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Documente Cultură
Carmakers - World
Market Analysis 2015-2020 Trends
Corporate Strategies
Report code:
5XMTR03
Analyst:
Kathryn MCFARLAND
Publication date:
December 2015
At Xerfi Global, we believe that international classifications are not the only valid definition of a market. It
is the companies that make the sector and not vice-versa. During our first brainstorming session, we
strive to give a clear-cut definition of the scope of the report.
2
3
During the second phase, Xerfi Globals analysts identify the players who will be studied in the report. Our
aim is not only to classify by total sales, but also to detect tomorrows movers and shakers, especially
those from emerging markets.
Using the best and most up to date international sources, Xerfi Globals experts handpick the most
relevant indicators pertaining to both supply and demand.
During a further brainstorming session, the Xerfi Global team aims to decipher the main corporate
strategies and key future trends.
Thanks to a final brainstorming session, drawing on the knowledge of all the members of Xerfi Global, the
main conclusions are debated and ultimately summed up in no more than a dozen slides. Concision,
precision and accurate forecasts are our main aims.
Table of Contents
0. Conclusions
1. Market Fundamentals
1.1. Overview
1.2. The industry
2. Market Environment and Prospects
2.1. Market Overview
2.2. Demand
2.3. Supply
2.4. International Trade
3. Corporate Strategies and Competition
3.1. Competitive Environment
3.2. Structure of Competition
3.3. Corporate Strategies
4. Case Studies
5. Company Profiles
5.1. Volkswagen Group
5.2. Toyota Motor
5.3. General Motors
5.4. Hyundai Motor Company
5.5. Nissan Motor
5.6. Renault Group
5.7. Ford
5.8. BMW
5.9. Honda
5.10. PSA
5.11. FCA
5.12. Tata
5.13. SAIC
5.14. Geely
5.15. Tesla
6. Statistical Appendix
7. Sources
8. Annexes
4
15
16
18
27
28
46
51
55
60
61
75
91
109
116
117
129
140
151
161
164
167
176
179
182
185
189
192
195
198
201
212
216
0. Conclusions
Having reinvented itself after the global financial crisis and put into place deep structural changes that should have set
the stage for more sustained growth, the current challenge facing the world automobile market is the volatility of
demand combined with disruptive forces such as stricter regulations, changing technology and more sophisticated
customer expectations.
The uncertain future of emerging markets, particularly China, now the worlds biggest car market, which seems to be
running out of steam, leaves question marks hanging over the future growth of the industry. Automotive sales are
therefore expected to be slow-growing over the next five years, despite some revival of mature markets.
At the same time, carmakers are coming under pressure to invest heavily in new technology. Environmental and safety
regulations are becoming stricter and, in addition to this, customers are demanding more connectivity, automatism as
well as alternative mobility services. Such regulations and requirements create technological challenges and require
considerable investment and thus costs which carmakers have difficulty passing on to customers given the highly
competitive nature of the industry.
Cost pressures will mean that modular systems and high-volume global platform architectures will be the norm. A new
wave of consolidation via alliances and mergers may also be on the horizon so as to take advantage of synergies and
share the burden of investment.
As a result of the increased technological content in the value of cars, highly-specialised suppliers will become valuable
partners, and new entrants, in the form of technology companies, are bound to come onto the scene. Vehicles will
eventually be perceived less as products and;
- firstly, more as part of a service as car-sharing and mobility options increase in popularity and,
- secondly, as platforms for connectivity technology, which in turn will prove to be a major source of
added-value.
The premium sector will continue to attract attention from carmakers thanks to its higher margins. At the other end of
the spectrum, the small car segment will also continue to grow.
Despite the pressure facing the industry, governments are unlikely to let the industry suffer given its economic weight
and are likely to take measures to support the industry should it run into considerable trouble.
120
2015:
91.2m
units
100
80
2005:
66.7m
units
60
30%
25%
20%
15%
10%
5%
40
0%
-5%
20
-10%
-15%
8%
Intense competition means that the automobile industry reports relatively low profits, which
have hovered just over 5% on average over the last 5 years. Considerable investment in
globalisation as well as compliance with stringent fuel emission standards and fuel efficiency
requirements represent considerable structural costs for companies, weighing down on their
profits. From 2014, the deceleration in the Chinese market, in which companies have invested
heavily, has also led to a drop in profits for companies exposed to this market.
7%
6%
-2.8%
3.3%
16.8%
-9.1%
5%
4%
3%
2%
2010
2011
2012
2013
2014
Customer expectations
Regulations
Environmental
regulations
Safety regulations
Connectivity
Stricter emission
regulations mean
carmakers must invest
in new powertrain
development as well as
weight-saving
technologies.
Stricter safety
regulations mean that
carmakers must
develop and fit stateof-the art technologies.
Increased interest in
telematics, infotainment
and autonomy requires
considerable
investment.
Increased costs for carmakers that are difficult to pass on to end customers, given the highly
competitive nature of the business.
Source: Xerfi Global with FCA
unit: %
60%
China
US
50%
Japan
40%
Brazil
Germany
30%
India
20%
UK
Russia
China accounted
for 26.6% of vehicle sales in 2014
making it, by far, the worlds largest
market
France
Italy
10%
0%
10
15
20
25
Source: Xerfi Global with OICA, *Xerfi Global forecast
PREMIUM BRANDS
10
Such a shift is to
change carmakers
competitive
environment and
focuses considerably
POSSIBLE
FUTURE
PERCEPTIONS
OF VEHICLES
TRADITIONAL
PERCEPTION
OF VEHICLES
TIME
Source: Xerfi Global
11
Volkswagen
2014
SALES
202.46
GM
Ford
FCA
116.57
107.71
96.09
2010-2014
SALES CAGR
12.4%
9.4%
3.6%
2.8%
27.9%
2014
OPERATING
MARGIN
6.3%
10.1%
2.6%
2.7%
3.5%
2010-14
AVERAGE
OPERATING
MARGIN
6.2%
Volkswagen sold over 10m cars worldwide, spanning from passenger cars to heavy
commercial vehicles. On a geographical basis, revenue growth was chiefly fuelled by AsiaPacific and North America.
Deliveries in all of its main brands have gone from strength to strength. However, the Audi
brand was the fastest growing, with the pace of volume sales rising 12.9% on annual average
over the 2010-2014 period.
6.4%
Toyota has been reinforcing its manufacturing operations across the globe, with a focus on
key growth markets in Asia. Revenue in Asia (excluding Japan) has grown faster than in all
other regions (13.3% on average per year over 2010-2014).
In 2014, North America outpaced Japan as Toyotas largest regional market, with a 34.6%
slice of revenue (compared to 30.6% for Japan).
4.2%
The decrease in petrol prices over the past years has reignited demand for SUVs and pick-up
trucks in North America, giving GM a revenue boost.
Additional tailwinds came from China where the group runs operations through a multitude
of joint ventures so as to develop vehicles that respond to the needs of Chinese drivers. GM
and it partners sold 3.5m cars in China in 2014 second only to the Volkswagen group which
delivered 3.68m units.
4.9%
Growth has been somewhat hampered due to a drop in market share in the US and sales in
Europe and South America combined with a weak presence in emerging markets as well as an
increase in the cost of goods that has not been transferred to customers. Ford also suffered
from considerable recall costs in 2014.
3.9%
Sales have been following an upward trend in the last five years primarily due to Chrysler's
sales in the consolidated accounts. Fiat hit the jackpot with its acquisition of Chrysler, whose
strong sales in the US have helped it to weather the European slump. Profit slowed in 2013
and 2014, mainly due to costs related to purchasing shares of stock from the UAW Retiree
Medical Benefits Trust and higher recall costs.
12
With car mix skewed towards small cars, Hyundai is very cost-efficient
Key performance indicators and main growth drivers of leading global carmakers
units: billion euros, compound annual growth rate (CAGR) of sales in percentage, operating profit as a percentage of sales
COMPANY
Honda
Nissan
2014
SALES
20102014
SALES
CAGR
94.63 10.5%
80.76
6.7%
2014
OPERATING
MARGIN
5.0%
5.2%
2010-14
AVERAGE
OPERATING
MARGIN
5.4%
Net sales picked up in 2012 after dropping to a low in fiscal 2011 due, firstly, to temporary supply
chain disruptions caused by the Great East Japan Earthquake and the floods in Thailand and,
secondly, sluggish economic conditions in Europe and the US and slowed growth in Asia. They have
followed an upward trend since then thanks to strong sales in Japan and the US, as has profit, with
the exception of a drop in operating profit in 2014 when teething problems at a new plant in Mexico
dented sales and profit in the US.
5.5%
In recent years, Nissan has enjoyed strong revenue growth in the US and China they were the
groups largest markets in 2014, accounting for 26.1% and 23.0% respectively of total sales volume.
Over five years, Nissan has increased its global presence, encompassing a 6.2% share of the global
car market in 2014, compared to 5.8% in 2010.
SAIC
76.17 19.7%
2.4%
4.4%
While sales have seen continued growth over the last five years, profit has been dropping since 2011
due to increasing competition from local rivals and a slowing Chinese economy and this has been
exacerbated in 2015 with its joint ventures with General Motors and Volkswagen having to cut car
prices to rev up sales amidst Chinas huge economic deceleration.
Hyundai
Motor
63.64
8.5%
9.4%
Hyundai has recorded the highest profitability among leading car manufacturers its production
facilities are located mainly in low-cost countries (China, India, the Czech Republic, Russia, Turkey and
Brazil) and its product mix includes largely small-sized vehicles.
0.0%
PSA makes around 70% of its sales on the European market, making it highly-exposed to the slump
in demand in this region. Sales therefore dropped in 2012 and the company haemorrhaged 3bn of
cash due to a high cost base with unused capacity. The subsequent return to profit is attributable to
the positive product and price mix resulting from the success of launches and from the pricing power
policy as well as reductions in fixed costs.
2.8%
Renaults entry level vehicles (Clio, Duster, Logan, Sandero) continued to drive overall performance,
accounting for 42% of 2014 sales volume.
The Renault group sold 2.71m vehicles in 2014. Dacia-branded cars drove volume sales, rising 10.4%
on annual average, since 2009.
PSA
Renault
7.4%
53.61 -1.1%
41.06
1.3%
1.8%
3.9%
13
TATA
Kia Motors
BMW
Geely
Tesla
2014
SALES
34.89
33.58
8.04
2.64
2.39
20102014
SALES
CAGR
19.5%
7.1%
7.4%
4.4%
128.8%
2014
OPERATING
MARGIN
9.1%
5.5%
11.0%
4.0%
-6.9%
2010-14
AVERAGE
OPERATING
MARGIN
8.9%
Tatas sales and profits have been constantly improving over the last five years, but this has been
primarily fuelled by British subsidiary Jaguar Land Rover while domestic business has been making
losses due to a slowdown in demand in the ailing Indian automotive industry coupled with increased
competition.
6.9%
The US and China have been the groups largest markets in terms of volume, followed by South
Korea and Europe.
Despite higher volume sales, the company recorded weaker performance in 2014, impacted by the
rise of the Korean Won and the fall of the Russian Rubble.
10.3%
BMW focuses exclusively on premium automobiles under just three brands, generating strong
brand value. The Mini brand has allowed it to increase its market share in the expanding small car
market. It has offset dropping demand in Europe and the US by exporting to emerging markets. The
company enjoyed record sales in 2014 with strong demand from China, Britain and the US.
6.5%
Geely had seen huge growth up until 2014. It should however be noted that this has not only been
fuelled by higher sales values and increased shares in operating subsidiaries but also thanks to
generous subsidies handed out by the Chinese government.
Sales slowed sharply in 2014 due to deteriorating political and economic conditions in its major
export countries, meaning exports fell by 50%. In China, Geelys sale also dropped by 16.8%. As a
result of this as well as due to an unrealised foreign-exchange loss at its Russian subsidiary, profit
also fell in 2014.
-18.1%
Having only launched its first vehicles in 2008, and following a high-price, low-volume business
model, sales have only just taken off and profit margins are yet to become positive due, not only to
fledgling sales but the continued high amount of investment required to develop the supercharger
network, improve batteries and expand the distribution network.
14
1. Market
Fundamentals
15
1.1. Overview
Key characteristics
89.73
million
17.4%
42.1%
42.5%
China
16
1.1. Overview
Key characteristics
This report analyses the leading manufacturing companies in the automotive industry.
Some of these are very large groups with operations including motorbikes (BMW) or truck
and bus manufacturing (GM). However, the focus of this report is on the passenger car and
light commercial vehicle market.
Not only did the global financial crisis and recession shake up the industry through
The recession accelerated structural numerous bailouts and acquisitions, but it also forced many carmakers to reinvent
themselves, rethink their organisation and take a careful look at their cost structure as well
change
as their strategy. They have also been pushed to raise standards of quality and productivity
while keeping down prices.
Developing markets have proved to be very fertile ground for growth in the past few years
and thus creating scale in such markets has become a major focus for many major
Slowing emerging markets hang
carmakers. These markets (particularly China, the worlds largest vehicle market) are
however now showing signs of slowing meaning carmakers may need to redirect a
over the industry
considerable part of their attention onto mature markets once again, where growth is less
about scale and more about on quality and innovation.
As the industry faces increasing costs due to environmental and safety regulations and
competition becomes more heated, major carmakers are focusing on manufacturing a
larger volume of passenger cars on global platforms so as to achieve economies of scale
and cost-savings via standardisation.
A growing web of joint ventures, alliances and partnerships is seen in the industry and with
players from other industries as carmakers are more and more willing to share platforms,
resources and technology in order to decrease R&D and fixed costs, ensure their
geographical presence and obtain economies of scale.
17
NON-CORE
ACTIVITIES
CORE
ACTIVITIES
DISTRIBUTION
FINANCING
MARKETING
ASSEMBLY
RESEARCH AND
DEVELOPMENT/DESIGN
18
Component
Outsourcing
Supplier
concentration
Glass parts
Exhaust system
Suspension
Braking
Steering
Seatbelts
Fuel systems
Audio/telematics
Interior parts
Electronics/Electrical
Engine
Transmission
Body/structure
19
Fleets sold to
companies
governments
rental agencies
mobility schemes
Around
20% of
sales
Around
80% of
sales
The majority of cars pass through retail automobile dealers to be sold to individuals. Although manufacturers like Tesla have
been making waves with attempts to sell directly to retail consumers, dealers have put up a fight to ensure they are not
leapfrogged in the distribution chain and direct automobile sales are prohibited in many parts of the world through legislation
such as dealer franchise laws in the United States. Fleet sales are made through dealers or directly from the manufacturer.
20
AUTOMOTIVE COMPANIES
PASSENGER
VEHICLES
LIGHT COMMERCIAL
VEHICLES (LCV)
MOTORCYCLES
HEAVY
COMMERCIAL
VEHICLES (HCV),
BUSES
21
Segment
Description
Example
Mini cars
Small cars
Medium cars
Large cars
Executive cars
Mercedes E class
Luxury cars
Sports coups
Multi-purpose vehicles
Renault Espace
Honda CR-V
22
Vehicle density
CIS, Turkey,
other Europe
25.3%
EU and EFTA
56.4%
NAFTA
64.9%
Japan and South
Korea
54.4%
Asia/
Oceania,
Middle
East
7.3%
Africa
4.3%
Central and
South
America
16.7%
23
Passenger cars
Light commercial
vehicles
TOYOTA
8,788,018
1,405,072
10,193,090
VOLKSWAGEN
9,766,293
128,598
9,894,891
GM
6,643,030
2,951,895
9,594,925
HYUNDAI
7,628,779
280,684
7,909,463
FORD
3,230,842
2,643,854
5,874,696
NISSAN
4,279,030
796,992
5,076,022
FIAT
1,904,618
2,812,345
4,716,963
HONDA
4,478,123
35,646
4,513,769
SUZUKI
2,543,077
473,633
3,016,710
10
PSA
2,521,833
395,213
2,917,046
11
RENAULT
2,398,555
363,414
2,761,969
Ranking
Company
Country
24
Market tier
EMERGING MARKET
MASS-MARKET
PREMIUM
SCALE
BRAND VALUE
DIFFERENCIATION
INNOVATION
Leaders
positioning
Profitability
Principal market
strategies
Source: Xerfi Global
25
Top 10 carmakers:
73.4%
Other carmakers
26.6%
26
2. Market Environment
and Prospects
27
PESTEL analysis
P
E
CONOMY
S
T
E
OLITICS
OCIETY
ECHNOLOGY
NVIRONMENT
EGISLATION
POSITIVE
NEGATIVE
Urbanisation
Cars as a status symbol
Infrastructure improvement
Car dependency
IMPACT
28
Key characteristics
Governments often step in when the economy lets the side down
The strategic importance of the automobile industry as a major source of direct and indirect
employment means it is rarely ignored by governments. Numerous examples of this were
seen during the recent financial crisis and subsequent recession, during which the American
government bailed out its car industry while EU states such as France, Spain, the UK and
Germany also set up initiatives to stir up demand to support national carmakers. This
protecting hand can also work against carmakers when it comes to expanding outside
national borders as tariffs, safety and environmental norms, certification and testing
requirements, luxury taxes, joint-venture or local part-sourcing regulations can be used and
abused to shield the domestic industry, blocking out outsiders.
Carmakers are also dependent on governments for alternative-fuel engine development,
whose success depends on the right recharging and refueling infrastructure, which can only
be established in collaboration with local and national authorities.
The car industry is cyclical in nature and depends on economic prosperity. Car sales have
globally recovered from the slump following the financial crisis. Improved finance conditions
are also helping to give sales a boost. Emerging markets have been an El Dorado for
carmakers over recent years although growth in the worlds hungriest car market, China,
seems to be slightly running out of steam. Nevertheless, mature market economies are
looking more positive, which indicates recovering demand for vehicles.
Developed and developing world societies have different needs with regard to vehicles. In
the developed world, including countries with traditionally high car dependence such as the
US, Canada or Australia, the trend is moving towards smaller cars offering lower profitability
and even away from traditional individual car ownership and in the direction of car-sharing
and mobility solutions combining car usage with public transport. On emerging markets,
urbanisation and increasing wealth has allowed huge sales opportunities on all parts of the
spectrum (entry-, mid- and premium level). However, vehicle infrastructure development on
such markets cannot necessarily keep up with demand and public transport is liable to
improve, limiting sales growth.
High-profile vehicle recalls due to defects or events such as that of VWs emissions scandal
can dent public confidence in the sector.
29
Key characteristics
competitive advantages
30
Focus on politics
11% of
Germanys
exports
4% of its GDP
2% of its
workforce
(841,000 jobs)
31
Focus on politics
TAFIFFS
JOINT-VENTURE REQUIREMENTS
INTERNATIONAL
EXPANSION
Government measures to protect domestic car industries of course have the downside of blocking out outsiders, thus limiting
international expansion. Car-making nations typically impose heavy tariffs on imports: the standard tariff for importing cars to
the US is 2.5% of their value while the European Union places a 10% charge on imported automobiles. Countries such as
China enforce considerable joint-venture requirements and local content rules to encourage carmakers to produce locally.
Emissions and safety requirements can also be used and distorted to prevent foreign cars from entering domestic markets.
32
Focus on politics
Sufficient
recharging and
refuelling
infrastructure
Research and
development
support
Source: Xerfi Global
It is all very well for carmakers to develop vehicles with alternative-fuel engines, but such vehicles require infrastructure to
recharge or refuel such as electric charging stations for electric vehicles or hydrogen sources for fuel-cell hybrid vehicles,
without which vehicles cannot be commercialised successfully. Such infrastructure requires support from local, national and
transnational authorities. Furthermore, given the high costs of research and development for such technology, carmakers also
tend to require assistance at the beginning of the learning curve before reaching scale. Government legislation and initiatives
(such as subsidies for eco-car purchases) can also determine whether demand is sufficient to warrant investment in
alternative-fuel vehicles, particularly during periods of low petrol prices, as is currently the case.
33
Focus on politics
120
100
80
5,3%
9,2%
17,1%
60
46,4%
40
20
22,0%
0
1995
Source: Xerfi Global with U.S. Bureau of Labor Statistics, latest data
2000
2005
2010
2014
Gasoline and motor oil expenses make up about half the costs incurred by vehicle ownership. Petrol prices shot up until mid
2014, making consumers increasingly interested in more fuel-efficient cars or engines powered by alternatives to gasoline, but
have since been on a downward tumble. This means that fuel-alternative vehicles have lost some of their economic interest
for consumers. Nevertheless, pressure to turn away from fossil fuel continues to be exerted by authorities and governments
for environmental and political reasons.
