ARC Advisory Group - Automotive White Paper

ARC Advisory Group have produced a White Paper for the Automotive Industry.

In the past 10 years, the top 6 European manufacturers have held between 73%-77% of the total car market.  Over the last five years, the leading European vehicle maker’s total European revenues grew at a compound rate of 6 percent, although overall revenues in 2002 were virtually static.  Yet with excess production capacity in Europe currently around 4 million units per annum, post-tax profitability is patchy. Although the German manufacturers are profitable, the margins aren’t great, and few other major vehicle makers are turning in good figures. The future of the European car market is slow growth, modest profits, and tough competition.

By 2020, annual world vehicle production could reach 80-90 million units, with production in Eastern Europe, Latin America, and Asia more than doubling.  Even though current production capacity utilisation is about 75%, 75-100 new car plants could be built in developing countries, each producing around 300,000 cars per annum.

European automotive component suppliers should understand the vehicle makers’ challenges, and their strategies to improve profitability.

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For additional information, contact:

Christine Murphy, Marketing Manager
Telephone: +44 (0)1494 428900
Fax: +44 (0)1494 428907
E-mail: christine.murphy@ifs.co.uk