Volkswagen Argentina - Multisectoral Mission for Investments -

Transcription

1 Volkswagen Argentina - Multisectoral Mission for Investments - Leonardo Ezcurra Supply Executive Manager Volkswagen Argentina Hamburg, June 2011

2 Table of contents 1. The Volkswagen Group 1.1 The strategy The global deliveries from 2009 to Volkswagen South America Sites production and deliveries to customers of VWB & VWA 2.1 Product range and its segmentation 3. Volkswagen Argentina 3.1 Car plant PACHECO and Gearbox plant CORDOBA 3.2 Volkswagen Argentina Ranking automotive industry 3.3 The development of Volkswagen Argentina 3.4 The nationalization strategy 4. Examples of business opportunities in Argentina 5. Analyse of the automotive supplier industry 2

3 1. The Volkswagen Group One of the world s leading automobile manufacturers and the largest carmaker in Europe 11.4% of Car marketshare Mio produced units 126,9 billion euros of sales revenues 10 brands from 7 European countries: (Volkswagen, Audi, SEAT, Skoda, Volkswagen Nutzfahrzeuge, Bentley, Lamborghini, Scania and Porsche) 64 production plants in: 15 European countries and a further 7 countries in the Americas, Asia and Africa Nearly employees worldwide 3

4 6 Potential upside - Product portfolio extention - North American expansion and market recovery - Commercial vehicle strategy and market recovery - Financial Services: strengthen the automotive value chain 5 Synergy potential - Leveraging best practices across the Group - Purchasing, production, and distribution benefits Top employer 1 Growth market focus - Increased market penetration - Emerging markets expansion - Balanced global footprint Leading in customer satisfaction and quality Volumes 10 million units p.a.² Volkswagen Group profit before tax margin 8% 4 Operating profit measures - Strong cost control - Process/product optimization - Regional scale effects 2 Modular toolkit strategy - Reduction in investment, development and unit costs - Scale and efficiency effects - Increased production flexibility - Reduced time to market 3 Capital discipline - 16% Rol target in automotive business - 20% RoE goal in Financial Services - Around 6% automotive capex in PPE/sales

5 Diversified Economic Exposure: Attractive Mix of developed and emerging markets 5

6 1.2 Volkswagen Group Deliveries to customers by market (in Tsd. units) VW Group - Worldwide 6

7 2. Volkswagen South America Sites production & deliveries to customers Brazil +9.9% +4.4% Argentina +31.1% 7

8 DRAFT 2.1 Volkswagen Brazil & Volkswagen Argentina Utility A00 A0 A Pick up Anchieta Plant /year VWB Anchieta Plant /year Anchieta Plant /year Curitiba Plant /year Curitiba Plant /year Anchieta Plant /year VWA Pacheco Plant /year Pacheco Plant /year 8

9 3.1 Volkswagen Argentina - Car plant PACHECO Building area: m2 Employees: total Capacity: 540 units per day % Amarok % Amarok 46% Suran 37% Suran Car production: estimated increase of 192% from 2000 to

10 3.1 Volkswagen Argentina - Gearbox plant CORDOBA Building area: m2 Employees: total Capacity: units per day 68 % MQ % MQ200 32% MQ250 35% MQ250 Gearbox production: estimated increase of 242% from 2000 to

11 3.2 VW Argentina Ranking automotive industry Production FC2011 ( units) Sales to dealers FC2011 ( units) 11

12 3.3 The development of Volkswagen Argentina Investments developments (EUR Mio.) Employees development The development of VW Argentina Nearly 60 Mio. EUR invested for purchasing issues The total average investment in the last 4 years was 228 Mio. A quarter of the total investments was planned for purchasing Between 1995 and 2010 the number of employees increased 148%. 12

13 3.4 Nationalization strategy material content current situation Total Material Cost Suran Total Material Cost Amarok Total Material Cost MQ200 & MQ250 Brazil Germany Brazil Germany Brazil Germany Argentina Argentina Argentina Despite a high local-regional material content, there are many localization opportunities 13

14 3.4 Nationalization strategy - suppliers cluster per origin Number of supplier Turnover suppliers 100 % (1.203 Mio. EURO) 71 % (854 Mio. EURO) 29 % (349 Mio. EURO) TOTAL Global Suppliers Local Suppliers Ca. 70% of turnover managed by global suppliers 14

15 DRAFT 4. Examples of business opportunities Gearshift command Technology Fine blanking High precision assembly Industry overview Gearboxes production (quantities in JDP FC2013) Business opportunity Hi-tech components must be localized with high added value Cinematic control 5000 VW main user of these components/technology Other OEM s producing gearboxes locally: FIAT and PSA Group Gearbox shifting tower Technology Fine blanking Precision machining V W FIA T PSA Annual volume in 2013: VW: 1,4 Mio Fiat: 0,24 Mio Great possibilities of creating an alliance: Merger & Acquisition, Joint Ventures, technological agreements, licences, etc.) Laser welding PSA: 0,17 Mio High precision assembly TOTAL PRODUCTION: 1,8 Mio 15

16 DRAFT 4. Examples of business opportunities Tires Technology Black and green tires Winter tires (only export) Normal and all-terrain (AT) Size range from 13 to 19 (automobile and pick ups) Industry overview VW Business Volume Tires/year Automotive industry Business opportunity Suppliers spectrum: 2 international players + 1 local company 3 OEM s producing pick ups for all markets Possibility of creating a successful product diversification strategy Seats components Technology Metallic structure Foaming Textil, leather (eco-leather and natural covers) Industry overview VW Product Business opportunity Installation rate of leather seatings growing for local/export markets High potential for developing local raw material IR Suran: 5% IR Amarok: 28% 16

17 DRAFT 4. Examples of business opportunities Steering wheel Technology Industry overview Business opportunity Mg structure With and without airbag module Leather finishing and plastic parts/year Suppliers spectrum: 1 local company (low tech) without current business for all markets % imported for all OEM s VW Business Volume Automotive industry Rubber components - Sealings: - Hoses: Sealings Industry overview Hoses Business opportunity 1 international player for sealings No international companies for hoses in ARG Small companies producing spare parts (low Q degree and technology) 17

18 5. Analyse of the automotive supplier industry Potential Entrants: - Great potential for cooperations with small already existing companies - Adequate industrial base - High educated workforce - Well-developed infrastructure Supplier Power: - Good business environment with suppliers within MERCOSUR - Good development of regional sources (mining, energy, oil, etc.) - Large range of raw materials (steel, plastic, alloyed materials, etc.) Industry Rivalry: No competitors market gap - Missing know-how - Lack of technical capacities Buyer Power: - Great number of automotive companies in MERCOSUR - SAM markets with a high growing potential Threats of substitutes: -Low threats of substitues because of the global design and specific products with high technical requirements Just for Companies with high KNOW-HOW Attractive business environment + good business opportunities 18

19 Thank you very much for your attention 19