies that are potentially interested in investing in that area - To arrange a suitable Mission of Italian companies with the aim of accompanying them to visit some areas of major interest

17 Thank you for your attention Contacts ANFIA - Italian Association of the Automotive Industry Ph Fax g.giorda@anfia.it