34
Focus on economics
7,5%
7,0%
6,5%
6,0%
5,5%
5,0%
4,5%
4,0%
3,5%
3,0%
2008
2009
2010
2011
2012
2013
2014
Source: Xerfi Global with the Board of Governors of the Federal Reserve System
35
Focus on environment
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
2010
2011
2012
2013
2014
36
Focus on environment
Customer expectations
Regulations
Environmental
regulations
Safety regulations
Connectivity
Stricter emission
regulations mean
carmakers must invest
in new powertrain
development as well as
weight-saving
technologies.
Stricter safety
regulations mean that
carmakers must
develop and fit stateof-the art technologies.
Increased interest in
telematics, infotainment
and autonomy requires
considerable
investment.
37
Focus on environment
but when it comes to the crunch, the industry remains fairly protected
Typical government position when it comes to choosing between economics and environment
ECONOMICS
ENVIRONMENT
38
Focus on society
Societal trends and attitudes towards cars vary from market to market
Societal trends and attitudes leading to variations in mature and developing markets
MATURE MARKETS
AGEING POPULATION
ATTITUDES ALTERED BY THE
RECESSION
DEVELOPING MARKETS
AUTOMAKERS MUST
ADAPT PRODUCTS TO
REGIONAL PSYCHES
ATTRACTED BY ADDED-VALUE
TECHNOLOGICAL FEATURES
The dichotomy between mature and emerging market demand is considerable in the automobile industry. As the recession
slowly fades in developed markets, ageing consumers are increasingly interested in value-adding technological advances such
as connectivity, fuel efficiency and safety. Meanwhile, emerging markets do not accept that developed-market models are
simply relocated to their regions. Tastes are not the same and vehicles often double as status symbols to a greater extent than
in mature markets. More importance is thus given to brand value in countries such as China and luxury cars have a great
appeal for the emerging group of the newly rich throughout developing markets.
39
Focus on society
units: horizontal axis = income per capita in dollars (purchasing power parity); vertical axis = index Gini (income
inequality, 0 represents total equality and 100 total inequality); size of bubbles proportional to population
55
Income inequality
50
45
Singapore
Turkey
40
Indonesia
35
Poland
Netherlands
30
Switzerland
25
United Arab
Emirates
Denmark
Sweden
20
0
10000
20000
30000
40000
50000
60000
70000
Source: Xerfi Global with World Bank and CIA World Factbook data
40
Focus on technology
ALTERNATIVE-FUEL
ENGINES
ELECTRIC
(electricity)
CONNECTIVITY
TELEMATICS
INFOTAINMENT
HYBRIDS
(gasoline, biofuels,
diesels)
VEHICLE-TO-VEHICLE
COMMUNICATION
VEHICLE-TOINFRASTRUCTURE
COMMUNICATION
41
Focus on technology
The connectivity market is set to expand quickly, but not selling prices
Estimated value of connected car technologies 2016
unit: %
unit: %
Safety
Entertainment
Vehicle management
Autonomous
Mobility management
Well-being
4,9%
2021
market
value:
122.7bn
8,8%
37,8%
10,7%
14,6%
23,2%
Safety
Entertainment
Vehicle management
Home integration
Autonomous
Well-being
Mobility management
0,1%
4,6%
5,8%
6,2%
40,2%
10,9%
2016
market
value:
41.0bn
32,3%
The market value of connected car technologies is expected to triple over the next 5 years, opening up opportunities for
differentiation and new digital revenue streams, and at the same time making higher investment of the essence. It remains to
be seen which pricing strategies carmakers will use for their connected car products and services. Options include flat fee
structures, a pay-per-use structure, or a mixed structure. In any event, it is however unlikely that selling prices can be pushed
up in line with investment, meaning that return on investment will be eroded.
42
Focus on technology
Automobile
General Industry
1 800
1 600
1 400
1 200
1 000
800
600
400
200
0
Japan
Germany
USA
UK
China
Brazil
India
Source: IFR
Robot and automation technology play a key role in automobile manufacturing, much more so than in other industries. Based
on 2013 data for several large economies, robot density in the automobile industry was on average 10 times higher than in the
general industry. Indeed, robot and automation technologies historically has often stemmed from research and development
initiatives by major carmakers or car parts suppliers, some of which still operate their own robot activities.
43
Focus on technology
Automotive industry
Electical/electronics industry
10
20
30
40
50
60
70
Source: IFR
44
Focus on technology
Automated driver
Traditional
Technology
New
Human driver
Owned assets
Traditional
Shared assets
Business model
New
45
2.2. Demand
100
20%
90
15%
80
70
10%
60
50
5%
40
0%
30
20
-5%
10
-10%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Source: Xerfi Global with OICA, *Xerfi Global forecast
Global vehicle sales declined considerably in 2008 and 2009 as the aftermath of the financial crisis hit with its spiral of higher
unemployment, a drop in consumer confidence, high fuel prices and tightening credit conditions, bringing down demand in
all main world markets. Sales have since followed an upward trend particularly thanks to emerging country growth,
government initiatives to save the industry and stimulate growth, pent-up demand and friendlier credit conditions, reaching
14.3% growth in 2010. In 2015, purchases are gaining momentum in the NAFTA area and Western Europe but have been
pulled down by considerable declines in South America, Eastern Europe and Russia and, most importantly, in China, which had
previously driven a large part of growth. As a result, 2015 growth is expected to sit at just 1,0%.
46
2.2. Demand
Global markets are uneven and volatile with emerging markets now slowing
The automotive industry remains uneven
and volatile on a regional basis due to
economic and socio-economic trends
but also infrastructure development,
customer requirements and government
regulations.
While Asia/Oceania/Middle-East was
previously considered an El Dorado,
propelling industry growth in the last
few years (mainly due to China) this
growth has slowed considerably from Q2
2014 to Q2 2015. Other markets such as
Central/South America, Russia and
Africa, which had seemed full of promise
when these markets started to emerge,
have also been decelerating.
Europe, on the other hand, has seen
negative growth over the longer term,
causing manufacturers to close factories,
but has picked up over the last year as
consumers become somewhat more
optimist about the economy. It remains
to be seen however if Volkswagens
emissions scandal will temper growth.
The NAFTA zone saw growth of 3.8%
from Q2 2012 to Q2 2015, due to a
recovering economy and pent-up
demand, low interest rates and falling
petrol prices, but this growth has slowed
of late to 0% from Q2 2014 to Q2 2015.
Asia/Oceania/Middle-East
Europe
NAFTA
Africa
Central*/South America
Russia
-50%
0%
50%
47
2.2. Demand
China
US
Japan
China
accounted
for 26.6%
of vehicle
sales in
2014
making it,
by far, the
worlds
largest
market.
Brazil
Germany
India
UK
Russia
France
Italy
0
10
15
20
25
48
2.2. Demand
60%
50%
40%
30%
20%
10%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015*
Demand for passenger cars shot up in China in past years, boosting the global industry thanks to its huge market size. However, Chinas
hunger for motorised vehicles is now slowing, initially because the Chinese government removed previous stimulus incentives (and even
replaced them with measures such as imposed quotas on new car registrations in order to control traffic congestion and air pollution),
and, more recently, due to slower economic growth as well as corruption crack-downs. As China has been a major growth driver and a
focus of major carmakers growth plans, its drop in demand has put a considerable spanner in the works for companies highly exposed
to the Middle Kingdom and are typically cutting back production and having to deal with high inventories. This in turn leads to increased
competition and price pressure, squeezing margins.
49
2.2. Demand
Other
0,2%
Other
7,9%
Executive
10,9%
Uppermedium
13,1%
Executive
11,8%
Small
33,0%
2005
Uppermedium
16,5%
Lowermedium
29,8%
Lowermedium
35,0%
2014
Small
41,7%
With question marks hanging over petrol prices and general post-crisis belt-tightening, consumer are increasingly attracted to
small cars for their value: they are not only cheaper to buy but offer lower fuel consumption. Manufacturers are responding to
this trend by increasing the range, features and performance of compact cars. It is expected that, in the medium-to-long term,
demand will be bi-polar: customers will choose either smaller, fuel-efficient cars or will opt for luxury cars. The medium-size
segment will account for the smallest share of the market.
50
2.3. Supply
100
30%
90
25%
80
20%
70
15%
60
10%
50
5%
40
0%
30
20
-5%
10
-10%
-15%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Source: Xerfi Global with OICA, *Xerfi Global forecast
Sales declined sharply in 2009, reflecting the rapidly deteriorating economic conditions and high inventory levels in mature markets
(Japan, the US and Europe). The marked decline in sales led to excess capacity in plants around the world, particularly in North America
and Europe. To give but a few example, Honda went from 100% NAFTA capacity utilisation in 2008 to 48% in 2009 while GM saw its
NAFTA capacity utilisation go from 85% in 2008 to a pitiful 37% in 2009. Meanwhile, in Europe, Frances overall capacity utilisation went
from 72% in 2007 to 53% in 2009. Production levels made a significant comeback in 2010 (+25.2%) to cater for pent-up demand, only for
growth to then be somewhat hampered by natural events (Great East Japan Earthquake and flooding in Thailand) in 2011. Since 2012
however, production has been slowing, seeing only 2.8% growth in 2014, in line with lower demand.
51
2.3. Supply
Location of production
China
US
Japan
Germany
South Korea
45.6 million
vehicles were
produced in
the first half
of 2015.
India
Mexico
Spain
Brazil
China
accounted
for 26.5% of
these.
Canada
France
Thailand
UK
Russia
10
12
14
52
2.3. Supply
Location of production
CAGR 2005-2014
Q2 2014-Q2 2015
China
Mexico
Indonesia
India
India
EU
Mexico
USA
Thailand
China
USA
Thailand
Japan
Japan
EU
Indonesia
-20%
-10%
0%
10%
20%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Over the last ten years, production has generally moved from traditional bases in Europe, North America and Japan to lower cost
regions. The aim has been to move production closer to expanding demand so as to match production and sales footprints, thereby
reducing currency exchange rate exposure and transportation costs but the shift has also been driven by lower labour costs, Within trade
blocks, such as NAFTA, EU, ASEAN and Mercosur, production has tended to move to the new Detroits: lower-cost locations within each
region. Nevertheless, this trend has been bucking of late as demand slows in low-cost regions and mature markets recover, meaning
some production is being brought back to Europe and the US. Automatisation is further boosting this. In the US, increased production is
additionally due to the shale gas revolution allowing lower fuel costs for manufacturing, making it an attractive industrial base once
again.
53
2.3. Supply
Steel
Fluids and lubricants
Plastics and composites
Copper and brass
Glass
Rubber
Aluminium
Other
Powder metal parts
Iron
1,0%1,0%
2,0%
0,4
0,3
0,2
0,1
7,0%
8,0%
0,5
29,0%
0,0
-0,1
8,0%
-0,2
9,0%
-0,3
15,0%
20,0%
-0,4
-0,5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
The car industry uses a tremendous number of materials to build cars, including steel (29%), rubber (20%), aluminium (9%),
plastic (8%), petroleum products (15%), copper (7%), glass and others. On average, these variable costs make up about half of
most automakers total cost structure. As a result, automotive makers can be tremendously impacted by any hike in raw
material prices, particularly steel. As internationally traded raw materials and partially processed commodities such as
automotive steel can often be sourced at cheaper prices in low-cost markets, this has provided an added incentive to relocate
production to emerging market bases. However, steel prices have been falling over the last few years, reducing this pressure.
54
1.4%
NAFTA
11.6%
6.0%
Europe/CIS
35.9%
5.7%
7.3%
0.6%
9.1%
1.9%
0.9%
Asia
Oceania
6.1%
1.8%
Central and
South
America
1.5%
55
Global exports
Global exports have recovered from the crisis and are increasing
Global car export value
unit: billion euros
550
500
450
400
350
300
250
200
150
100
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
56
Intra-regional trade
NAFTA
11.6%
Europe/CIS
35.9%
Asia
Oceania
6.1%
As carmakers look to better balance production with local demand, they have shifted their production sites closer to potential
consumers. Overseas production bases are then used to supply regional demand and reduce not only transportation costs but
also taxes and tariffs if such regions are in trade zones. It is expected that inter-regional imports from outside trade zones will
decrease while intra-regional trade, from low-cost pockets to the rest of the trade zone will intensify. For example, Nissan and
Volkswagen have established plants in Mexico to supply the NAFTA area while Suzuki has set up manufacturing facilities in
Hungary, from where it will produce for the European market.
57
Germany
Germany
Japan
Japan
Canada
USA
France
Canada
USA
South Korea
Belgium
UK
South Korea
Mexico
UK
Spain
Spain
Belgium
Mexico
France
0
20
40
60
80
50
100
150
Germany and Japan have had a long reign as leading automobile exporters. Not only have they stood at the top of the list for
the last decade but they are head and shoulders above the rest. The US overtook Canada in 2007 to become the worlds third
largest exporter. France has lost considerable ground over the last ten years, with much capacity being rationalised and
production being relocated to lower-cost neighbour Spain. Korea has seen its exports expand thanks to Hyundais growing
sales. Lower-cost countries within regional trade zones are often used as production bases and therefore register high exports.
Such is the case of Mexico, NAFTAs lower-cost zone.
58
USA
USA
UK
China
Germany
UK
Italy
Germany
France
France
Spain
Canada
Canada
Belgium
Belgium
Italy
Australia
Australia
Netherland
Spain
0
20
40
60
80
100
120
20
40
60
80
100
120
The USA has dominated car imports in volume for over a decade, with most of its imports coming from Canada, the European
Union, Japan and, to a lesser extent, Mexico and South Korea. China has shot up the ranks of importers, going from 18th place
in 2005 to second place in 2014 as a result of rocketing demand. Russia also moved up to 9th in 2012 as demand has
increased considerably without a corresponding increase in domestic production but has since dropped dramatically to 14th in
2015 due to both trade embargos as well as slowing demand due to economic difficulties.
59
3. Corporate Strategies
and Competition
60
New entrants
++
Suppliers
++
Governments
++
+++
Rivalry
Substitutes
+
Customers
++
61
Competitive rivalry
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
The automobile market is no longer the playground of long-established Western manufacturers. The 1980s saw the arrival
on the world scene of Japanese carmakers such as Honda and Toyota, which have been growing their global market shares
ever since. In recent years, South Korean groups, namely Hyundai, have also been encroaching on markets previously
reserved for American and European firms.
On a regional basis, the auto industry has traditionally seen oligopolies, but this is becoming less and less the case with
most carmakers endeavoring to expand their international footprint to ensure their presence in all regions.
The race for new automotive technology, particularly for fuel-efficiency and alternative engines, is fierce and costly, putting
additional pressure on car companies to invest in areas which may take time to reap rewards. Furthermore, the increasing
role of infotainment and telematics systems makes innovation all the more important and rivalry to achieve a competitive
advantage is heated.
Due to these factors, rivalry in the global automotive industry is intense and car sales generate fairly low returns because of
strong price competition.
62
Consolidation
INCREASE SCALE
AND REDUCE
OPERATING
COSTS
GAIN ACCESS TO
EXPANDING
MARKETS AND
INCREASE
GLOBAL
FOOTPRINT
ENTER NICHE
MARKETS (I.E.
PREMIUM)
INDUSTRY CONSOLIDATION
Source: Xerfi Global
63
Customers
Carmakers must differentiate what they offer from what their competitors offer
Services
Products
Prices
Dealerships/Network
Quality
Financing
Innovation
Fuel economies
Replacement parts/Warranties
Design/Appeal/Brand image
64
New entrants
Old players are invading others markets and new actors are emerging
New entrants
++
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
Barriers to entry into the industry are substantial. Start-up capital requirements are high, brand value a major factor for
sales and technology know-how and minimum economies of scales must be gained almost immediately to ensure
competiveness. The risk of new carmakers coming onto the scene is therefore low but cannot be ruled out, as illustrated by
all-electric vehicle maker Tesla Motors founded in 2003.
Furthermore, the risk of existing players entering competitors territory is high. In the past, no one could have believed that
the Big Threes (GM, Ford, Chrysler) domination would be challenged. However, the establishment of Hondas first plant in
Ohio, US, marked the beginning of a new era in which the emergence of foreign competitors with the necessary capital and
technologies began to undermine the market share of US companies.
Carmakers are overcoming entry barriers to foreign markets through mergers and acquisitions and strategic alliances and
partnerships, jeopardizing the traditional ranking of regional leaders to some extent. Of course, this works both ways, as
such collaboration is designed to also strengthen the position of both the local and foreign party.
As automobile-specific technology develops and becomes a determining factor for demand and differentiation, new actors,
possessing specialist know-how, are coming onto the scene, increasing competition and accelerating the pace of change of
innovation. Companies providing connectivity and artificial intelligence now have considerable influence on carmakers. The
development of the Google driverless car is such an example of a company outside the traditional realm offering a service
that would add huge value to a vehicle, putting car manufacturers in danger of becoming mere providers of a support for
such technology.
65
Customers
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
Although price sensitive, private customers have relatively little buying power as they do not purchase major volumes.
Nonetheless, due to the fairly standardised nature of the industry and the low switching costs associated with choosing a
competitors models, as well as the option of hanging on to older vehicles instead of buying new, clients can significantly
influence pricing decisions. Furthermore, it seems that consumers are becoming less faithful to brands and seeing cars
more as commodities while, at the same time, becoming more demanding with regards the inclusion of equipment such as
infotainment and are expecting high-end features to be standard.
In an attempt to gain client loyalty, carmakers try to differentiate through design and other functional innovations, as well
as offering a complementary range of services and warranties.
Businesses and car rental companies purchase large volumes, and thus have a certain degree of bargaining power.
Information about specifications, prices, quality and performance are increasingly accessible for customers, giving them
increased bargaining power. Meanwhile, automakers are also collecting more customer and car data via telematics and
sensors, but much of this information is yet to be put to use.
66
Customers
The Internet allows carmakers to reach clients directly, but only to an extent
Traditional distribution chain vs. emerging distribution chain
Manufacturer
Dealer
Internet
Customer
Direct sales to customer is made
difficult due to legislation and
logistics
Customer
Manufacturer
Dealer
Source: Xerfi Global
The automotive distribution model has been traditionally dominated by a unavoidable relationship with dealerships. Indeed, laws in the
US and elsewhere protect dealerships exclusive right to sell new cars. With the emergence of the Internet, however, automobile
manufacturers have begun setting up virtual showrooms and redefining, without fully circumventing, the role of dealerships. The
advantages of the Internet are particularly relevant in the information phase (comparison of different vehicles, quotations) as well as for
vehicle customisation selection and financing administration. Given the high cost of vehicles and the customers typical desire to test
before purchasing, as well as inventory issues, the dealership still serves a purpose as a physical point of sale. Carmakers who have tried
to go beyond this point to skip dealers have met strong resistance.
67
Substitutes
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
Alternative means of transportation such as public transport or bicycles as well as car-sharing can be considered substitutes
to the individual purchase of vehicles.
The threat of alternatives varies from region to region depending on the travel distances involved and the availability of
public transport. In regions where public transport is not highly developed and distances are long, the switching costs
associated with using a different mode of transportation are high in terms of independence, convenience, and utility (such
as luggage capacity).
Conversely, in urban areas with high population densities, more alternatives are available (mass transit, bicycles, etc.) and
are often preferred by consumers and supported by government initiatives. Car-sharing, such as the autolib electric carsharing service in Paris, or car-pooling are also increasing in popularity. Such alternatives shift the perception of the car from
being a product purchased by individuals to a service available on demand.
Volatile oil and high ownership prices have a considerable influence on consumers' decisions to seek alternatives.
68
Substitutes
INCREASING DEMAND
SATURATION POINT
REDUCING DEMAND
WITH MORE INTEREST
IN ALTERNATIVES
VEHICLE DENSITY
Source: Xerfi Global
As an economy matures, car sales tend to expand as a result of increasing wealth and urbanisation. However, as vehicle
density subsequently increases, a lack of infrastructure (road and car parks) as well as the increasing expense of owning a car
(insurance, petrol, storage, road tolls) mean that private car ownership can quickly become a burden. For these reasons, there
is an increasing trend towards car-sharing and intelligent mobility concepts which provide users with the option of combining
several means of transport to best reach their destination. In turn, car sales are reduced while new doors open into the world
of mobility, which is being explored by carmakers like Daimler in high-density markets such as European cities.
