Global market review of front-end modules for passenger cars and light trucks forecasts to edition

Transcription

1 Global market review of front-end modules for passenger cars and light trucks forecasts to edition

2 Page i Global market review of front-end modules for passenger cars and light trucks forecasts to edition October 2008 By Matthew Beecham Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0) Fax: +44 (0) Web: Registered in England no:

3 Page ii Single-user licence edition This report is provided for individual use only. If you would like to share this report with your colleagues, please order additional copies or sign up for a multi-user licence by contacting: Kathryn Wedgbury Research manager, just-auto.com Tel: +44 (0) kathryn.wedgbury@just-auto.com Copyright statement 2008 All content copyright Aroq Limited. All rights reserved. This publication, or any part of it, may not be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Aroq Limited. This report is the product of extensive research work. It is protected by copyright under the Copyright, Designs and Patents Act The authors of Aroq Limited s research reports are drawn from a wide range of professional and academic disciplines. The facts within this report are believed to be correct at the time of publication but cannot be guaranteed. All information within this study has been reasonably verified to the author s and publisher s ability, but neither accept responsibility for loss arising from decisions based on this report. Incredible ROI for your budget single and multi-user licences We understand the pressure your research budget is under and price our reports realistically. You won t find our reports with four, or even five-figure price tags, but you will find that they make some of the competition look expensive. Each title is available to you on a single-user basis, supplied on the strict understanding that each title is not to be copied or shared. Alternatively, titles can be shared within departments or entire corporations via a costeffective multi-user licence. Multi-user licences can also save you money by avoiding unnecessary order duplication. To further add value, all multi-user

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5 Page iv Contents Contents Single-user licence edition... ii Copyright statement... ii Incredible ROI for your budget single and multi-user licences... ii just-auto.com membership... iii Contents... iv List of figures... vi List of tables... vii Preface... viii Research methodology... viii Report coverage... viii The author... ix Chapter 1 Introduction... 1 Chapter 2 The market... 2 Market trends... 2 Market players... 3 Decoma International... 3 Denso... 3 Faurecia... 4 HBPO... 4 Hyundai Mobis... 5 Peguform... 5 Plastal... 5 Valeo... 5 Emerging markets... 6 Czech Republic... 6 Russia... 6 Market shares... 6 World... 6 Europe... 8 Asia... 8 North America... 9 Market forecasts Market value Market value Chapter 3 Technical review Defining the elements Pedestrian protection... 18

6 Page v Contents Q&A with HBPO Q&A with Decoma Q&A with SABIC Innovative Plastics Chapter 4 Manufacturers Calsonic Kansei Decoma International Denso Corp Faurecia HBPO Peguform Plastal Visteon Appendix 1: Standard requirements for pedestrian protection Appendix 2: Q&A with JSP... 46

7 Page vi List of figures List of figures Figure 1: Worldwide automotive front-end module market shares for passenger cars and light truck applications, 2008 forecast (% of volume)... 7 Figure 2: European automotive front-end module market shares for passenger cars and light truck applications, 2008 forecast (% of volume)... 8 Figure 3: Asia automotive front-end module market shares for passenger cars and light truck applications, 2008 forecast (% of volume)... 9 Figure 4: NAFTA automotive front-end module market shares for passenger cars and light truck applications, 2008 forecast (% of volume) Figure 5: Faurecia supplies the front-end module for the BMW 1 Series convertible Figure 6: Faurecia supplies the front-end module carrier for the BMW X Figure 7: Faurecia supplies the front bumper for the Renault Clio II... 38

8 Page vii List of tables List of tables Table 1: Front-end module production in Europe, North America, South Korea, Japan, China, South America and other countries for passenger cars and light vehicles, (units) Table 2: Front-end module market value in Europe, North America, South Korea, Japan, China, South America and other countries for passenger cars and light vehicles, (EUR 000s) Table 3: Faurecia s sales by business segment, (EURm and %) Table 4: HBPO s facilities worldwide, Table 5: HBPO s turnover in 1999, 2001, 2003, 2005 and 2007 (EURm) Table 6: HBPO s employee head-count in 1999, 2001, 2003, 2005 and Table 7: HBPO s front-end module assembly volume in 1999, 2001, 2003, 2005 and 2007 (units)... 40

