International Industry Consulting



The Automotive Industry is a highly competitive industry with slim margins and high volume. The traditional markets North-America and Europe are loosing more and more influence in the global turnover, since the growth of the industry is determined through the so-called BRIC-States (Brazil. Russia, India, China). The customer-structure is difficult, since the numerous mergers worldwide left only a few OEM's (Automobile Manufacturers). A similar situation exists with the external suppliers. There are but a few Tier 1 suppliers that produce and deliver all the components for the OEM. The minor external suppliers are not able to facilitate the increasing demands of globalization and are either taken over by larger companies, or continue and barely scrape by or face bankruptcy.

Nevertheless the automobile industry still offers great possibilities, mainly through the rapidly advancing technical development, the growth in the BRIC-States and the globalization.

Europe – and here especially Germany and France – still play a very important role in the industry despite the comparatively weak turnover numbers. This is based on the development centres of many important manufacturers such as VW, Audi, Daimler, BMW, Renault, Peugeot, Citroen, GM and Ford. Here we also have some Tier 1 suppliers that are worldwide leaders with certain technologies. Very often these are medial positioned operations that are used to work locally. They do not have the global approach and competence and also do not have the financial means to be globally present. They need additional financial resources and strategic partners. The BRIC-States however need the technology and the know-how to be able to qualitatively join and adhere to the traditional markets. The most recent example is the take-over of Volvo through the Chinese Geely company. Other producers like BYD look for strategic alliances as in the case with Daimler.