69
Suppliers
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
There are several layers of actors in the supply chain: tier 3 suppliers who supply raw materials and commodities, tier 2
suppliers who produce subsystems, and tier 1 suppliers who produce whole systems and sell directly to carmakers.
The more specialised and strategic the supplier, the more the balance of power tips in its favour. In the case of lessspecialised suppliers, carmakers can pick and choose their suppliers and switch from one to the other with little difficultly.
With the automobile industry being more consolidated than the car part industry, many suppliers rely on just a few
automakers to buy the bulk of their products and are greatly impacted if the automaker decides to switch.
The relationship between carmakers and their suppliers, previously more in carmakers favour, has changed significantly
over the past decade. Suppliers that originally provided ready-made parts have moved towards greater customisation,
tailoring products to the needs of specific companies while shifting towards the supply of complete functions (systems or
modules) rather than individual components and the share of value that suppliers provide is on the up. The relationship is
set to change again in the near future, as the increasing standardisation and globalisation seen in the car-making industry
will call for international mega-suppliers, pushing out small, regional suppliers.
Tech giants, such as Apple or Google, are becoming valuable suppliers (as well as potential competitors) as more
technology is incorporated into cars. Carmakers must ensure that such suppliers do not end up completely controlling incar operating systems and value and profits fall into their hands, leaving carmakers to simply provide the packaging for
the operating system as has been seen in the PC and handset industries.
70
Suppliers
Carmakers
have
long
been
outsourcing innovation to their
suppliers so as to reduce the burden
of investment. While carmakers
Hyundai and Toyota spent just 2.4%
and 3.7%, respectively, of revenues on
R&D in 2014, suppliers Valeo and
Denso spent 8.9% and 9.2%,
respectively, over the same period.
It is therefore increasingly common
for suppliers to invest more heavily in
research and development than
carmakers
themselves,
putting
innovation, technology, engineering
and thus bargaining power into their
hands.
CARMAKERS R&D
RATIO
SUPPLIERS R&D
RATIO
2.4%
8.9%
3.7%
9.2%
71
Suppliers
who are now gaining an innovative and value-added edge over carmakers
Automotive suppliers proportion of value added to worldwide automobile manufacture
unit: %
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
1985
1990
1995
2000
2005
2010
2015
The proportion of value added provided by automobile suppliers has shot up going from 56% in 1985 to around 82% in
2015. Carmakers are therefore assuming more of a role as assemblers and less as manufacturers and have a huge dependence
on the expertise of their suppliers. This shift in power has been exacerbated by the fact that as automobile manufacturers
have expanded abroad over the last decade, they have encouraged suppliers to expand with them. This means that suppliers
are now more international and, additionally, more concentrated, leading to the formation of mega-suppliers, which can exert
considerable power over their clients.
72
Governments
Suppliers
++
Governments
++
+++
Rivalry
Customers
++
Substitutes
+
The automotive industry is large enough and vital enough in terms of employment to attract considerable attention from
governments.
Given the stakes involved in terms of employment, such attention is usually to carmakers benefit. The bail-outs of
automobile makers during the financial crisis and industry-specific initiatives, such as the car scrappage schemes to
encourage demand, demonstrate that governments are prepared to prop up the car-making industry.
Nevertheless, governments can wield control over carmakers, particularly when it comes to supporting their own national
industries in the face of foreign competition. The best example of this is China, where the governments action
determines not only its domestic state-owned industry but also the room to manoeuvre that foreign carmakers have.
Most other countries apply heavy tariffs to foreign cars, thus discouraging sales for non-local cars.
Government regulations, such as emissions and fuel economy regulations as well as compulsory safety equipment, are
becoming stricter and more expensive to comply with, meaning manufacturers must sell greater volumes to amortise
increasing costs. Nevertheless, it is also true that when it comes to the crunch and governments must choose between
protecting the industry and protecting the health of the environment, it is the industry which typically comes out on top.
Lobbying by government to delay or water down environmental regulations concerning automobiles is not uncommon.
73
Governments
74
1 300
1 200
4.5%
9.2%
1 100
10.9%
1 000
900
12.3%
800
700
600
500
2010
2011
2012
2013
2014
75
Cars
LCV
Toyota
Volkswagen
General Motors
Hyundai
Ford
Nissan
Fiat-Chrysler
Honda
PSA
Renault
BMW
SAIC
Geely
Tata
Tesla
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
76
Volkswagen
Toyota Motor
GM
Ford
FCA
Honda
Nissan
SAIC
Hyundai Motor
PSA
Renault
TATA
Kia Motors
BMW
Geely
Tesla
0
50
100
150
200
250
77
9%
Intense competition means that the automobile industry reports relatively low profits, which
have hovered just over 5% on average over the last 5 years. Considerable investment in
globalisation as well as compliance with stringent fuel emission standards and fuel efficiency
requirements represent considerable structural costs for companies, weighing down on their
profits. From 2014, the deceleration in the Chinese market, in which companies have invested
heavily, has also led to a drop in profits for companies exposed to this market.
8%
7%
6%
-2.8%
3.3%
16.8%
-9.1%
5%
4%
3%
2%
2010
2011
2012
2013
2014
78
Profitability
BMW
Hyundai Motor
TATA
Kia Motors
Geely
Toyota Motor
Volkswagen
Nissan
Honda
Ford
SAIC
GM
FCA
Renault
PSA
Tesla
-20%
-15%
-10%
-5%
0%
5%
10%
15%
79
Geographical footprint
Company
Home
market
North America
Europe
Asia-Pacific
TOYOTA
NISSAN
HONDA
HYUNDAI
TATA
SAIC
Africa/Middle
East/Other
GEELY
G.M.
FORD
TESLA
BMW
VOLKSWAGEN
PSA
RENAULT
FCA
Latin America
Source: Xerfi Global with companies. Data is approximate as regional reporting differ s between companies
80
Capex
Tesla
Honda
Toyota
Tata Motors
FCA
Geely
BMW
Renault
PSA
Volkswagen
General Motors
Nissan
Ford
Hyundai
SAIC
0%
5%
10%
15%
20%
25%
30%
35%
81
Performance analysis
COMPANY
Volkswagen
Toyota Motor
GM
2014 SALES
202.46
194.01
116.57
2010-2014
SALES CAGR
12.4%
9.4%
3.6%
2014
OPERATING
MARGIN
6.3%
10.1%
2.6%
2010-14
AVERAGE
OPERATING
MARGIN
6.2%
Volkswagen sold over 10m cars worldwide, spanning from passenger cars
to heavy commercial vehicles. On a geographical basis, revenue growth
was chiefly fuelled by Asia-Pacific and North America.
Deliveries in all of its main brands have gone from strength to strength.
However, the Audi brand was the fastest growing, with the pace of volume
sales rising 12.9% on annual average over the 2010-2014 period.
6.4%
4.2%
The decrease in petrol prices over the past years has reignited demand
for SUVs and pick-up trucks in North America, giving GM a revenue boost.
Additional tailwinds came from China where the group runs operations
through a multitude of joint ventures so as to develop vehicles that
respond to the needs of Chinese drivers. GM and it partners sold 3.5m
cars in China in 2014 second only to the Volkswagen group which
delivered 3.68m units.
82
Performance analysis
COMPANY
Ford
FCA
Honda
Nissan
2014
SALES
107.71
96.09
94.63
80.76
2010-2014
2014
2010-14 AVERAGE
SALES
OPERATING
OPERATING
CAGR
MARGIN
MARGIN
2.8%
27.9%
10.5%
6.7%
2.7%
3.5%
5.0%
5.2%
4.9%
Growth has been somewhat hampered due to a loss in US market share, a drop in
sales in Europe and South America combined with a weak presence in emerging
markets as well as an increase in the cost of goods that has not been transferred to
customers. Ford also suffered from considerable recall costs in 2014.
3.9%
Sales have been following an upward trend in the last five years primarily due to
Chrysler's sales in the consolidated accounts. Fiat hit the jackpot with its acquisition
of Chrysler, whose strong sales in the US have helped it to weather the European
slump. Profit slowed in 2013 and 2014, mainly due to costs related to purchasing
shares of stock from the UAW Retiree Medical Benefits Trust and higher recall costs.
5.4%
Net sales picked up in 2012 after dropping to a low in fiscal 2011 due, firstly, to
temporary supply chain disruptions caused by the Great East Japan Earthquake and
the floods in Thailand and, secondly, sluggish economic conditions in Europe and
the US and slowed growth in Asia. They have followed an upward trend since then
thanks to strong sales in Japan and the US, as has profit, with the exception of a
drop in operating profit in 2014 when teething problems at a new plant in Mexico
dented sales and profit in the US.
5.5%
In recent years, Nissan has enjoyed strong revenue growth in the US and China
they were the groups largest markets in 2014, accounting for 26.1% and 23.0%
respectively of total sales volume.
Over five years, Nissan has increased its global presence, encompassing a 6.2%
share of the global car market in 2014, compared to 5.8% in 2010.
83
Performance analysis
With car mix skewed towards small cars, Hyundai is very cost-efficient
Key performance indicators and main growth drivers of leading global carmakers
units: billion euros, compound annual growth rate (CAGR) of sales in percentage, operating profit as a percentage of sales
COMPANY
SAIC
Hyundai
Motor
PSA
Renault
TATA
2014
SALES
20102014
SALES
CAGR
2014
OPERATING
MARGIN
76.17 19.7%
63.64
7.4%
53.61 -1.1%
41.06
1.3%
34.89 19.5%
2.4%
8.5%
1.8%
3.9%
9.1%
2010-14
AVERAGE
OPERATING
MARGIN
4.4%
While sales have seen continued growth over the last five years, profit has been dropping
since 2011 due to increasing competition from local rivals and a slowing Chinese economy
and this has been exacerbated in 2015 with its joint ventures with General Motors and
Volkswagen having to cut car prices to rev up sales amidst Chinas huge economic
deceleration.
9.4%
Hyundai has recorded the highest profitability among leading car manufacturers its
production facilities are located mainly in low-cost countries (China, India, the Czech
Republic, Russia, Turkey and Brazil) and its product mix includes largely small-sized vehicles.
0.0%
PSA makes around 70% of its sales on the European market, making it highly exposed to
the slump in demand in this troubled region. Sales therefore dropped in 2012 and the
company haemorrhaged 3bn of cash due to a high cost base with unused capacity. The
subsequent return to profit is attributable to the positive product and price mix resulting
from the success of launches and from the pricing power policy as well as reductions in fixed
costs.
2.8%
Renaults entry level vehicles (Clio, Duster, Logan, Sandero) continued to drive overall
performance, accounting for 42% of 2014 sales volume.
The Renault group sold 2.71m vehicles in 2014. Dacia-branded cars drove volume sales,
rising 10.4% on annual average, since 2009.
8.9%
Tatas sales and profits have been constantly improving over the last five years, but this has
been primarily fuelled by British subsidiary Jaguar Land Rover while domestic business has
been making losses due to a slowdown in demand in the ailing Indian automotive industry
but coupled with increased competition.
84
Performance analysis
COMPANY
Kia Motors
BMW
Geely
Tesla
2014
SALES
33.58
8.04
2.64
2.39
20102014
SALES
CAGR
7.1%
7.4%
4.4%
128.8%
2014
OPERATING
MARGIN
5.5%
11.0%
4.0%
-6.9%
2010-14
AVERAGE
OPERATING
MARGIN
6.9%
The US and China have been the groups largest markets in terms of volume, followed by
South Korea and Europe.
Despite higher volume sales, the company recorded weaker performance in 2014,
impacted by the rise of the Korean Won and the fall of the Russian Rubble.
10.3%
BMW focuses exclusively on premium automobiles under just three brands, generating
strong brand value. The Mini brand has allowed it to increase its market share in the
expanding small car market. It has offset dropping demand in Europe and the US by
exporting to emerging markets. The company enjoyed record sales in 2014 with strong
demand from China, Britain and the US.
6.5%
Geely had seen huge growth up until 2014. It should however be noted that this has not
only been fuelled by higher sales values and increased shares in operating subsidiaries
but also thanks to generous subsidies handed out by the Chinese government.
Sales slowed sharply in 2014 due to deteriorating political and economic conditions in its
major export countries, meaning exports fell by 50%. In China, Geelys sale also dropped
by 16.8%. As a result of this as well as due to an unrealised foreign-exchange loss at its
Russian subsidiary, profit also fell in 2014.
-18.1%
Having only launched its first vehicles in 2008, and following a high-price, low-volume
business model, sales have only just taken off and profit margins are yet to become
positive due, not only to fledgling sales but the continued high amount of investment
required to develop the supercharger network, improve batteries and expand the
distribution network.
85
SWOT analysis
Leaders are struggling to restore trust after a web of recalls and legal issues
SWOT analysis of leading global carmakers
COMPANY
STRENGTHS
Volkswagen
Toyota Motor
GM
86
SWOT analysis
FCA
Honda
Ford
STRENGTHS
87
SWOT analysis
STRENGTHS
Nissan
SAIC
Hyundai
Motor
PSA
88
SWOT analysis
STRENGTHS
Renault
TATA
levels
of
research
and
Low
development
Highly dependant on Jaguar Land
Rover to keep financials out of the red
Poor marketing on the Indian market
Little investment made in Jaguar
international
business,
Expanding
including via the expansion of its
manufacturing footprint.
Cutting sales and production targets for
China
Kia Motors
89
SWOT analysis
BMW
STRENGTHS
Geely
Tesla
90
GLOBAL MARKETING
POSITIONING
CARMAKERS
KEY FOCUSES
INNOVATION
Connectivity/Autonomy
Fuel-alternative engines
Mobility
91
Nissan will start production of its NP300 Frontier pick-up at Renaults facility in Crdoba, Argentina where a
common platform will also produce a pick-up truck for Renault and another for Mercedes.
Panasonic and Tesla sign an agreement for cooperation on the construction of a large-scale battery
manufacturing Gigafactory plant in the US.
Toyota, Nissan, Honda and Mitsubishi launch Nippon Charge Service, a joint venture that will see the
development of charging stations for electric-powered vehicles (including plug-in hybrids) across Japan.
GLOBAL MARKETING
POSITIONING
Nissan and Daimler are building joint facility in Aguascalientes. The plant will produce jointly developed Infinitiand Mercedes-Benz-branded premium compact vehicles starting in 2017-18.
SAIC-GM-Wuling, the joint venture between GM, SAIC and Wuling Motors in China, are setting up
manufacturing operations in Indonesia. Plans are to produce Wuling-branded vehicles at a facility that will be
built close to the capital city.
The PSA/Dongfeng joint venture sign an agreement with the city of Chengdu for the construction of its fourth
production facility in China. It should be completed by 2016.
INNOVATION
Audi, BMW and Daimler acquire HERE, Nokia Corporations mapping and location services business. This move
comes as the three carmakers intend to develop cloud-based maps and other mobility services for the
automotive industry.
Audi is working with Baidu and Huawei to enhance car connectivity features in China. Audi has teamed up with
Huawei Technologies to develop an Asia-specific LTE module. Audis partnership with Baidu involves iOS- and
Android-based platform integration between Audi cars and Baidu CarLife, a service similar to Android Auto and
Apple CarPlay.
PSA and Bollor Group sign a strategic cooperation agreement on developing shared mobility solutions,
including car-sharing schemes using conventional and electric vehicles.
92
Product quality
Increased customer
satisfaction
A FOCUS
ON
QUALITY
Improved cosmetic and
technical design
The financial crisis has changed the mindset of both manufacturers and consumers. Manufacturers have come to realise that,
particularly on saturated markets, the easiest way to generate profit margins is no longer hungrily through volume, but with a
greater focus on product quality and cost efficiency, even at the risk of losing market share. This is all the more true as
regional markets become increasingly erratic. At the same time, customers are more value-orientated. As a result,
manufacturers are focusing on luring in customers through improved design, reducing recalls and, therefore, increasing
customer satisfaction and brand image. With such an approach, carmakers are aiming for a greater degree of stability, so as to
better manage capacity and costs.
93
Global platforms
A move towards global platform architecture for cost and time savings
Advantages and disadvantages of the use of global platforms
ADVANTAGES
DISADVANTAGES
With cost pressures coming from regulations and heated competition, manufacturers are looking to reduce costs and cater to consumer
preferences for more segmented vehicles by using platforms and modularisation, improving product commonality. Carmakers must
ensure that the number of units produced per platform remains as high as possible so as to benefit from economies of scale and costefficiency. Major players are therefore rationalising their range of platforms at a global level and are simultaneously looking to diversify
the models each platform produces. Furthermore, carmakers are increasingly turning to platform-sharing with competitors. This trend
allows huge cost and time savings but also imposes the task of finding ways to differentiate between models built on a common
platform so that sales are not cannibalised, offsetting the advantages of platform sharing. Manufacturing risk is also concentrated,
meaning that recall numbers will be magnified in the event of a defect.
94
Standardisation
STREAMLINE INVENTORY
MANAGEMENT
STANDARDISATION
REDUCED MAINTENANCE
COSTS FOR END USERS
MEGA-SUPPLIERS
FAVOURED TO PRODUCE
HIGH VOLUMES
SMALL, SPECIALISED
SUPPLIERS PUSHED OUT
OF SUPPLY CHAIN
So as to cut costs and thereby increase margins, carmakers are turning to common component-based production models.
With such standardised models, the range of different components is reduced. The benefits are manifold for both the
manufacturer and end user; the cost and time spent on vehicle production can be lowered, inventory management
streamlined and vehicle maintenance costs brought down. Risk of supply chain disruption is also reduced as the standardised
parts are easier to come by than specialised parts. This approach has knock-on effects for suppliers. Only the largest of
suppliers can produce the high volumes required, pushing smaller, more specialised suppliers out of the supply chain.
95
Global platforms
unit: number
unit: number
25
4,0
3,5
20
3,0
2,5
15
2,0
10
1,5
1,0
0,5
0,0
2004
2009
2014
Source: FCA (average across top 10 global OEMs, platforms that produce at least
2,000 cars a year)
2004
2009
2014
Source: FCA (data from FCA, Ford, GM, Honda, Hyundai, PSA, Renault/Nissan,
Suzuki, Toyota, VW)
Carmakers are consolidating the number of platforms they manufacture on. Ford, for example, had 27 global platforms in
2007, 12 in 2015 and plans to reduce this to 12 in 2016, with an eventual target of 8. This is in line with the general industry
trend: while the industry average was 22 in 2004 and 21 in 2009, it became 18 in 2014. The number of different car bodies
produced on a platform is simultaneously increasing, reaching 3.3 in 2014. Volkswagen is taking this a step further with its
MQB system, which is a modular architecture system that will underpin its Audi, VW, Skoda and Seat models and should
eventually replace its previous array of platforms.
96
Multi-brand strategy
EMOTIONAL
High degree of
part
standardisation
and platform
sharing
Vorsprung durch
Technik**
Auto Emocin
The Sporting
Grand Toure
VALUE
PRESTIGE
Aus Liebe zum
Automobil*
Simply Clever
RATIONAL
Source: Xerfi Global with Volkswagen investor presentations; literally meaning * Out of love for cars; ** Ahead through technology
Volkswagen sells its cars under numerous brands: Volkswagen, Audi, Skoda, SEAT, Bentley, Lamborghini, Bugatti, Scania and
Porsche. In this way, it hedges its bets by covering a wide range of niches and customer segments and enjoys scale benefits.
So as to avoid cannibalisation it attempts to differentiate among its huge portfolio of brands by focusing on transmitting clear
brand values and a different personality to each brand. The group sells cars that have a high degree of standardisation at
totally different prices, due to its ability to differentiate them through design and successful brand management. For instance,
the groups most sold brands (Audi, Skoda, Seat and Volkswagen) are manufactured on the same platform and have a fairly
high degree of internal part standardisation.
97
units: billion euros; operating margin over net revenue; net profit over total shareholders equity
Net
profit
2013
Operating
margin
ROE margin
2014
Toyota
5.6%
8.0%
2013
BMW
2014
10.3%
15.8%
98
Connectivity
Customer
loyalty
Entertainment
Road
safety
Information
Vehicle
connectivity
Revenuegenerating
add-ons
Communication
Vehicle connectivity hardware, software and protocols are constantly being applied to new fields so as to provide users with
infotainment (information and entertainment) systems, telematics (for vehicle health information, trip tracking and geofencing), vehicleto-vehicle communication (for road safety), vehicle-to-infrastructure and in-vehicle Wi-Fi for portal access, among other things. Such
technology is typically accessed via in-built hardware and/or smartphones. It is estimated that around 20% of vehicles sold in 2015
include embedded connectivity and the global market volume is expected to double from 2015 to 2020, opening up a new source for
added value for carmakers. Connectivity can also encourage customer loyalty as switching costs can be incurred when changing from
one makers system to the others and, additionally, allows customer data collection. Furthermore, connectivity allows extra revenue to
be generated through in-car advertising.
99
35%
The contribution of
electronic systems to
automobile innovations
and new features.
90%
Source: Xerfi Global with PWC
100
Sales
Sales grow
Sales peak
Launch of new
model
Launch of updated
model
Time
Like all products, vehicles go through a lifecycle. After their initial launch, sales then grow until reaching a peak, after which
they drop. A few decades ago, car models tended to last around 8-9 years. With rapidly evolving technology, this is no longer
the case. Vehicle lifecycles now last around 2-3 years before being considered obsolete. At this stage, carmakers have the
option of launching a redesigned model. At present, carmakers are generally focusing on bringing out updated models with
improved fuel efficiency or with hybrid engines. As software becomes more vital, the pace of change in products and feature is
likely to accelerate further.
101
Car-sharing
30 000
25 000
20 000
15 000
10 000
5 000
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
102
Mainstream OEMs
150
Premium OEMs
The industrys capex and research and development requirements continue to increase,
particularly due to environmental and safety requirements, as well as customer expectations
regarding connectivity, which need to be met to ensure a competitive advantage.
130
110
90
70
50
30
10
-10
2010
2011
2012
2013
2014
Source: Xerfi Global with FCA; (*FCA, Ford, General Motors, Honda, Hyundai, Kia, Nissan, PSA, Renault, Toyota, Volkswagen, BMW, Daimler)
103
suggesting that a new wave of alliances and mergers may be on the horizon
Average vehicle development costs
unit: %
Vehicle tooling
Powertrain R&D
Powertrain tooling
Vehicle R&D
Other
15%
5%
Cross-shareholding
INTEGRATION
5%
35%
Source: FCA
Given the increasing costs required to comply with stricter environmental and safety requirements as well as greater customer
demands which are pushing up required research and development and capex, it is highly likely that carmaker will increasingly
share the burden of investment via alliances, co-operation, and mergers and acquisitions with competitors but also with
suppliers and tech new entrants. The sharing of research and development (which makes up a huge 40% of vehicle
development costs) as well as tooling investments and plant utilisation and other synergies would allow large cost savings to
be made, thus generating higher margins.
104
ALTERNATIVE-FUEL ENGINES
ELECTRIC
(electricity)
HYBRIDS
(gasoline, biofuels,
diesels)
Volatile petrol prices and environmental concerns have been spurring interest in alternative fuels for some time and all major carmakers
have found themselves caught up in the technological race to create vehicles with alternative-fuel engines. The challenge lies in creating
engines with vastly different powertrains and operating methods that are affordable yet have sufficient battery life. With currently
existing technology, electric vehicles are more suitable for short-distance mobility needs, which corresponds to urban area profiles, while
hybrids can be used for longer-distance travel. Currently low petrol prices takes some of the heat off the race but the uncertainty over
how long prices will stay low will last means alternative-fuel vehicles remain a priority. GM, for example, announced in October 2015 that
it would partner with LG to develop a battery for its planned Chevrolet Bolt electric car, despite falling petrol prices.
105
PRODUCTION
SALES
OVERLAP
LOWER-COST LABOUR
REGIONAL
EXPORTS
(i.e. cars
manufactured in
China can be
exported to other
parts of Asia)
Carmakers have been attracted by the huge growth markets available in emerging countries and have been establishing operations in
such countries, rather than relying purely on exporting, over the last few years. Being on site offers numerous advantages. Production is
typically cheaper due to lower labour costs and products can be more easily adapted to local tastes. Producing locally is also often a
condition of joint-venture agreements with local manufacturers, who in turn help with market access. Unit prices are also brought down
as tariffs and transport costs are done away with and, furthermore, products can be put on the market more quickly. Foreign production
sites can then be used to export regionally, which is particularly attractive in free-trade zones. Nevertheless, as emerging markets are
now slowing, it remains to be seen whether carmakers have overinvested.
106
GM International
Operations sales dropped
slightly in 2014 and given
Chinas slowdown, the
group may have to brace
itself for further
deceleration in the near
future.
2012-2013
GM International Operations
GM North America
GM Europe
GM South America
-5%
0%
5%
10%
107
and are therefore readjusting their position, while keeping their options open
Faced with slowing demand in markets
in which they have heavily invested, such
as China, Brazil or Russia, carmakers have
been taking various measures. These
include putting the brakes on planned
capacity expansion, reining in existing
capacity and reducing costs by cutting
factory shifts and bonuses and
attempting to safeguard margins by
selling more higher-end cars.
In China, in which the majority of
carmakers
have
invested
heavily,
carmakers have been cutting their
official selling prices or offering
discounts. Despite suspicions of pricefixing (meaning that Chinese customers
are paying a premium), carmakers
indicate that reducing prices will weigh
heavily on their margins. Thus, carmakers
are attempting to balance margins by
seeking out ways to reduce costs by
taking an array of measures. Toyota for
example is planning on building a new
production line using the Toyota New
Global Architecture, which should allow
savings of up to 20%. Nissan and Honda
are also planning to achieve cost
reductions
by
updating
plants,
improving architecture, modularising
production platforms and sharing spare
parts.
Faced with
slowing
demand on
certain
emerging
markets,
carmakers
are
Attempting to sell
more high-end
cars with higher
margins
108
4. Case Studies
109
Stricter environmental
regulation
More competitive
market place
High
connectivity/autonomy
investment
requirements
Volkswagen is found to be
using software to falsify diesel
emission data during testing
Tarnished reputation
for the company and
German industry
110
Hyundai enters the premium market in an attempt to reverse its profit slide
With the premium market offering
good growth prospects as well as
higher profit margins, it is hardly
surprising
that
mass-market
carmakers are edging into the
premium
market.
Numerous
carmakers
have
been
making
strategic
acquisitions
or
are
revamping and revitalising their own
premium brands so as to benefit
from the perks of the premium
market. Hyundai is the latest to get
on board. It has been suffering from
falling profits over the last few years
with foreign competitors making the
Korean market more difficile and the
strong Korean won undermining
overseas sales. To escape this
downward slide, it has made the
move to launch a new global luxury
standalone car brand called Genesis.
The rebranding sees Hyundais
current Genesis line-up break off and
form its own entity. Hyundai is set to
launch six new Genesis models by
2020 to compete in the same bracket
as Toyotas Lexus or Nissans Infiniti.
11%
10%
9%
8%
7%
6%
5%
4%
10
11
12
13
14
400
350
300
250
200
150
100
2010
2011
2012
2013
2014
Source: Xerfi Global with Bain & Company: Fondazione Altagamma via Statista
111
An offensive move:
2.8bn
A defensive move:
Nokias digital
mapping business
Volkswagens Audi, Daimlers Mercedes-Benz and BMW have responded to the threat of competition from big tech in the era
of connected and automated car by purchasing Nokia Here, a digital mapping business. The 2.8bn deal gives the carmakers
access to highly-accurate maps that allow personalised location-based services for connected cars and driver-assistance
systems. It is also a defensive move, preventing such information from being monopolised by tech companies.
It remains to be seen whether such acquisitions will allow carmakers to compete with Silicon Valley players as continued
investment to develop such systems is, of course, required.
112
Chinese
automakers
are making
forays abroad
113
4,0
NET
REVENUE
6.7% from
regulatory
credits
2,0
0,0
2010
2011
2012
2013
2014
Direct sales to
customers/Showrooming
Teslas car sales are expanding, but not all its sales are
related to its vehicles. Its 100% electric vehicle range
means it earns a large number of regulatory credits such
as zero emission vehicle, greenhouse gas emission and
corporate average fuel economy credits, which it can then
sell to other automobile manufacturers. Such sales
generated almost 7% of net revenue in 2014. Credits are
location-specific as they depend on local authorities (such
as the State of California) so this income could be lost
with international expansion.
1,0
CAPITAL
0,5
EXPENDITURE
0,0
2010
2011
2012
2013
2014
2013
2014
0%
OPERATING
MARGIN
-50%
Teslas youth and the fact that its business model requires
the set-up of a charger network and battery development as
well as production capacity expansion means that capital
expenditure together with research and development
continue to grow and Tesla is yet to achieve a positive
operating margin.
-100%
-150%
2010
2011
2012
114
WITH JLR
WITHOUT JLR
40
NET
REVENUE
30
20
10
0
PROFIT
BEFORE
TAXES
3
2
1
0
-1
115
5. Company Profiles
116
Presentation
VOLKSWAGEN GROUP
Passenger Cars
74.6% of revenue
Commercial Vehicles
12.4% of revenue
Power Engineering
1.8% of revenue
Financial Services
11.2% of revenue
Headquarters
Wolfsburg, Germany
Net sales
202.46bn
Operating margin
6.3%
Net margin
5.5%
Capex ratio
5.9%
R&D ratio
5.7%
Units sold
10.22m
Staff
583,000
19.4%
41.2%
North America
13.6%
South America
6.8%
Asia-Pacific
18.8%
117
Description of business
% OF SALES
OPERATING
MARGIN
PASSENGER CARS
74.6%
7.7%
COMMERCIAL VEHICLES
12.4%
3.6%
SEGMENT
DESCRIPTION
POWER ENGINEERING
1.8%
1.2%
FINANCIAL SERVICES
11.2%
8.5%
118
April 2015
May 2015
August 2015
September 2015
Volkswagen Group is to manufacture the new Volkswagen midsize SUV in the Chattanooga plant, Tennessee, the
USA. This entails a 432m-expansion investment at the facility.
Volkswagen launches the new Golf Alltrack together with four new models in the Beetle line-up -two coups and
two cabriolets designed for the US market.
Volkswagen Group begins operations at its new Shanghai-Volkswagen (SVW) facility located in Changsha, southern
China. The site, whose yearly output amounts to 300,000 units, will manufacture the Volkswagen New Lavida, as well
as other Volkswagen and Skoda brands.
Volkswagen Group China consolidates its market leadership in the country. Combined sales of Volkswagen Group
China and Shanghai Volkswagen and FAW-Volkswagen, its two Chinese joint ventures, totaled 1,743,000 units in the
first half of 2015.
Volkswagen begins operations at its new engine facility in Kaluga, Russia. The engines produced will be fitted on
Volkswagen Polo and Skoda Rapid models manufactured at the Kaluga facility, as well as on the Volkswagen Jetta,
Skoda Octavia and Yeti, manufactured in partnership with GAZ at the Nizhny Novgorod facility.
SEAT has earmarked 3.3bn in R&D and capital investment for the development and marketing of four new models,
including the brands first compact SUV, over the next two years. SEAT is Spains largest car maker, encompassing
roughly 1% of Spains GDP and 4% of Catalonias GDP.
Volkswagen is unveiling its new Tiguan SUV at The International Motor Show in Frankfurt. The new line-up will
include four versions: the sporty Tiguan R-Line, the classic on-road, the off-road version and the Tiguan GTE a
plug-in hybrid concept car. The previous version of the Tiguan was sold in over 2.64 million units.
119
February 2014
Volkswagen is launching the e-Golf, a fully-electric vehicle, with a range of up to 190km. Priced starting from
34,000, the model is Volkswagens second electric vehicle launched over the past six months.
April 2015
Audi to launch production of the A6 L e-tron in China. The plug-in hybrid model was designed specifically for the
Chinese market. The first A6 L e-tron is slated for production in early 2016.
June 2015
Volkswagen Group is teaming up with China-based SAIC Motor Corporation for future development and
production of electric vehicles at the Chinese joint venture SVW in Anting. In the coming four years, Volkswagen
intends to start manufacturing a total of 15 plug-in hybrid and fully electric vehicle models in China. The project is
part of a wider investment plan of Volkswagen group in China: by 2019, Volkswagen Group and its Chinese joint
ventures will disburse 22bn to expand/upgrade production capacity in China.
August 2015
Audi is teaming up with Samsung SDI and LG Chem to jointly work on battery-cell technology for the development
of its first battery-electric Audi SUV.
Audi is introducing its new Audi e-tron quattro a concept all-electric vehicle, at The International Motor Show in
Frankfurt. Audi aims to launch an all-electric, luxury sport SUV car in 2018.
September 2015
Volkswagen is unveiling its new Tiguan GTE a concept plug-in hybrid car not yet marketed, at The International
Motor Show in Frankfurt.
120
January 2015
April 2015
May 2015
July 2015
August 2015
Volkswagen Group is acquiring BlackBerry's European research and development centre in Bochum, Germany, and
transforming it into the Volkswagen Infotainment GmbH, as part of its strategy to enhance its car connectivity
expertise.
Audi launches the new Q7 vehicle, the first in the world to feature a wide-ranging selection of driving assistance
technologies, such as the adaptive cruise control with traffic jam assistant.
Audi is joining hands with DHL Parcel and Amazon Prime to deliver parcels directly to a car trunk based on keyless
access to a cars baggage compartment.
Porsche launches the Porsche Car Connect, enabling Apple Watch users to control and monitor a series of car
functions over any distance.
Audi acquires an interest stake in Cubic Telecom, an Ireland-based machine-to-machine technology group, in a
move to increase its expertise in the area of infotainment and connectivity.
Audi is working with Baidu and Huawei to enhance car connectivity features in China. Audi has teamed up with
Huawei Technologies to develop an Asia-specific LTE module. Audis partnership with Baidu involves iOS- and
Android-based platform integration between Audi cars and Baidu CarLife, a service similar to Android Auto and
Apple CarPlay.
Volkswagen Group, together with six national and international partners under the umbrella of the EU-wide Vcharge project, are aiming to advance research in the are of autonomous driving. The V-Charge trial vehicle is
based on a Volkswagen e Golf1 model.
Audi, BMW and Daimler to acquire HERE, Nokia Corporations mapping and location services business. This move
comes as the three carmakers intend to develop cloud-based maps and other mobility services for the automotive
industry.
Audi will participate in the "Cooperative Highly-Automated Driving" project funded by the German Federal Ministry
of Economics and Energy. The initiative aims to develop next-generation piloted driving technologies that Audi will
include in its future Audi A8 series.
Skoda launches the SmartGate in-car networking system compatible with Android, iOS and Windows platforms,
allowing users to access vehicle information (distance travelled, vehicle performance information) on their
smartphones.
121
Porsche starts operations at its new facility in Leipzig. Total investment amounted to 500m. The facility will
manufacture the new Porsche Macan.
May 2014
Audi is launching 10 new ultrafuel-efficient, low-emission models in the Audi A3, A4, A5, A6 and A7 series. hereby,
the brands ultra product range has 22 models.
December 2014
Bentley is funnelling 60m to expand its headquarters in Crewe, the UK. The project involves the construction of a
new R&D facility to hasten development and marketing of the world's first ultra-luxury SUV slated for serial
production in 2016. In addition, Bentley has earmarked a total of 1bn for product and facility development over
the next three years.
Audi plans to make investments of over 24bn over the 2015-2019 period. Main initiatives include the development
of new models and technologies (70% of the total amount) as well as enhancing production facilities in Germany.
May 2015
Automobili Lamborghini, a subsidiary of the Volkswagen group, introduces a first SUV to its luxury vehicle line-up.
Annual output of the new model is set to reach 3,000 units, targeting markets such as the USA, China, the Middle
East, the UK, Germany and Russia.
122
Financial indicators
200
30%
150
20%
100
10%
50
0%
14
12
7%
10
6%
5%
4%
3%
2%
-10%
8%
1%
09
09 10 11 12 13 14
10
11
12
13
14
12
6,0%
10
20%
10
5,5%
16%
5,0%
12%
4,5%
8%
4,0%
4%
3,5%
0%
0
09 10 11 12 13 14
3,0%
09 10 11 12 13 14
123
Financial indicators
units: change in %
Passenger Cars
Commercial Vehicles
Power Engineering
Financial Services
3,73
1,8%
22,59
11,2%
2013-2014
Financial
Services
Revenue
breakdown
by
operating segment, expressed as
a percentage.
25,00
12,4%
2012-2013
Power
Engineering
Commercial
Vehicles
28,1%
Passenger Cars
150,6
8
74,6%
-10% 0%
10% 20%
Sales by region
units: change in %
Germany
Europe & Other Regions
North America
South America
Asia-Pacific
38,11
18,8%
39,37
19,4%
13,87
6,8%
27,62
13,6%
83,49
41,2%
Annual
sales
change
by
operating segment, expressed as
a percentage.
2013-2014
2012-2013
Asia-Pacific
South America
-20,7%
North America
Europe & Other
Regions
Germany
-10%-5% 0% 5% 10%
124
Financial indicators
Liquidity ratios
units: %
ROE
Quick ratio
ROA
30%
8%
7%
25%
6%
20%
5%
15%
4%
3%
10%
2%
5%
1%
0%
0%
09
10
11
12
13
1,2
1,1
1,0
0,9
0,8
0,7
0,6
14
09
Solvency ratios
Current ratio
10
11
12
13
14
Debt-to-equity
FCF
Interest coverage
4,5
12 Debt-to-equity
is the ratio
between total liabilities and total
10
equity and reflects the companys
8 relative amount of debt. Interest
coverage (EBITDA divided by net
6 interest expenses) reflects the
company's debt burden, i.e. its
4 ability
to pay interest on
outstanding
debt. The lower this
2
ratio, the more the company is
0 burdened by interest expenses.
4,0
3,5
3,0
2,5
2,0
1,5
09
10
11
12
13
14
Capex ratio
6,5%
6,0%
5,5%
5,0%
4,5%
-2
4,0%
-4
3,5%
09 10 11 12 13 14
125
Statistical tables
Year
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2009
105.19
-7.6%
1.86
1.8%
0.91
0.9%
2010
126.88
20.6%
7.14
5.6%
7.23
5.7%
2011
159.34
25.6%
11.27
7.1%
15.80
9.9%
2012
192.68
20.9%
11.50
6.0%
21.88
11.4%
2013
197.01
2.2%
11.67
5.9%
9.15
4.6%
2014
202.46
2.8%
12.70
6.3%
11.07
5.5%
units: billion euros; % change; operating income and net income as % of sales
Year
R&D expenses
R&D ratio
Annual % change
2009
5.43
5.2%
6.31
0.6%
2010
6.87
5.4%
7.28
15.3%
2011
7.23
4.5%
8.36
14.9%
2012
8.85
4.6%
9.35
11.8%
2013
10.19
5.2%
9.73
4.1%
2014
11.55
5.7%
10.22
5.0%
126
Statistical tables
Segment
Passenger Cars
Commercial
Vehicles
Power
Engineering
Financial
Services
2014 sales
% of total
sales
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
150.68
74.6%
7.7%
146.63
74.6%
2.8%
148.16
-1.0%
25.00
12.4%
3.6%
25.96
13.2%
-3.7%
20.26
28.1%
3.73
1.8%
1.2%
3.85
2.0%
-3.1%
4.22
-8.9%
22.59
11.2%
8.5%
20.09
10.2%
12.4%
18.15
10.7%
Region
2014 sales
% of total
sales
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Germany
39.37
19.4%
37.71
19.1%
4.4%
37.73
-0.1%
83.49
41.2%
79.35
40.3%
5.2%
77.65
2.2%
North America
27.62
13.6%
27.43
13.9%
0.7%
25.05
9.5%
South America
13.87
6.8%
17.50
8.9%
-20.7%
18.31
-4.5%
Asia-Pacific
38.11
18.8%
35.02
17.8%
8.8%
33.94
3.2%
127
Statistical tables
Year
Total assets
Total liabilities
Total equity
Debt ratio
ROE
ROA
Interest
expenses
Interest
coverage ratio
2009
177.18
161.96
37.43
4.33
2.4%
0.5%
1.15
1.62
2010
199.39
128.47
48.71
2.64
14.8%
3.6%
1.15
6.19
2011
253.77
246.29
63.35
3.89
24.9%
6.2%
1.15
9.84
2012
309.52
171.77
82.00
2.09
26.7%
7.1%
1.40
8.22
2013
324.33
234.30
90.04
2.60
10.2%
2.8%
1.51
7.71
2014
351.21
261.02
90.19
2.89
12.3%
3.2%
1.45
8.74
Year
Current assets
Current
liabilities
Quick ratio
Current ratio
Operating
cash flow
Capital
expenditure
Capex ratio
2009
77.78
69.53
0.92
1.12
12.74
5.78
5.5%
6.96
2010
85.94
76.90
0.89
1.12
11.46
5.66
4.5%
5.80
2011
105.64
101.24
0.77
1.04
8.50
7.93
5.0%
0.57
2012
113.06
105.53
0.80
1.07
7.21
10.27
5.3%
- 3.06
2013
122.19
118.63
0.79
1.03
12.60
11.39
5.8%
1.21
2014
131.10
130.71
0.76
1.00
10.78
12.01
5.9%
- 1.23
128
Presentation
TOYOTA MOTOR
Automotive
89.6% of revenue
Financial Services
5.9% of revenue
All other
4.5% of revenue
Headquarters
Toyotas roots can be traced back to 1933 when it started operations as the
automobile subsidiary of Toyota Industries Corporation. Today, Toyota is
the worlds second largest by sales value and third largest by volume, with
8.97 units sold in the last fiscal year (compared to 10.22m for the
Volkswagen group and 9.93 for GM).
Net sales
Operating margin
194.01bn
10.1%
Net margin
8.0%
Capex ratio
12.3%
R&D ratio
3.7%
Vehicles sold
Staff
8.97 million
344,109
30.6%
North America
34.6%
Europe
Asia
Other
9.9%
16.6%
8.2%
129
Description of business
SEGMENT
AUTOMOTIVE
FINANCIAL SERVICIES
ALL OTHER
% OF SALES
89.6%
5.9%
4.5%
OPERATING
MARGIN
9.3%
21.8%
5.2%
DESCRIPTION
Toyota designs, produces and markets a wide range of vehicles:
subcompact (Yaris, Aygo),
compact (Corolla),
mini (Daihatsu-branded),
mid-sized (Camry, Reiz for the Chinese market, Avensis),
luxury (Lexus),
sports (Scion, the Lexus RC),
sport utility vehicles (Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser,
Land Cruiser),
pickup trucks (Tacoma, Tundra),
minivans (Alphard, Vellfire),
as well as trucks and buses under the Hino brand.
Provision of financing to dealers and their customers for car
purchasing or leasing.
130
Toyota is planning to double production capacity at its facility in Saint Petersburg, Russia to 100,000 vehicles by the
end of 2015. At present, the facility manufactures the Camry model for the Russian, Belarus and Kazakh markets.
The plant will accommodate production of Toyota RAV4 in 2016.
January 2015
Toyota to boost production of its Etios model at the Sorocaba Plant in So Paulo, Brazil, from 74,000 to 108,000
units by the start of 2016.
April 2015
Toyota is investing 100m in a new production line at its GAC Toyota Motor joint venture facility in Guangzhou,
China, which manufactures models such as the Highlander, Camry (including hybrid), Camry Classical, Levin, Yaris L,
and E'z. This will boost capacity by approximately 100,000 units.
August 2015
Toyota is adding a new production line at its Tianjin Faw Toyota Motor joint venture facility in Tianjin, China, which
manufactures models such as the Crown, Reiz, Corolla, Corolla EX, and Vios. This will boost capacity by
approximately 100,000 units. However, overall capacity at the plant will remain stable, as the group plans to retire
an out-dated line of production by the end of 2017.
131
Toyota, Nissan, Honda and Mitsubishi launch Nippon Charge Service, a joint venture that will see the development
of charging stations for electric-powered vehicles (including plug-in hybrids) across Japan.
June 2014
Toyotas i-Road and Coms ultra-compact electric cars will be accessible via a car-sharing project to be launched in
October 2014 by the City of Grenoble, France.
October 2014
Toyota is preparing to test joint vehicle charging infrastructure for both plug-in hybrid and electric vehicles. The
trials will take place in Aichi Prefecture during the November 2014-March 2015 period.
November 2014
Toyota expands its plug-in hybrid charging network to include stations managed by Nippon Charge Service.
Through the new fee-based service, Prius PHV owners will be able to access new charging stations across Japan.
Toyota launches the Mirai, the first mass marketed fuel cell car in the automotive industry. The Mirai can be
recharged in about five minutes and discharges only water vapour into the atmosphere.
January 2015
Toyota plans to increase production of Mirai-branded fuel cell vehicles to 700 units in 2015 and 2,000 in 2016 based
on current levels of demand.
February 2015
Based on i-Road, its three-wheeled electric vehicle, Toyota, in collaboration with the Times Car Plus car sharing
service, is testing a car sharing service in Tokyo.
July 2015
Toyota Motor, Nissan Motor, and Honda Motor to jointly participate in the development of refuelling stations for
fuel-cell vehicles in Japan.
August 2015
Toyota exceeds 8 million units in sales of hybrid vehicles. To date, the groups hybrid line-up comprises over 30
models, including a plug-in hybrid. Recently launched models include the Lexus RC300h, the Sienta Hybrid, etc.
132
April 2015
June 2015
Toyota is on track to launch the first ever Lexus production line in the US. A 300m investment project will see the
Lexus ES350 manufactured at the Georgetown, Kentucky facility whose annual output will reach 50,000 units.
Toyota will build a new factory in Guanajuato, Mexico. The group aims to shift Corolla production from Ontario,
Canada, to the new facility in Mexico by 2019. This is part of Toyotas efforts to consolidate North American
production in Mexico and the south of the US.
Toyota to expand its R&D centre located in Michigan, the USA. The 126m project includes the addition of a vehicle
development facility and a supplier centre facility. In addition, Toyota will boost capacity of its engine development
centre.
Toyota announces plans to build its new North America headquarters in Plano, Texas, the USA. This is part of the
groups strategy to strengthen its operations in North America.
Toyota Motor and Panasonic are collaborating for the development of technologies that connect cars to home
appliances. The two companies will develop new applications to control home appliances remotely from a vehicle.
May 2015
Toyota Motor and Mazda Motor sign an agreement which sets the basis for future joint development of vehicle
products and technologies. The two companies will pool their respective strengths in environmental and safety
technologies.
June 2015
Toyota Motor is teaming up with Ford Motor to advance the development of SmartDeviceLink technologies, in-car
telematics, for Toyota- and Lexus-branded vehicles.
133
Financial indicators
200
15%
150
10%
5%
100
0%
50
-5%
25
10%
20
8%
15
6%
10
4%
2%
-10%
0%
5%
20%
8
15%
6
10%
4%
4
3%
5%
2
4
0%
2
-5%
09 10 11 12 13 14
09 10 11 12 13 14
09 10 11 12 13 14
10
12%
2%
09
10
11
12
13
14
134
Financial indicators
units: change in %
2013-2014
2012-2013
Financial Services
All Other
8,95
4,5%
11,83
5,9%
All Other
Revenue
breakdown
by
operating segment, expressed as
a percentage.
Annual
sales
change
by
operating segment, expressed as
a percentage.
Financial
Services
Automotive
178,53
89,6%
0%
10%
20%
30%
Sales by region
units: change in %
Japan
Europe
Other*
North America
Asia
2013-2014
2012-2013
Other*
32,28
16,6%
15,98
8,2%
Asia
59,40
30,6%
Europe
North America
19,17
9,9%
Japan
67,18
34,6%
Source: company information; *Other consists of Central and South America, Oceania, Africa and the Middle East.
135
Financial indicators
Liquidity ratios
units: %
ROE
Quick ratio
ROA
14%
5%
12%
4%
10%
8%
3%
6%
2%
4%
1%
2%
0%
0%
09
10
11
12
13
Current ratio
1,4
1,2
1,0
0,8
0,6
14
09
Solvency ratios
10
11
12
13
14
Debt-to-equity
FCF
Interest coverage
2,0
140 Debt-to-equity
is the ratio
between
total
liabilities
and total
120
equity and reflects the companys
100 relative amount of debt. Interest
80 coverage (EBITDA divided by net
interest expenses) reflects the
60 company's debt burden, i.e. its
to pay interest on
40 ability
outstanding debt. The lower this
20 ratio, the more the company is
burdened by interest expenses.
0
1,8
1,6
1,4
09
10
11
12
13
14
Capex ratio
10
16%
12%
4
2
8%
0
-2
4%
09 10 11 12 13 14
136
Statistical tables
Year
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2009
135.00
-7.7%
1.05
0.8%
1.49
1.1%
2010
135.30
0.2%
3.34
2.5%
2.91
2.1%
2011
132.38
-2.2%
2.53
1.9%
2.02
1.5%
2012
157.18
18.7%
9.41
6.0%
6.85
4.4%
2013
183.02
16.4%
16.33
8.9%
12.99
7.1%
2014
194.01
6.0%
19.59
10.1%
15.48
8.0%
units: billion euros; % change; operating income and net income as % of sales
Year
R&D expenses
R&D ratio
Annual % change
2009
5.17
3.8%
7.24
n/a
2010
5.20
3.8%
7.30
0.9%
2011
5.56
4.2%
7.34
0.5%
2012
5.75
3.7%
8.87
20.8%
2013
6.49
3.5%
9.11
2.8%
2014
7.16
3.7%
8.97
-1.6%
137
Statistical tables
Segment
2014 sales
% of total
sales
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Automotive
178.53
89.6%
9.3%
169.41
90.2%
5.4%
145.46
16.5%
Financial
Services
11.83
5.9%
21.8%
10.12
5.4%
16.9%
8.34
21.4%
All Other
8.95
4.5%
5.2%
8.20
4.4%
9.1%
7.60
8.0%
2014 sales
% of total
sales
Region
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Japan
59.40
30.6%
18.8%
60.79
33.2%
-2.3%
56.35
7.9%
North America
67.18
34.6%
6.2%
56.55
30.9%
18.8%
43.94
28.7%
Europe
19.17
9.9%
3.0%
18.62
10.2%
2.9%
14.27
30.5%
Asia
32.28
16.6%
9.3%
31.88
17.4%
1.2%
28.91
10.3%
Other*
15.98
8.2%
5.0%
15.18
8.3%
5.3%
13.71
10.7%
Region
138
Statistical tables
Year
Total assets
Total liabilities
Total equity
Debt ratio
ROE
ROA
Interest
expenses
Interest
coverage ratio
2009
216.20
138.33
73.80
1.87
2.0%
0.7%
0.24
4.42
2010
212.41
138.81
73.60
1.89
4.0%
1.4%
0.21
15.97
2011
218.35
143.19
75.16
1.91
2.7%
0.9%
0.16
15.51
2012
252.77
166.23
86.54
1.92
7.9%
2.7%
0.16
57.51
2013
295.19
192.11
103.07
1.86
12.6%
4.4%
0.14
116.77
2014
336.81
220.42
119.59
1.84
12.9%
4.6%
0.16
120.26
Year
Current assets
Current
liabilities
Quick ratio
Current ratio
Operating
cash flow
Capital
expenditure
Capex ratio
2009
93.13
76.12
1.09
1.22
18.23
10.24
7.6%
7.99
2010
84.27
76.87
0.98
1.10
14.42
12.05
8.9%
2.37
2011
87.77
83.93
0.91
1.05
10.35
10.91
8.2%
- 0.57
2012
98.20
91.98
0.93
1.07
17.46
14.06
8.9%
3.40
2013
111.97
104.58
0.94
1.07
25.97
19.08
10.4%
6.89
2014
127.77
117.05
0.96
1.09
26.26
23.92
12.3%
2.34
139
Presentation
GENERAL MOTORS
GMNA
65.0% of
revenue
GME
14.3% of
revenue
GMIO
GMSA
GM Financial
9.2% of revenue 8.4% of revenue 3.1% of revenue
Headquarters
GM sold 9.93 million cars in 2014, primarily under the Buick, Cadillac, Chevrolet and
GMC brands. Secondary brands are Holden, Opel and Vauxhall in Europe; Baojun
and Wuling in China. In light of growing demand for its luxury models in the US
and China over the past few years, GM established Cadillac as an individual
business unit within the group in September 2014.
Amidst growing sales momentum, GMs reputation has been tarnished as the US
Department of Justice accused the group of wilfully and knowingly concealing
evidence over a faulty ignition switch which prevented the airbags from deploying
in a car crash, resulting in over 100 deaths and 1,000 injuries. GM has settled the
case in September 2015, accepting to pay a penalty of about 600m, and to be
placed under monitoring.
Net sales
116.57bn
Operating margin
2.6%
Net margin
1.8%
Capex ratio
4.5%
R&D ratio
4.7%
Unit sales
9.93 million
Staff
216,000
GMNA
GME
GMIO
GMSA
34.4%
12.7%
44.1%
8.8%
140
Description of business
SEGMENT
GMNA
GME
% OF SALES
65.0%
14.3%
OPERATING
MARGIN
DESCRIPTION
6.5%
-6.2%
GM Europe designs, develops and produces vehicles under the Opel and
Vauxhall brands. It operates primarily in Germany, the UK and Russia.
Deliveries in Europe amounted to 1,256,000 units in 2014 - a 6.7% share
of the market.
GMIO
9.2%
8.5%
GMSA
8.4%
-1.4%
GM FINANCIAL
3.1%
16.5%
141
FOCUS ON THE US: NEW SUV AND PICK-UP LAUNCHES; BOOST CADILLAC GROWTH
In recent years, GMs performance in the US has reached historical highs on the back on new product launches, particularly in
mid-sized and large pick-ups and SUVs (Chevrolet Colorado, GMC Canyon) as well as in its luxury line-up (Cadillac Escalade).
GM foresees growing demand in coming years, with the overall market expected to exceed 17m units in sales, a level unseen
since 2001. Demand for small SUVs has been particularly buoyant in the US, and GM has positioned itself to grow in the
category with the recent launch of its Chevrolet Trax. In addition, building on strong performance in its luxury portfolio, GM has
established Cadillac as a separate business unit in 2014 in a move to bolster the brands development across the globe (five new
models are slated to be launched in North America in 2015, nine in China over the next five years, operations are set to
commence in Russia in coming years, etc.)
April 2014
GM unveils the Chevrolet Trax, a new vehicle in the small-SUV category, to be marketed globally.
GM inaugurates in Phoenix its fourth Information Technology Innovation Center in the US.
August 2014
GM introduces the latest model in its Chevrolet Volt electric vehicle line-up. GMs Volt has recorded stronger sales,
especially from non-GM customers. The company claims that seven of 10 new Volt buyers in 2013 did not
previously own a GM car - the majority of these customers traded in Toyota Priuses.
September 2014
March 2015
Cadillac lifts the lid on the CT6, a premium luxury sedan and the eighth of a series of new vehicles meant to enhance
the Cadillac portfolio. By 2020, GM will have spent a total of 15bn for product development and marketing, in an
effort to position the brand as the ultimate expression of comfort, luxury and connectivity.
GM launches the 2016 GMC Terrain and Terrain Denali, new models in its line-up of compact SUV vehicles, at the
New York International Auto Show.
May 2015
September 2015
GM to allocate 0.9bn in order to upgrade its full-size truck facility in Fort Wayne, Indiana, the USA. The initiative is
part of GMs efforts to upgrade manufacturing in the US, with nearly 4bn in investment to be disbursed over the
next three years.
GM reaches a settlement with US authorities over a faulty ignition switch which prevented the airbags from
deploying in a car crash, which resulted in over 100 deaths and 1,000 injuries. GM was charged with wilfully and
knowingly concealing evidence about the switches which were fitted on-board approximately 2.6m compact cars
produced over the 2002-2007 period. GM will pay a penalty of about 600m, and will be placed under the
supervision of an independent observer.
142
Shanghai GM inaugurates the Buick aftersales store on Tmall.com. The latter is the online retail platform of Alibaba
Group, a leading Chinese e-commerce company.
July 2014
SAIC-GM-Wuling lays the foundation stone for its new R&D facility in Liuzhou, Guangxi. With this move, GM aims to
bolster development of new cars tailored to the taste of the Chinese customer.
October 2014
Shanghai GM will be the first automaker in China to install embedded 4G LTE services on-board its cars. Starting in
2015, the joint ventures vehicles will feature the OnStar 4G LTE, GMs high-speed connectivity technology.
December 2014
The SAIC-GM-Wuling team starts operations at its new facility in Chongqing. A project to add capacity - the
second phase of production - is in early stages.
April 2015
GM and SAIC set up the SAIC Motor Insurance Sales joint venture to provide insurance services for Buick, Cadillac
and Chevrolet customers in China.
July 2015
SAIC-GM-Wuling introduces the Baojun 560, the first SUV in the Baojun line-up, designed specifically for the
Chinese market. SAIC-GM-Wuling started marketing Baojun-branded vehicles in 2010. The Baojun family includes a
630 sedan, Le Chi mini-car, the 610 hatchback and the 730 MPV.
SAIC GM to start exports of Chevrolet Sail 3, third-generation Chevrolet Sail cars produced in China, to Chile and
Peru. SAIC GM hopes to start exports to other markets in South America, as well as to Africa and Asia.
SAIC-GM-Wuling launches the Wuling Hong Guang S1 MPV, the third-generation model in Hong Guang product
line-up.
August 2015
GMs SAIC-GM-Wuling joint venture in China delivers the first Baojun 560 SUV off the new production line at its
Baojun plant in Liuzhou, Guangxi. Total capacity added at the facility amounts to 400,000 vehicles, 400,000 engines
and 200,000 new energy vehicles a 1bn-euro investment.
143
GM to pour 245m into capacity expansion at its Ruesselsheim plant in Germany. The facility will hence
accommodate production of new Opel models, including one model that will be rebranded Buick for sales in the US
market.
August 2014
GM intends to invest over 2bn in Brazil over the 2014-2018 period. The budget is earmarked chiefly for new vehicle
development, particularly of the Chevrolet brand.
September 2014
GMs first Chevrolet for export to Chile rolls off production line at the Talegaon plant in Pune, India. GMs facilities in
India - Talegaon and Halol have an annual output of 280,000 vehicles.
February 2015
SAIC-GM-Wuling, the joint venture between GM, SAIC and Wuling Motors in China, will set up manufacturing
operations in Indonesia. Plans are to produce Wuling-branded vehicles at a facility that will be built close to the
capital city.
March 2015
GMs Opel brand will withdraw from the Russian market by the end of the year as part of the groups effort to focus
on the premium segment. GMs will halt operations at its St. Petersburg facility as it prepares the ground for the
development and production of its Cadillac brand in Russia.
144
Financial indicators
115
30%
25%
110
20%
105
15%
100
10%
95
5%
90
11
12
13
5%
4%
3%
2%
1%
0
11
12
13
14
30%
20%
6%
5%
4%
10%
0%
10
11
12
13
14
0%
10
14
7%
6%
0%
10
3%
10
11
12
13
14
145
Financial indicators
units: change in %
2013-2014
2012-2013
GMSA
GM Financial
3,63
3,1%
GM Financial
GMSA
9,80
8,4%
10,76
9,2%
Revenue
breakdown
by
operating segment, expressed as
a percentage.
Annual
sales
change
by
operating segment, expressed as
a percentage.
GMIO
GME
16,62
14,3%
75,66
65,0%
GMNA
-50%
0%
50% 100%
units: change in %
GMNA
GME
GMIO
2013-2014
GMSA
2012-2013
GMSA
,0,88
8,8%
,3,41
34,4%
,4,38
44,1%
,1,26
12,7%
GMIO
GME
GMNA
-20%
-10%
0%
10%
146
Financial indicators
Liquidity ratios
units: %
ROE
Quick ratio
ROA
25%
6%
20%
5%
4%
15%
3%
10%
2%
5%
1%
0%
0%
10
11
12
13
Current ratio
1,4
1,2
1,0
0,8
0,6
14
10
Solvency ratios
11
12
13
14
Debt-to-equity
FCF
Interest coverage
14 Debt-to-equity
is the ratio
between
total
liabilities
and total
12
equity and reflects the companys
10 relative amount of debt. Interest
8 coverage (EBITDA divided by net
interest expenses) reflects the
6 company's debt burden, i.e. its
to pay interest on
4 ability
outstanding debt. The lower this
2 ratio, the more the company is
0 burdened by interest expenses.
4
3
2
1
0
10
11
12
13
14
Capex ratio
6%
5%
4%
3%
2%
1%
0%
10
11
12
13
14
147
Statistical tables
Year
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2010
101.37
29.6%
4.86
4.8%
3.49
3.4%
2011
112.35
10.8%
6.94
6.2%
5.67
5.0%
2012
113.83
1.3%
4.59
4.0%
3.63
3.2%
2013
116.20
2.1%
3.99
3.4%
2.82
2.4%
2014
116.57
0.3%
3.00
2.6%
2.10
1.8%
units: billion euros; % change; operating income and net income as % of sales
Year
R&D expenses
R&D ratio
Advertising expenses
Advertising ratio
2010
5.20
5.1%
3.18
3.1%
2011
6.07
5.4%
3.35
3.0%
2012
5.53
4.9%
4.04
3.5%
2013
5.38
4.6%
4.11
3.5%
2014
5.53
4.7%
3.89
3.3%
148
Statistical tables
2014 sales
% of total
sales
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
GMNA
75.66
65.0%
6.5%
71.09
61.2%
6.4%
67.22
5.8%
GME
16.62
14.3%
-6.2%
16.42
14.1%
1.2%
17.24
-4.7%
GMIO
10.76
9.2%
8.5%
13.76
11.9%
-21.8%
15.39
-10.6%
GMSA
9.80
8.4%
-1.4%
12.32
10.6%
-20.4%
12.48
-1.3%
GM Financial
3.63
3.1%
16.5%
2.50
2.2%
45.2%
1.47
70.5%
Segment
2014
% of total
2013
2013 % share
2013-2014 change
2012
2012-2013 change
GMNA
3.41
34.4%
3.23
33.3%
5.5%
3.02
7.1%
GME
1.26
12.7%
1.39
14.3%
-9.8%
1.47
-5.2%
GMIO
4.38
44.1%
4.06
41.7%
7.9%
3.76
8.1%
GMSA
0.88
8.8%
1.04
10.7%
-15.3%
1.05
-1.3%
Sales volume
149
Statistical tables
Year
Total assets
Total liabilities
Total equity
Debt ratio
ROE
ROA
Interest
expenses
Interest
coverage ratio
2010
103.84
76.79
27.05
2.84
12.9%
3.4%
0.85
5.73
2011
108.11
79.61
28.50
2.79
19.9%
5.2%
0.56
12.48
2012
111.71
84.61
27.10
3.12
13.4%
3.3%
0.58
7.95
2013
124.36
92.51
31.85
2.90
8.8%
2.3%
0.78
5.08
2014
132.83
106.32
26.51
4.01
7.9%
1.6%
1.37
2.20
Year
Current assets
Current
liabilities
Quick ratio
Current ratio
Operating
cash flow
Capital
expenditure
Capex ratio
2010
39.66
35.25
0.87
1.13
5.07
3.14
3.1%
1.93
2011
48.54
39.79
0.95
1.22
6.10
4.67
4.2%
1.44
2012
52.33
40.36
1.02
1.30
7.93
6.03
5.3%
1.90
2013
60.93
46.66
1.08
1.31
9.44
5.66
4.9%
3.79
2014
62.55
49.12
1.07
1.27
7.52
5.30
4.5%
2.22
150
Presentation
Vehicle
81.0% of revenue
Finance
12.1% of revenue
Others
6.9% of revenue
Headquarters
Established in 1967, Hyundai Motor Company is South Koreas leading carmaker, and has a
strong presence in Asia and Europe. Along with Kia Motors Corporation, Hyundai Motor
Company is part of the Hyundai Motor group, a leading Korean chaebol (conglomerate)
with operations in finance, steel, construction, among other things. Hyundai Motor
Company holds a 33.88% stake in Kia Motors as of December 2013.
Hyundai Motor Companys production facilities are concentrated in South Korea and China,
which accounted for 60% of output in 2014. Hyundai also manufactures cars in India, the
US, the Czech Republic, Russia, Turkey and Brazil. In 2014, Hyundai sold nearly 5m cars, of
which 58.6% in the small passenger car category. Its affiliate, Kia, sold another 1.4m cars,
generating revenue of nearly 13bn.
Hyundai has seen tremendous sales expansion over the 2009-2011 period, by far
outperforming the industry. However, in recent years, its pace of growth has slowed down
considerably on the back of weak GDP growth and contracting car demand in emerging
markets. This was exacerbated by a shift in demand towards SUVs and bigger-sized cars,
which account for a relatively small slice of its production mix.
Net sales
63.64bn
Operating margin
8.5%
Net margin
8.6%
Capex ratio
3.8%
R&D ratio
2.4%
Vehicles sold
Staff
4,836,000 units
64,956 employees
Korea
44.7%
N. America
30.0%
Asia
6.9%
Europe
15.6%
Others
2.8%
151
Description of business
SEGMENT
% OF SALES
OPERATING
MARGIN
DESCRIPTION
VEHICLE
81.0%
8.0%
FINANCE
12.1%
9.9%
Provides financing for car purchasing, and also covers credit card
processing, among others.
OTHERS
6.9%
3.1%
152
Hyundai Assan Otomotiv Sanayi, a Hyundai joint venture, rolls out the first New Generation i20 model off its
production line in Turkey. The car is designed in Europe for European markets.
February 2015
Hyundai earmarks a budget of 1.5bn to develop its range of commercial vehicles, with 1.2bn slated for new
product development and 300m for bolstering production capacity (to 100,000 units per annum) of its Jeon-ju
facility in Korea.
April 2015
Hyundai lays the foundation stone for its operations in Changzhou, Hebei Province, China. This will be the groups
fourth facility in China and will have an initial output of 200,000 units per year. A second stage of construction will
see the plant reach total annual capacity of 300,000 units in 2018.
May 2015
Hyundai enters the multi-purpose light commercial vehicle category with the introduction of the H350 model for
the European market. The H350 will be manufactured by Hyundais partner, Karsan Automotive, at a facility in Bursa,
Turkey.
June 2015
Hyundai starts construction of its fifth facility in China. Located in Chongqing, China, the plant to be jointly run by
Hyundai Motor and the Beijing Automotive Group - has a capacity of 300,000 units per year and entails 800m in
investment.
153
Hyundai to market the Tucson fuel cell vehicle in the US market. The model will be available under leasing: with a
monthly fee of about 400, the customer is granted unlimited hydrogen refuelling and maintenance services.
January 2015
Hyundai launches the new Sonata plug-in-hybrid, the groups first model in the plug-in hybrid electric vehicle
category. The car will be built in Korea and will be sold in selected markets worldwide.
July 2015
Hyundai introduces Creta, its first car in the sub-compact SUV segment, in India. The model will be marketed
globally in coming months.
September 2015
Hyundai unveils the next generation of its Elantra compact sedan model. The group hopes to sell 110,000 units in
Korea and 590,000 abroad in 2016.
At the Frankfurt Motor Show, Hyundai lifts the lid on its Vision G Coupe, a new luxury concept that will be the
starting point for the development of a premium line-up of cars.
Hyundai unveils the first Hyundai Motorstudio in Gangnam, a business district in Seoul. The flagship showroom
will seek to promote the groups brand direction and aspirations.
November 2014
Hyundai unveils its largest dealership in Europe to date. Located in Frankfurt, the new sales location, along with an
additional 200 redesigned stores, will showcase the groups brand identity.
January 2015
Hyundai inaugurates in Moscow, Russia, the first Hyundai Motorstudio located outside of its home market. The
opening of the non-sale showroom is designed to raise brand awareness.
154
Financial indicators
60
15,0%
10%
50
12,5%
9%
40
10,0%
8%
30
7,5%
7%
20
5,0%
6%
10
2,5%
5%
0,0%
10
11
12
13
11
10%
8%
6%
4%
2%
0%
10
11
12
13
14
12
13
14
4%
10
14
11%
1,6
2,6%
1,4
2,5%
1,2
2,4%
1,0
2,3%
0,8
2,2%
0,6
2,1%
0,4
2,0%
0,2
1,9%
0,0
1,8%
10
11
12
13
14
155
Financial indicators
Finance
units: change in %
2013-2014
Others
Others
4,40
6,9%
7,68
12,1%
Revenue
breakdown
by
operating segment, expressed as
a percentage.
2012-2013
30,7%
Annual
sales
change
by
operating segment, expressed as
a percentage.
8,9%
14,2%
Finance
Vehicle
51,55
81,0%
0%
10%
20%
30%
40%
Sales by region
units: change in %
Korea
N. America
Asia
Europe
2013-2014
Others
2012-2013
Others
1,76
2,8%
9,91
15,6%
4,40
6,9%
28,45
44,7%
19,12
30,0%
475,6%
Europe
Asia
N. America
Korea
-10% -5% 0%
5% 10%
156
Financial indicators
Liquidity ratios
units: %
ROE
Quick ratio
ROA
22%
8%
20%
7%
18%
6%
16%
5%
14%
4%
12%
3%
10%
2%
10
11
12
13
Current ratio
2,0
1,8
1,6
1,4
1,2
1,0
14
10
Solvency ratios
11
12
13
14
Debt-to-equity
FCF
Interest coverage
Capex ratio
2,0
6,0 Debt-to-equity
3,8%
1,5
5,0
3,6%
1,0
4,0
0,5
3,0
0,0
2,0
10
11
12
13
14
3,4%
3,2%
-2,0
3,0%
10
11
12
13
14
157
Statistical tables
Year
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2010
47.76
n/a
4.22
8.8%
4.28
9.0%
2011
55.47
16.1%
5.72
10.3%
5.78
10.4%
2012
60.22
8.6%
6.02
10.0%
6.46
10.7%
2013
62.25
3.4%
5.93
9.5%
6.41
10.3%
2014
63.64
2.2%
5.38
8.5%
5.45
8.6%
units: billion euros; % change; operating income and net income as % of sales
Year
R&D expenses
R&D ratio
Annual % change
2010
0.99
2.1%
3.70
n/a
2011
1.03
1.9%
4.10
10.8%
2012
1.16
1.9%
4.39
7.1%
2013
1.32
2.1%
4.62
5.2%
2014
1.52
2.4%
4.84
4.6%
158
Statistical tables
2014 sales
% of total
sales
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Vehicle
51.55
81.0%
8.0%
51.00
81.9%
1.1%
50.84
0.3%
Finance
7.68
12.1%
9.9%
7.05
11.3%
8.9%
6.18
14.2%
Others
4.40
6.9%
3.1%
4.19
6.7%
5.1%
3.21
30.7%
Segment
2014 sales
% of total sales
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Korea
28.45
44.7%
27.64
44.4%
2.9%
27.56
0.3%
N. America
19.12
30.0%
18.29
29.4%
4.6%
17.62
3.8%
Asia
4.40
6.9%
4.59
7.4%
-4.2%
4.88
-5.9%
Europe
9.91
15.6%
10.04
16.1%
-1.2%
9.87
1.6%
Others
1.76
2.8%
1.70
2.7%
3.6%
0.30
475.6%
Region
159
Statistical tables
Year
Total assets
Total liabilities
Total equity
Debt ratio
ROE
ROA
Interest
expenses
Interest
coverage ratio
2010
67.53
44.08
23.45
1.88
18.2%
6.3%
1.26
3.35
2011
78.06
49.30
28.75
1.71
20.1%
7.4%
1.23
4.66
2012
86.65
52.49
34.16
1.54
18.9%
7.5%
1.18
5.08
2013
95.13
54.78
40.34
1.36
15.9%
6.7%
1.03
5.76
2014
104.97
60.32
44.65
1.35
12.2%
5.2%
0.99
5.42
Year
Current assets
Current
liabilities
Quick ratio
Current ratio
Operating
cash flow
Capital
expenditure
Capex ratio
2010
31.03
22.42
1.21
1.38
3.12
1.46
3.1%
1.66
2011
34.88
23.64
1.29
1.48
2.95
2.07
3.7%
0.88
2012
39.10
23.41
1.56
1.67
3.81
2.14
3.6%
1.67
2013
41.96
22.76
1.62
1.84
0.86
2.26
3.6%
- 1.40
2014
46.36
25.08
1.64
1.85
1.51
2.39
3.8%
- 0.88
160
Presentation
Strategic focuses
NISSAN MOTOR
Automobiles
93.1% of
revenue
Sales financing
6.9% of revenue
With 5.32m units sold in FY2014, Nissan markets over 60 car models worldwide
under the Nissan, Infiniti and Datsun trademarks. The US and China were the
groups largest markets, accounting for 26.1% and 23.0% respectively of total sales
volume in the last fiscal year.
Recent events
April 2015: Nissan lifts the lid on Lannia, a mid-size sedan exclusively designed to
suit the needs of the youth generation in China.
September 2015: Nissan and Daimler start construction of their joint facility in
Aguascalientes. The plant will produce jointly developed Infiniti- and MercedesBenz-branded premium compact vehicles starting in 2017-18. By 2020, capacity will
reach 230,000 units a year.
September 2015: At 2015 Frankfurt Motor Show, Nissans premium brand, Infiniti,
unveils the Q30, its first model in the premium compact category.
161
Financial indicators
4,5
80
20%
4,0
70
15%
60
10%
50
5%
40
0%
30
-5%
20
-10%
10
0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
-15%
0%
09 10 11 12 13 14
09 10 11 12 13 14
Sales by segment
Sales by region
Automobile
Japan
North America
Europe
Asia
Other overseas countries*
Sales Financing
5,55
6,9%
Revenue
breakdown
by
operating segment, expressed as
a percentage.
7,88
9,8%
8,16
10,1%
15,43
19,1%
12,12
15,0%
75,22
93,1%
37,17
46,0%
Source: company information; *Oceania, Middle East, Central and South America excluding Mexico and South Africa
162
Statistical tables
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2009
53.37
-10.9%
2.21
4.1%
0.30
0.6%
2010
62.29
16.7%
3.82
6.1%
2.27
3.6%
2011
66.80
7.2%
3.88
5.8%
2.42
3.6%
2012
62.03
-7.1%
3.72
6.0%
2.42
3.9%
2013
74.43
20.0%
3.54
4.8%
2.76
3.7%
2014
80.76
8.5%
4.19
5.2%
3.25
4.0%
Year
units: billion euros; % change; operating income and net income as % of sales
Segment
2014 sales
2014 % share
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Automobile
75.22
93.1%
3.5%
69.76
93.7%
7.8%
58.37
19.5%
Sales Financing
5.55
6.9%
25.0%
4.66
6.3%
18.9%
3.67
27.2%
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Japan
15.43
19.1%
16.67
22.4%
-7.4%
15.29
9.0%
North America
37.17
46.0%
31.87
42.8%
16.6%
24.51
30.0%
Europe
12.12
15.0%
11.79
15.8%
2.8%
9.85
19.6%
Asia
7.88
9.8%
7.07
9.5%
11.4%
5.97
18.5%
8.16
10.1%
7.03
9.4%
16.1%
6.42
9.6%
Region
163
Presentation
Strategic focuses
RENAULT GROUP
Automobile
94.7% of
revenue
Sales financing
5.3% of revenue
Founded in 1898, Renault is a leading carmaker in Europe. It sells cars under the
Renault, Dacia and Samsung trademarks. In 2014, the groups sales amounted to
2.7m units: the Duster, the new Logan and the new Sandero-badged Dacia in
Europe and the Mediterranean Basin and Renault elsewhere as well as the Renault
Clio IV and Captur were its best-selling models.
In 1999, Nissan and Renault signed a global partnership leading to the creation of
the Renault-Nissan Alliance -the worlds fourth biggest carmaker, with combined
sales of 8.5m units during 2014. While the two groups share expertise on four key
areas (engineering, manufacturing and supply chain, purchasing and human
resources), the Renault and Nissan groups are managed independently.
Recent events
June 2014: By acquiring 67.1% of the holding company that controls AvtoVAZ,
Renault and Nissan get a controlling stake (50.1%) in Russias AvtoVAZ.
September 2014: Renaults Sandouville plant (France) will make a new LCV based
upon the same platform as Renaults New Trafic for Fiat, starting in 2016.
October 2014: Dacia, Renault's low-cost brand selling in Europe and the
Mediterranean rim, records cumulative sales of 3m units since 2004.
November 2014: Renault starts operations at its Oued Tlelat car manufacturing
plant in Algeria. Production capacity installed amounts to 25,000 units per year.
March 2015: Renault to start manufacturing Logan and Sandero models at its Santa
Isabela facility in Argentina.
164
Financial indicators
40
15%
35
10%
30
5%
25
0%
20
-5%
15
-10%
10
2,0
1,5
1,0
0%
0,5
0,0
-0,5
-15%
-5%
09 10 11 12 13 14
09 10 11 12 13 14
Sales by segment
Automobile
France
Europe (outside France)
Eurasia
Americas
Africa, Middle East, India
Asia-Pacific
Sales financing
2,18
5,3%
Revenue
breakdown
by
operating segment, expressed as
a percentage.
38,87
94,7%
308,01
11,4%
577,60
21,3%
416,93
15,4%
389,70
14,4%
133,17
4,9%
887,01
32,7%
165
Statistical tables
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2009
33.71
-10.8%
-0.40
-1.2%
-3.13
-9.3%
2010
38.97
15.6%
1.10
2.8%
3.42
8.8%
2011
42.63
9.4%
1.09
2.6%
2.14
5.0%
2012
40.72
-4.5%
0.73
1.8%
1.74
4.3%
2013
40.93
0.5%
1.24
3.0%
0.70
1.7%
2014
41.06
0.3%
1.61
3.9%
2.00
4.9%
Year
units: billion euros; % change; operating income and net income as % of sales
Segment
2014 sales
2014 % share
Segment
margin (%)
2013 sales
2013 % share
2013-2014
change
2012 sales
2012-2013
change
Automobile
38.87
94.7%
2.2%
38.78
94.7%
0.3%
39.16
-1.0%
Sales financing
2.18
5.3%
34.4%
2.16
5.3%
1.1%
1.56
37.9%
2014
2014 % share
France
577.60
21.3%
887.01
32.7%
Eurasia
389.70
14.4%
Americas
416.93
15.4%
308.01
11.4%
Asia-Pacific
133.17
4.9%
Region volume
166
Presentation
5.7. Ford
Automotive
94.2% of revenue
Financial Services
5.8% of revenue
Dearborn, Michigan
Headquarters
107.71bn
Operating margin
2.7%
Net margin
2.2%
Capex ratio
5.2%
R&D ratio
4.8%
Staff
187,000 employees
Ford Motor Company was founded in 1903 by Henry Ford. The company
specialises in passenger vehicles, light commercial vehicles, SUVs, trucks,
hybrids and electric vehicles (EVs). Ford is also involved in finance with its Ford
Credit business.
Unlike domestic competitors, Ford did not go under Chapter 11 reorganisation
as a result of a huge restructuring programme that cut excess manufacturing
capacity and reduced brands. After many years of diversification and
development of several brands, Ford Motor is currently focusing on its core
Ford brand and revitalising that of Lincoln. The majority of its stake in Mazda
was sold and Volvo and Jaguar Land Rover are no longer part of the companys
portfolio. The company has 62 plants worldwide.
United States
57.4%
United Kingdom
8.1%
Canada
6.5%
Germany
5.2%
Others
22.7%
167
5.7. Ford
Description of business
% OF
SALES
OPERATING
MARGIN
94.2%
3.9%
57.2%
8.4%
6.1%
-13.2%
Ford Europe
19.7%
-3.6%
3.1%
-0.5%
7.4%
5.5%
SEGMENT
AUTOMOTIVE:
FINANCIAL SERVICES
5.8%
DESCRIPTION
168
5.7. Ford
Ford has been rationalising its brand portfolio in order to fully devote its resources to further growing its core Ford and Lincoln brands as
part of its One Ford plan. Over the last few years, the company has therefore eliminated a number of brands from its portfolio through the
sale of Volvo, Aston Martin and Jaguar Land Rover, phased out production of the Mercury brand and reduced its share in Mazda. At the
same time, it is refining its global product line-up. It launched 24 all-new or significantly refreshed products globally, including the all-new
F-150, Mustan, Escort, Ka, Transit and Lincoln MKC. 15 new global products are expected to be launched in 2015. With these products, Ford
aims to serve customers in all markets with a range of small, medium and large cars, utilities and trucks.
Ford issues five safety recalls and one safety compliance recall in North America.
Strong demand for new products boosts Fords August U.S. sales to their best levels in 9 years. Furthermore, Ford brand
September 2015
SUVs saw the best sales in 12 years.
UPPING IN-CAR SMART AND SAFE TECHNOLOGY
Ford is investing aggressively in a broad array of technologies that enhance vehicle connectivity to improve safety and integration with
devices such as smartphones. The company leverages this technology on global platforms. In the near-term, Ford is researching technology
to locate open parking spaces in crowded cities; make car-sharing easier; move vehicles across cities with remote control; use vehicles and
bicycles to gather information about traffic and parking conditions; and help make healthcare more accessible in rural areas. In the midterm, it is targeting additional semi-autonomous driving technologies and the emergence of integrated networks. In the long-term, it
believes that the landscape could look radically different and that connected traffic networks and smart vehicles capable of automated
navigation are likely to bring about new business models and contribute to improved personal mobility.
Ford enhances its SYNC Applink for app developers with new capabilities and tools for in-car experience innovation.
SYNC AppLink enables the use of voice-control smartphone apps from the drivers seat, and it allows for phone apps to
appear on the SYNC screen as they appear on the phone.
New Ford smartwatch apps allow electric vehicle owners to check their battery charge status, unlock their doors and
September 2015
monitor their driving score (petrol use, trip miles and braking and driving efficiency).
Ford announces it will launch innovative new adaptive steering technology in 2016 which will allow improved steering at
any speed.
TECHNOLOGY IMPROVEMENTS FOR BOTH PRODUCTION AND PRODUCTS
Ford is seeking to develop standardised flexible production facilities to increase efficiency while allowing the company to adapt to new
trends in market demand. It is reducing the number of platforms its vehicles are produced on and ensuring that these platforms can be
used to produce lighter, fuel-efficient vehicles with different engine models: hybrid, plug-in hybrid and pure battery. Ford has gone from
using 27 platforms in 2007 to 12 currently. It is aiming to employ just 9 by 2016 and eventually hopes to reduce this further to reach 8. It
aims to reinvest the savings resulting from its platform consolidation back into production development to introduce more products at a
faster product cadence. Indeed, new product launches can help to drive revenue and profit growth: over 50% of Fords global volume in
2015 will be from vehicles launched in 2014 and 2015.
169
Financial indicators
5.7. Ford
110
10,0%
7,5%
105
5,0%
100
2,5%
95
0,0%
90
-2,5%
85
11
12
13
6%
5%
4%
3%
2%
1%
11
12
13
14
US market share
units: %
2014
2,6%
2,5%
5,0
2,4%
4,0
2013
2,3%
3,0
2,2%
2,1%
2,0
2,0%
2012
1,0
14%
15%
0%
10
14
8%
7%
-5,0%
10
16%
1,9%
0,0
1,8%
10
11
12
13
14
170
Financial indicators
5.7. Ford
Sales by segment
units: change in %
2013-2014
2012-2013
Financial
Services Sector
6,2
5,8%
Revenue
breakdown
by
operating segment, expressed as
a percentage.
Annual
sales
change
by
operating segment, expressed as
a percentage.
Automotive
Sector
101,51
94,2%
Sales by region
units: change in %
United States
United Kingdom
Canada
Germany
2013-2014
Others
Others
Germany
24,5
22,7%
7,03
6,5%
5,6
5,2% 8,78
2012-2013
Canada
United
Kingdom
United States
8,2%
-20% -10%
0%
10%
171
Financial indicators
5.7. Ford
Profitability ratios
Liquidity ratios
units: %
ROE
Quick ratio
ROA
400%
12%
200%
0%
-200%
-400%
-600%
-800%
-1000%
-1200%
0%
10
11
12
13
Current ratio
2,6
2,4
2,2
2,0
1,8
1,6
1,4
1,2
1,0
14
10
Solvency ratios
11
12
13
14
Debt-to-equity
FCF
Interest coverage
Capex ratio
50,0
3,8%
25,0 Debt-to-equity
0,0
-50,0
-100,0
-150,0
-200,0
-250,0
-300,0
10
11
12
13
14
3,6%
3,4%
3,2%
-2,0
3,0%
10
11
12
13
14
172
Statistical tables
5.7. Ford
Year
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2010
96.38
6.56
6.8%
4.91
5.1%
2011
101.87
5.7%
6.23
6.1%
15.11
14.8%
2012
99.85
-2.0%
4.72
4.7%
4.24
4.2%
2013
109.84
10.0%
4.98
4.5%
5.35
4.9%
2014
107.71
-1.9%
2.92
2.7%
2.38
2.2%
units: billion euros; % change; operating income and net income as % of sales
Year
R&D expenses
R&D ratio
2010
3.74
3.9%
2011
3.96
3.9%
2012
4.11
4.1%
2013
4.78
4.4%
2014
5.16
4.8%
Year
US market share
2012
15.2%
2013
15.7%
2014
14.7%
units: % share
173
Statistical tables
5.7. Ford
Segment
Automotive Sector
Financial Services
Sector
2014 sales
% of total sales
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
101.51
94.2%
104.19
94.2%
-2.6%
94.62
10.1%
6.20
5.8%
5.64
5.8%
9.9%
5.75
-1.8%
2014 sales
% of total sales
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
United States
61.80
57.4%
63.89
58.2%
-3.3%
57.13
11.8%
United Kingdom
8.78
8.1%
7.50
6.8%
17.0%
6.89
8.9%
Canada
7.03
6.5%
7.27
6.6%
-3.3%
7.12
2.2%
Germany
5.60
5.2%
6.43
5.9%
-12.9%
6.19
3.9%
Others
24.50
22.7%
24.74
22.5%
-1.0%
23.04
7.4%
Region
174
Statistical tables
5.7. Ford
Year
Total assets
Total liabilities
Total equity
Debt ratio
ROE
ROA
Interest
expenses
Interest
coverage ratio
2010
123.12
123.60
-0.50
-245.66
-974.9%
4.0%
1.52
3.23
2011
133.33
122.07
11.23
10.86
134.5%
11.3%
0.77
19.55
2012
141.60
129.41
11.92
10.85
35.5%
3.0%
0.53
7.95
2013
151.03
131.04
19.72
6.64
27.1%
3.5%
0.62
8.63
2014
155.89
137.07
18.54
7.39
12.8%
1.5%
0.82
2.89
Year
Current assets
Current
liabilities
Quick ratio
Current ratio
Operating
cash flow
Capital
expenditure
Capex ratio
2010
88.92
36.54
2.31
2.43
8.58
3.06
3.2%
5.52
2011
89.87
37.65
2.27
2.39
7.31
3.21
3.2%
4.11
2012
93.58
54.89
1.60
1.70
6.76
4.10
4.1%
2.66
2013
98.37
55.42
1.67
1.78
7.81
4.93
4.5%
2.88
2014
98.56
57.67
1.61
1.71
10.85
5.58
5.2%
5.27
175
5.8. BMW
Presentation
Automotive
74.2% of revenue
Financial services
23.7% of revenue
BMW Motorbikes
2.1% of revenue
Strategic focuses
Strategic expansion of global production
BMW has been expanding its global production
network. In 2014, it started production in Brazil at
its Araquari plant and is preparing to open a new
plant in Mexico with a capacity of up to 150,000
units in 2019. It is also stepping up local
production in Shenyang, China, which is set to
build six BMW models specifically for the Chinese
market.
Bayerische Motoren Werke GmbH came into being in 1917. Today, it is one of
Germanys largest industrial companies, and a leading global premium car and
motorcycle manufacturer, with three main brands: BMW, MINI and Rolls-Royce.
It also manufactured motorcycles under the Husqvarna brand until the sale of
the unit in 2013. In addition to its manufacturing activities, the group also offers
a range of financial services.
The BMW Group is present around the world with its 30 production and
assembly plants in 14 countries as well as a research and development network
spread over 12 locations in 5 countries. The Group intends to remain focused
on the premium segments of the automotive industry. It had a workforce of
116,324 employees at the end of 2014.
Recent events
October 2014: the first car rolled off the assembly line of BMWs new plant
in Araquari, Brazil.
August 2015: 400 BMW i3s are commissioned for DriveNow car-sharing in
Copenhagen. The all-electric fleet is also interconnected with public
transport.
August 2015: BMW, together with AUDI and Daimler agree with Nokia to
acquire its mapping and location services business HERE.
176
Financial indicators
5.8. BMW
1,0
14%
0,9
12%
0,8
10%
8%
6%
4%
2%
0%
0,7
8%
0,6
0,5
6%
0,4
4%
0,3
0,2
2%
0,1
0,0
-2%
0%
2010 2011 2012 2013 2014
Sales by segment
Sales by region
Germany
Rest of Europe
China
United States
Rest of the Americas
Other
Automobiles
Financial Services
BMW Motorcycles
0,17
1,91 2,1%
23,7%
1,11;
0,3; 14%
4%
1,37;
17%
1,5;
19%
1,3;
16%
2,46;
30%
177
Statistical tables
5.8. BMW
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
6.05
0.52
8.5%
0.32
5.3%
0.33
5.4%
2011
6.88
13.8%
0.79
11.4%
0.49
7.1%
0.37
5.3%
2012
7.68
11.7%
0.80
10.4%
0.51
6.6%
0.52
6.8%
2013
7.61
-1.0%
0.77
10.1%
0.53
7.0%
0.67
8.8%
2014
8.04
5.7%
0.88
11.0%
0.58
7.2%
0.61
7.6%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
Segment
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Automobiles
5.97
74.2%
5.63
74.2%
6.0%
5.75
-2.1%
Financial Services
1.91
23.7%
1.83
23.7%
4.4%
1.79
2.3%
BMW Motorcycles
0.17
2.1%
0.15
2.1%
11.8%
0.15
1.2%
Region
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Germany
1.30
16.2%
1.18
15.5%
10.1%
1.22
-3.2%
Rest of Europe
2.46
30.6%
2.26
29.7%
9.2%
2.30
-1.8%
China
1.50
18.7%
1.53
20.2%
-2.3%
1.44
6.2%
United States
1.37
17.0%
1.27
16.7%
7.7%
1.34
-5.6%
Rest of the
Americas
0.30
3.7%
0.31
4.1%
-4.6%
0.28
9.9%
Other
1.11
13.9%
1.06
13.9%
5.5%
1.10
-3.7%
178
5.9. Honda
Presentation
Honda
2014 net consolidated revenues: 94.63 billion
Automotive
Business
72.1% of
revenue
Financial
services
11.7% of
revenue
Motorcycle
business
13.9% of
revenue
Power
Products
and Other
2.4% of
revenue
Recent events
March 2015: Honda announces it will expand motorcycle and automobile
production capacity in India in line with expected future growth in the
country.
July 2015: Honda announces that it has begun local production of its
Accord sedan in Nigeria, where the automobile market is expected to
expand in the future.
July 2015: Honda, together with Toyota and Nissan agree on key details
regarding a new joint support project for the development of hydrogen
station infrastructure in Japan.
Strategic focuses
Adapting its six-region structure
Honda has been operating on a six-region
structure in which each organisation is
autonomous. Each region has its own production
capacity and sales, development and purchasing
functions. However, some regions have not seen
the sales growth expected and production has
exceeded demand, having a negative impact on
cost structure. Therefore, Honda is aiming to
promote complementary relationships between
each of the regions to increase flexibility.
179
Financial indicators
5.9. Honda
90
30%
80
25%
70
20%
60
15%
50
10%
40
5%
30
0%
20
-5%
10
-10%
7,0
6,0
6%
5,0
5%
4,0
4%
3,0
3%
2,0
2%
1,0
1%
0,0
-15%
0%
2010 2011 2012 2013 2014
Sales by segment
Sales by region
Automobile Business
Motorcycle Business
Financial Services Business
Japan
North America
Asia
Other Region
Europe
2,29
11,04
2,4%
11,7%
13,11
13,9%
4,66;
15,18;
6,72;
5%
16%
7%
19,29;
20%
48,78;
52%
180
Statistical tables
5.9. Honda
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
63.45
4.05
6.4%
3.79
6.0%
7.93
12.5%
2011
56.43
-11.1%
1.64
2.9%
1.50
2.7%
7.67
13.6%
2012
70.13
24.3%
3.87
5.5%
2.61
3.7%
10.08
14.4%
2013
88.79
26.6%
5.85
6.6%
4.44
5.0%
6.58
7.4%
2014
94.63
6.6%
4.76
5.0%
3.62
3.8%
6.27
6.6%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
Segment
Automobile
Business
Motorcycle
Business
Financial Services
Business
Power Product &
Other Businesses
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
68.18
72.1%
65.15
72.1%
4.7%
54.74
19.0%
13.11
13.9%
11.81
13.9%
11.0%
9.51
24.2%
11.04
11.7%
4.96
11.7%
122.8%
3.89
27.3%
2.29
2.4%
2.16
2.4%
6.0%
1.99
8.4%
2012 sales
2012-2013 change
units: billion euros; % change; operating income and net income as % of sales
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
Japan
15.18
16.0%
15.74
18.7%
-3.6%
13.67
15.1%
North America
48.78
51.5%
39.73
47.3%
22.8%
32.75
21.3%
Asia
19.29
20.4%
16.61
19.8%
16.1%
13.68
21.5%
Other Region
6.72
7.1%
7.19
8.6%
-6.5%
6.23
15.5%
4.9%
4.80
5.7%
-3.0%
3.81
26.0%
Region
4.66
Europe
units: billion euros; % share; % change
181
5.10. PSA
Presentation
Strategic focuses
Implementing its Back in the Race plan
Automotive
66.4% of revenue
Automotive
equipment
31.2% of revenue
Finance
companies
2.5% of revenue
182
Financial indicators
5.10. PSA
3,0
58,00
2,0
4%
57,00
2%
56,00
55,00
0%
54,00
-2%
53,00
-4%
52,00
-6%
51,00
50,00
1,0
0%
0,0
-2%
-1,0
-4%
-2,0
-6%
-3,0
-8%
-4,0
-5,0
-8%
-10%
2010 2011 2012 2013 2014
Sales by segment
Sales by region
Automotive
Automotive Equipment
16,93
31,1%
Europe
North America
Latin America
India Pacific
Eurasia
Finance Companies
1,34
2,5%
2,1% 1,6%
4,4%
7,1%
7,4%
7,4%
36,08
66,4%
70,0%
183
Statistical tables
5.10. PSA
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
56.06
1.80
3.2%
1.13
2.0%
2.89
5.2%
2011
58.51
4.4%
1.09
1.9%
0.44
0.7%
3.63
6.2%
2012
55.45
-5.2%
-4.55
-8.2%
-5.81
-10.5%
3.73
6.7%
2013
53.08
-4.3%
0.77
1.4%
- 2.67
-5.0%
2.49
4.7%
2014
53.61
1.0%
0.95
1.8%
-0.97
-1.8%
2.43
4.5%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
Segment*
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Automotive
36.08
67.3%
36.46
67.3%
-1.0%
38.30
-4.8%
16.93
31.6%
16.07
31.6%
5.4%
15.46
3.9%
1.34
2.5%
1.46
2.5%
-8.4%
1.59
-7.8%
Automotive
Equipment
Finance
Companies
2014 sales
2014 % share
Europe
37.53
70.0%
North America
3.98
7.4%
Latin America
3.95
7.4%
3.83
7.1%
2.37
4.4%
India Pacific
1.10
2.1%
Eurasia
0.86
1.6%
Region
units: billion euros; % share; % change. As regions were redefined in 2014, a comparison cannot be made with previous years
184
5.11. FCA
Presentation
EMEA
18.1% of
revenue
Maserati
2.9% of
revenue
LATAM
8.9% of
revenue
Ferrari
2.6% of
revenue
APAC
6.5% of
revenue
Componen
ts
6.3% of
revenue
Other
0.4% of
revenue
Headquarters: London, UK
Fiat Chrysler Automobiles was established in 2014 by merging Fiat S.p.A.
into a new Netherlands-based holding company with headquarters in
London, UK. It operates through two main subsidiaries: FCA Italy (previously
Fiat Group Automobiles and FCA US (previously Chrysler LLC). Its brands
include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia as well as Ferrari and
Maserati.
The Peoples Bank of China owns 2% of Fiat Chrysler, making the Chinese
central bank one of the groups key investors
Recent events
January 2014: the company acquires the remaining 41.5% in FCA US that it
did not already own. In 2009 Fiat formed an alliance with Chrysler, a U.S.
automaker founded in 1925, in which Fiat took a majority interest, saving it
from bankruptcy.
August 2015: the companies announces an Alfa Romeo SUV will go into
production by the middle of 2016 as part of its expansion of its luxury
range.
September 2015: FCA will shift a considerable amount of its car production
to Mexico while keeping more profitable pickups and crossovers in the U.S.
Strategic focuses
Premium and luxury brand strategy
FCA has a wide spectrum of brands, including
those positioned at the premium (Jeep, Alfa
Romeo) and luxury (Maserati, Ferrari) end. The
group has decided to shift a significant part of its
portfolio towards the higher profit margins
offered by premium sales. It plans on
redeploying overcapacity in Europe and in the
EMEA for the worldwide production of premium
vehicles. It has recently expanded in the luxury
end through the introduction of new Maserati
models and is also currently expanding its range
of Alfa Romeos.
Expanding international business
FCA plans to expand sales in key markets
throughout the world by continuing efforts to
localise production of Fiat brand vehicles
through JVs in China and India and sales of Jeep
vehicles in LATAM and APAC by localising
production through new facilities in Brazil.
Localised production allows local demand to be
addressed without transportation costs and
import duties.
Continuing convergence of platforms
185
Financial indicators
5.11. FCA
4,0
100
60%
3,5
4,5%
50%
80
40%
60
30%
40
20%
20
10%
4,0%
3,0
3,5%
2,5
3,0%
2,0
2,5%
1,5
2,0%
1,5%
1,0
1,0%
0,5
0,5%
0,0
0%
0,0%
2010 2011 2012 2013 2014
Sales by region
Sales by segment
EMEA
LATAM
APAC
Components
Maserati
Ferrari
Other Activities
2,6%
2,9%
6,3%
6,5%
8,9%
North America
Brazil
China
Germany
2,0% 1,9%
18,1%
Other Countries
Italy
Other
United Kingdom
3,6%
5,1%
6,6%
7,3%
7,8%
56,8%
8,8%
186
Statistical tables
5.11. FCA
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
35.88
1.11
3.1%
0.09
0.2%
2.86
8.0%
2011
59.56
66.0%
2.45
4.1%
1.33
2.2%
5.53
9.3%
2012
83.96
41.0%
3.70
4.4%
0.04
0.1%
7.53
9.0%
2013
86.82
3.4%
3.35
3.9%
0.90
1.0%
7.44
8.6%
2014
96.09
10.7%
3.40
3.5%
0.57
0.6%
8.12
8.5%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Italy
7.05
7.3%
6.94
7.3%
1.7%
7.28
-4.6%
North America
54.60
56.8%
47.55
56.8%
14.8%
45.17
5.3%
Other Countries
8.42
8.8%
9.27
8.8%
-9.2%
10.22
-9.3%
Brazil
7.51
7.8%
8.43
7.8%
-10.9%
9.83
-14.3%
China
6.34
6.6%
4.44
5.1%
42.8%
2.70
64.6%
Germany
3.46
3.6%
3.05
3.5%
13.3%
3.17
-3.6%
United Kingdom
1.93
2.0%
1.45
1.7%
32.6%
1.43
1.7%
France
1.84
1.9%
1.96
2.3%
-6.1%
2.06
-4.8%
Other
4.94
5.1%
3.72
4.3%
32.8%
2.11
76.5%
Region
187
Statistical tables
5.11. FCA
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
NAFTA
52.18
54.3%
45.60
52.5%
14.4%
43.49
51.8%
EMEA
17.43
18.1%
16.78
19.3%
3.9%
17.26
20.6%
LATAM
8.53
8.9%
9.87
11.4%
-13.6%
10.97
13.1%
APAC
6.25
6.5%
4.62
5.3%
35.3%
3.13
3.7%
Components
6.06
6.3%
5.69
6.5%
6.6%
5.69
6.8%
Maserati
2.76
2.9%
0.0%
Ferrari
2.50
2.6%
0.0%
Other Activities
0.38
0.4%
4.25
4.9%
-91.0%
3.42
4.1%
Region
188
5.12. Tata
Presentation
Automotive
99.5% of revenue
Other operations
0.5% of revenue
Strategic focuses
Implementing its Horizonext plan
Tata Motors announced Horizonext in 2013. It is
a customer-focussed strategy with four prongs:
enriched customer purchase experiences, quality
services, world-class manufacturing practices and
new, modified and refreshed products to
improve revenue and ensure a competitive
pipeline for the future. As part of this it has
launched ConnectNext, a vehicle connectivity
service.
Expanding international business
Tata Motors seeks to continue entering new
markets and, in recent years, has grown its
market share in markets such as Kenya, Nigeria,
Tanzania, Congo and Senegal as well as Australia
and is focused on increasing its presence in
Southeast Asia and Latin America. It is also
considering expanding its global manufacturing
footprint to take advantage of import duty
differentials and local sourcing.
Cutting sales and production targets for China
189
Financial indicators
5.12. Tata
3,5
35
30%
3,0
9%
2,5
9%
2,0
9%
1,5
9%
1,0
9%
0,5
8%
30
25%
25
20%
20
15%
15
10%
10
5%
5
0
0,0
0%
8%
2010 2011 2012 2013 2014
Sales by segment
Sales by region
Automotive
Other
India
China
Rest of World
United Kingdom
Rest of Europe
United States
0,18
0,5%
4,25
12,1%
4,21
12,0%
4,77
13,6%
10,19
29,0%
4,7
13,4%
34,98
99,5%
7,03
20,0%
190
Statistical tables
5.12. Tata
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
17.09
1.52
8.9%
1.24
7.3%
1.09
6.4%
2011
22.06
29.1%
2.07
9.4%
1.81
8.2%
1.86
8.4%
2012
25.11
13.8%
2.17
8.7%
1.32
5.3%
2.51
10.0%
2013
30.86
22.9%
2.67
8.7%
1.87
6.1%
3.61
11.7%
2014
34.89
13.0%
3.19
9.1%
1.87
5.4%
4.23
12.1%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
Segment
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
Automotive
34.98
99.5%
30.99
99.5%
12.9%
25.11
23.4%
Other
0.18
0.5%
0.17
0.5%
6.5%
0.30
-45.0%
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
India
4.77
13.6%
4.61
14.8%
3.5%
5.99
-23.1%
China
10.19
29.0%
8.82
28.3%
15.6%
5.98
47.5%
Rest of World
7.03
20.0%
6.31
20.2%
11.5%
4.79
31.8%
United Kingdom
4.70
13.4%
3.92
12.6%
19.9%
2.99
31.0%
Rest of Europe
4.25
12.1%
3.92
12.6%
8.6%
2.98
31.5%
United States
4.21
12.0%
3.58
11.5%
17.6%
2.53
41.3%
Region
191
5.13. SAIC
Presentation
Financing
0.5% of revenue
July 2015: SAIC and GM announce they will invest around 4.5 billion over
the next few years to develop a new family of small Chevrolet vehicles
aimed at emerging markets. The cars should go on sale in 2019 in countries
such as India, China, Brazil and Mexico.
Strategic focuses
Continuing joint ventures
SAIC has a large number of joint ventures
including with General Motors and Volkswagen
as well as a three-way joint venture SAIC-GMWuling.
Chinese consumers continue to favour foreignbranded cars over local brands and joint venture
with mature-market companies help to get
around this. Furthermore, such partnerships have
allowed the company to achieve scale quickly
and have opened up doors to technological
expertise as well as management experience.
to move expand abroad
With growth slowing in Chinas car market,
Chinese
automakers
are
eyeing
export
opportunities but also overseas manufacturing
facilities. The joint venture SAIC-GM-Wuling
announced in 2015 that it would build a factory
in Indonesia to manufacture vehicles and
Indonesia and other Southeast Asian markets.
.. and to invest in green vehicles
Chinas national fuel economy standards are set
to become increasingly strict and carmakers are
therefore under pressure to build cleaner cars.
The SAIC-GM-Wuling joint venture is thus
planning to open a factory dedicated to green
cars in China with an annual capacity to build
200,000 electric or highly-electrified cars.
192
Financial indicators
5.13. SAIC
4,0
70
40%
3,5
7%
3,0
6%
2,5
5%
2,0
4%
1,5
3%
1,0
2%
0,5
1%
35%
60
30%
50
25%
40
20%
30
15%
20
10%
10
5%
0,0
0%
0%
2010 2011 2012 2013 2014
Sales by segment
Sales by region
Financial
0,4
0,5%
Other
0,14
0,2%
76,08
99,5%
76,34
99,8%
193
Statistical tables
5.13. SAIC
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
37.08
2.42
6.5%
1.67
4.5%
0.87
2.4%
2011
51.67
39.3%
3.57
6.9%
2.45
4.8%
1.96
3.8%
2012
57.63
11.5%
3.07
5.3%
2.52
4.4%
1.94
3.4%
2013
68.42
18.7%
2.01
2.9%
3.01
4.4%
1.90
2.8%
2014
76.17
11.3%
1.82
2.4%
3.40
4.5%
1.74
2.3%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
76.08
99.5%
68.39
99.5%
11.2%
58.08
17.7%
Financial
0.40
0.5%
0.30
0.5%
33.6%
0.31
-3.4%
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
China
76.34
99.8%
68.55
99.8%
11.4%
58.29
17.6%
Other
0.14
0.2%
0.13
0.2%
1.8%
0.10
29.6%
Segment
Region
194
5.14. Geely
Presentation
Strategic focuses
Recent events
September 2014: Geely announces that it has inked a deal with Apple to
integrate CarPlay into an upcoming compact SUV model, making it the first
Chinese automaker to support the infotainment system.
December 2014: The company replaces its Emgrand, Gleagle and Englon
brands and will market all brands under the single Geely brand.
April 2015: Geely is set to begin producing a small crossover utility vehicle
in 2016 on a common platform jointly developed with Volvo.
195
Financial indicators
5.14. Geely
0,3
20%
0,3
3,5
3,0
10%
2,5
2,0
0%
1,5
-10%
1,0
-20%
0,5
0,0
8%
7%
0,2
6%
5%
0,2
4%
0,1
3%
2%
0,1
1%
0,0
-30%
0%
Capital expenditure
Sales by region
0,27
0,26
0,25
0,24
0,23
0,28
0,03
0,04
0,04
0,07
0,08
1,1%
1,5%
1,5%
2,7%
0,23
3,1%
8,8%
0,22
0,21
2010 2011 2012 2013 2014
2,13
81,3%
196
Statistical tables
5.14. Geely
Consolidated
net sales
Annual %
change
Consolidated
operating
income
Consolidated
operating
margin
Net income
Net margin
Capex
Capex margin
2010
2.22
0.15
6.6%
0.15
6.8%
0.23
10.3%
2011
2.43
9.4%
0.16
6.5%
0.18
7.4%
0.26
10.5%
2012
2.92
19.9%
0.20
6.8%
0.24
8.3%
0.23
7.8%
2013
3.49
19.6%
0.28
8.0%
0.32
9.3%
0.25
7.0%
2014
2.64
-24.5%
0.11
4.0%
0.17
6.6%
0.27
10.1%
Year
units: billion euros; % change; operating income and net income as % of sales, capital expenditure and capital expenditure as % of sales
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
China
2.13
81.2%
2.68
76.5%
-20.5%
2.28
17.2%
Europe
0.23
8.9%
0.37
10.7%
-37.7%
0.21
78.0%
Africa
0.08
3.0%
0.06
1.8%
26.1%
0.03
146.1%
Middle East
0.07
2.6%
0.22
6.4%
-69.0%
0.24
-7.8%
Other Countries
0.04
1.6%
0.04
1.1%
5.4%
0.03
28.6%
Korea
0.04
1.4%
0.07
2.1%
-50.3%
0.08
-11.4%
0.03
1.2%
0.05
1.3%
-31.2%
0.04
30.3%
Region
197
5.15. Tesla
Presentation
Strategic focuses
Tesla Motors
198
Financial indicators
5.15. Tesla
0,0
400%
2,5
350%
2,0
300%
250%
1,5
200%
1,0
150%
100%
0,5
50%
0,0
0%
-0,1
-20%
-0,1
-40%
-0,2
-60%
-0,2
-80%
-0,3
-100%
-0,3
-120%
-0,4
0%
-140%
20102011201220132014
0,8
Capital expenditure
Sales by region
0,7
0,6
United States
China
Norway
Other
0,5
0,4
0,3
0,63
26,3%
1,1
45,8%
0,2
0,1
0,31
12,9%
0,0
2010 2011 2012 2013 2014
0,36
15,0%
199
Statistical tables
5.15. Tesla
Consolidated net
sales
Annual % change
Consolidated
operating income
Consolidated
operating margin
Net income
Net margin
2010
0.09
-0.11
-125.8%
-0.12
-132.2%
2011
0.15
74.9%
-0.19
-123.1%
-0.19
-124.6%
2012
0.31
102.3%
-0.29
-95.4%
- 0.30
-95.9%
2013
1.51
387.2%
-0.05
-3.0%
-0.06
-3.7%
2014
2.39
58.8%
-0.16
-6.9%
- 0.22
-9.2%
Year
units: billion euros; % change; operating income and net income as % of sales
2014 sales
2014 % share
2013 sales
2013 % share
2013-2014 change
2012 sales
2012-2013 change
United States
1.10
46.0%
1.11
73.5%
-0.5%
0.26
328.9%
China
0.36
14.9%
0.0%
Norway
0.31
12.9%
0.16
10.8%
89.9%
Other
0.63
26.2%
0.24
15.8%
164.0%
0.05
395.1%
Region
Capex
Capex ratio
R&D
R&D ratio
2010
0.08
90.3%
0.07
79.7%
2011
0.15
96.9%
0.16
102.3%
2012
0.18
57.9%
0.20
66.3%
2013
0.20
13.1%
0.17
11.5%
2014
0.73
30.3%
0.35
14.8%
Year
200
6. Statistical Appendix
201
Vehicle sales
unit(s): millions, %
Year
unit: % change
Volume
Growth
2005
65.9
2006
68.4
3.7%
2007
71.6
4.7%
2008
68.3
-4.5%
2009
65.6
-4.0%
2010
75.0
14.3%
2011
78.2
4.3%
2012
82.2
5.1%
2013
85.6
4.2%
2014
88.2
3.0%
2015*
89.1
1.0%
Growth Q2 2012
Q2 2015
Russia
-43.5%
-38.0%
Central*/South
America
-21.6%
-16.0%
Africa
2.3%
-4.0%
NAFTA
3.8%
0.0%
Europe
-1.1%
2.0%
Asia/Oceania/
Middle-East
16.6%
2.0%
Region
202
Year
Passenger Cars
TOYOTA
8,788,018
1,405,072
10,193,090
VOLKSWAGEN
9,766,293
128,598
9,894,891
GM
6,643,030
2,951,895
9,594,925
HYUNDAI
7,628,779
280,684
7,909,463
FORD
3,230,842
2,643,854
5,874,696
NISSAN
4,279,030
796,992
5,076,022
FIAT
1,904,618
2,812,345
4,716,963
HONDA
4,478,123
35,646
4,513,769
SUZUKI
2,543,077
473,633
3,016,710
PSA
2,521,833
395,213
2,917,046
RENAULT
2,398,555
363,414
2,761,969
203
Year
2010
2011
2012
2013
2014
Country/Region
Vehicles
1,300
2,100
3,500
4,400
15,900
Italy
1,492,642
France
2,210,927
Russia
2,545,666
UK
2,843,025
India
3,176,763
Germany
3,356,718
Brazil
3,498,012
Japan
5,562,887
US
16,841,973
China
23,491,893
204
Year
Growth
2006
30.3%
2007
21.7%
2008
7.3%
2009
52.9%
2010
33.2%
2011
5.2%
2012
7.1%
2013
15.7%
2014
9.9%
2015*
1.00%
Year
Rate
2008
7.02%
2009
6.72%
2010
6.21%
2011
5.73%
2012
4.88%
2013
4.43%
2014
4.24%
Source: Xerfi Global with the Board of Governors of the Federal Reserve System
205
Vehicle production
Country/Region
Volume
Russia
0.73
UK
0.84
Thailand
0.94
France
1.04
Canada
Year
Volume
Growth
Country/Region
2005
66.7
4.20%
2006
69.2
4.10%
2007
73.3
6.80%
1.10
2008
70.7
-3.60%
Brazil
1.28
2009
61.8
-12.40%
Spain
1.46
Mexico
1.81
2010
77.7
26.60%
India
2.05
2011
79.9
South Korea
2.32
2012
Germany
3.08
Japan
4.65
US
6.12
China
Source: Xerfi Global with OICA
12.10
CAGR
20052014
Q2
2014Q2
2015
EU
-5.7%
5.00%
Japan
-1.1%
-8.20%
USA
-0.3%
3.00%
Thailand
5.9%
-1.80%
3.20%
Mexico
8.1%
8.60%
84.2
6.60%
India
10.0%
7.20%
2013
87.7
4.00%
Indonesia
11.3%
-14.50%
2014
89.7
2.80%
2015*
91.2
0.50%
China
17.2%
2.60%
206
Vehicle exports
Biggest car exporters 2005
Country/Region
Germany
Japan
Canada
France
USA
Belgium
South Korea
UK
Spain
Mexico
Source: Xerfi Global with ITC
Value
87.27
64.05
29.95
27.21
25.11
23.18
21.89
19.52
19.34
10.76
Country/Region
Germany
Japan
USA
Canada
South Korea
UK
Mexico
Spain
Belgium
France
Value
120.41
66.70
46.40
33.76
33.72
31.87
24.37
24.02
22.79
14.44
Year
Value
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
391.19
425.96
454.70
432.82
312.03
418.94
457.42
500.40
506.67
527.19
207
Vehicle imports
Country/Region
USA
Value
100.85
Country/Region
USA
Value
116.16
UK
32.03
China
44.93
Germany
29.46
UK
34.86
Italy
24.55
Germany
34.71
France
21.34
France
23.30
Spain
18.49
Canada
20.31
Canada
16.12
Belgium
20.27
Belgium
15.90
Italy
17.12
Australia
7.45
Australia
11.92
Netherland
6.89
Spain
11.26
208
Year
Volume
Toyota
10193090
Volkswagen
9894891
General Motors
9594925
Hyundai
7909463
Ford
5874696
Nissan
5076022
Fiat-Chrysler
4716963
Honda
4513769
PSA
2917046
Renault
2761969
BMW
2165566
SAIC
2034924
Geely
890652
Tata
625646
Tesla
31655
209
Year
Value
Volkswagen
202.46
Toyota Motor
194.01
GM
116.57
Ford
107.71
FCA
96.09
Honda
94.63
Nissan
80.76
SAIC
76.17
Hyundai Motor
63.64
PSA
53.61
Renault
41.06
TATA
34.89
Kia Motors
33.58
BMW
8.04
Geely
2.64
Tesla
2.39
210
Year
Value
2010
826.87
2011
928.54
2012
1029.69
2013
1124.24
2014
1174.66
Year
Change
2010
5.1%
2011
5.3%
2012
4.8%
2013
5.6%
2014
5.5%
211
7. Sources
212
Company websites
Toyota
www.toyota.com
Volkswagen
www.volkswagen.com
General Motors
www.gm.com
Ford
www.daimler.com
Honda
www.honda.com
BMW
www.bmw.com
Renault
www.renault.com
Nissan
www.nissan.com
Tesla
www.teslamotors.com
FCA
www.fcagroup.com
PSA
www.psa.com
Hyundai
www.hyundai.com
Tata Motors
www.tatamotors.com
SAIC
www.saicgroup.com
GEELY
www.geely.com
213
International organisations
Eurostat
Eurostat
www.ec.europa.eu/eurostat
Financial Times
Financial Times
www.ft.com
OECD
World Bank
World Bank
www.worldbank.org
Intracen
CHELEM
214
OESA
OICA
215
8. Annexes
216
TOYOTA
2014 fiscal year ended 31 March 2015. Exchange rate: 1JPY= 0.0071EUR
GENERAL MOTORS
2014 fiscal year ended 31 December 2014. Exchange rate: 1USD = 0.7476EUR
VOLKSWAGEN
2014 fiscal year ended 31 December 2014. Exchange rate: 1EUR = 1EUR
FORD
2014 fiscal year ended 31 December 2014. Exchange rate: 1USD = 0.7476EUR
HYUNDAI
2014 fiscal year ended 31 December 2014. Exchange rate: 1KRW = 0.0007EUR
PSA
2014 fiscal year ended 31 December 2014. Exchange rate: 1EUR = 1EUR
BMW
2014 fiscal year ended 31 December 2014. Exchange rate: 1EUR = 1EUR
HONDA
2014 fiscal year ended 31 March 2015. Exchange rate: 1JPY= 0.0071EUR
FCA
2014 fiscal year ended 31 December 2014. Exchange rate: 1EUR = 1EUR
RENAULT
2014 fiscal year ended 31 December 2014. Exchange rate: 1EUR = 1EUR
TESLA
2014 fiscal year ended 31 December 2014. Exchange rate: 1USD = 0.7476EUR
NISSAN
2014 fiscal year ended 31 March 2015. Exchange rate: 1JPY= 0.0071EUR
TATA
2014 fiscal year ended 31 March 2015. Exchange rate: 1INR = 0.01338EUR
SAIC
2014 fiscal year ended 31 December 2014. Exchange rate: 1RMB = 0.1214EUR
GEELY
2014 fiscal year ended 31 December 2014. Exchange rate: 1RMB = 0.0964EUR
217
Statistical framework
Automobile companies are classified under the 3353 code of the Industry
Classification Benchmark (ICB).
Automobiles (3353) code of the ICB
classification
218
Glossary
CATEGORY
ENGLISH
ITEM
DEFINITION
ITEM
DEFINITION
CAGR
Capex
Free
cash flow
The cash that a company is able to generate after subtracting Cash flow
expenses needed to maintain its asset base. disponible
Goodwill
Gross profit
Basic financial
analysis
FRENCH
Impairment
charge
Liabilities
Net debt
Net profit/
net margin
Operating
profit/operating
margin
219
Glossary
CATEGORY
Basic financial
analysis
ENGLISH
ITEM
DEFINITION
ITEM
R&D expenditure
Return on assets
Return on equity
Sales
Working capital
Assets
BRICs
Macroeconomic
concepts
FRENCH
Business climate
Consumer price
index
Consumer
sentiment
Consumer
spending
DEFINITION
Dpenses associes au processus de recherche et de
dveloppement de nouveaux produits et de nouveaux
services. C'est un indicateur de la capacit d'innovation d'une
entreprise
Le retour sur actif est calcul en divisant le rsultat net d'une
entreprise par le total de son actif. Il mesure la capacit d'une
entreprise crer de la richesse partir de ce dont elle
dispose.
Le retour sur fonds propre est calcul en divisant le rsultat
net d'une entreprise par le total de ses fonds propres. Il
mesure la capacit d'une entreprise crer de la richesse
partir des capitaux apports par ses actionnaires.
Le chiffre d'affaires correspond au total des ventes hors taxes
de biens et de services. Il est le reflet des volumes couls,
mais aussi du prix de vente moyen, des taux de change et
des variations du mix produit.
Le fonds de roulement est la diffrence avec l'actif courant et
le passif courant. Un fonds de roulement positif signale que
l'entreprise pourrait honorer ses crances court terme avec
ses actifs court terme.
L'actif regroupe toutes les ressources conomiques dtenues
par une entreprise. I
Acronyme dsignant le Brsil, la Russie, l'Inde et la Chine, un
groupe de pays prsentant des similarits en termes de
dveloppement conomique. Ces pays affichent des taux de
croissance trs dynamiques dans tous les principaux marchs,
Le climat des affaires dsigne le sentiment conomique
dominant. Il est mesur par des indicateurs tablis sur la base
de questionnaires envoys des professionnels reprsentatifs
des grands secteurs d'activit.
Un indicateur qui mesure les variations de prix pour les biens
et les services achets par les mnages.
Le moral des mnages dsigne la perception de la situation
conomique qu'ont les mnages. Cet indicateur est souvent
utilis pour valuer les futures dpenses des mnages.
Dpenses des mnages en biens et services durables et nondurables. Cet indicateur est souvent utilis pour valuer la
demande court terme.
220