9 Page viii Preface Preface Research methodology This report is intended to provide an overview of the vehicle front-end modules market, providing top level market fitment, volume and value forecasts through Our forecasts of front-end modules are not extrapolative but dependent on the underlying drivers of supply and demand. Our forecasts are largely based on interviews with the author s extensive international network of industry contacts. This allows us to consider and explain the meaning and implications of industry events, rather than offer simple description based on incomplete data. Our approach is divided into two distinct methodologies: o qualitative interviews these are generally opinion-based, which aim to build knowledge about future front-end module market trends and company strategies; and o quantitative interviews typically fact-based, focused on establishing market values, shares, and volumes. Our research typically concentrates on applications for light vehicles which include all cars, light trucks and the various cross-over vehicle styles such as sports utility vehicles and people carriers. These vehicles collectively account for about xx% of the global vehicle build. For the purposes of this report, except where expressly stated, Europe includes Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Switzerland, Sweden, Turkey and the UK. North America includes the US, Canada and Mexico. Report coverage In this, the fourth edition of this report, just-auto reviews the key market drivers for vehicle front-end modules, and updates the market analysis. Following our

10 Page ix Preface market overview in Chapter 1, just-auto s product fitment forecasts in Chapter 2 predict in some detail how the front-end module market will evolve in Europe, North America, South Korea, Japan, China, South America and other countries from 2004 through to Chapter 3 provides an updated review of new product developments. This chapter includes exclusive Q&As with executives from HBPO, Decoma International and SABIC Innovative Plastics. Chapter 4 sets out brief profiles of the major manufactures, namely Calsonic Kansei, Decoma International, Denso, Faurecia, HBPO and Peguform. The author Matthew Beecham has more than 15 years experience of researching, writing and analysing market and technical trends in the global automotive components industry. Since 2000, he has served as an associate editor for just-auto. In addition to front-end modules, he authors a range of global auto components market research reviews, including batteries, braking systems, coatings, clutches, cockpits, driver assistance systems, door modules, electric motors, engine cooling systems, exhaust systems, fuel injection, fuel tanks, ignitions, interiors, lighting, mirrors, roof systems, shock absorbers, spark plugs, rotating electrics, tyre pressure monitoring systems, tyres, wheels and wipers. Matthew s freelance assignments have included working for AT Kearney, McKinsey, Kuwait Institute for Scientific Research, Motorsport Industry Association, Motor Industry Research Association and the Economist Intelligence Unit. He has also written for magazines including Car Graphic (Japan), JAMA (Japan) and Automotive Engineer (UK). He was awarded a PhD in automotive technology transfer from Cranfield University.

11 Page 1 Chapter 1 Introduction Chapter 1 Introduction Front-end modules (FEMs) typically encompass the bumper, headlights, radiator and various others parts. The interest in front-end modules has increased over the last ten years, partly due to the focus on vehicle safety issues and the need to comply with guidelines from the European Union (EU) for pedestrian safety. The main suppliers of front-end modules are HBPO, Faurecia, Visteon and Calsonic Kansei. Other manufacturers include Decoma International, Denso, Mobis, Expert and Peguform. Some of the tied manufacturers, such as Denso, are extensions of the OEMs. In terms of further market consolidation, executives from Decoma International told us: We believe anything can happen in this environment. Becoming a global front-end module supplier requires a significant investment in human capital, which many companies simply cannot invest in until a programme is awarded. This can be an inhibitor to many up-start module suppliers. Front-end modules are used widely by vehiclemakers in Europe and have gradually gained ground in North America. On the global stage, the main proponents of outsourcing front-end modules include the Volkswagen Group, Chrysler, Hyundai Kia, Renault-Nissan, General Motors, BMW and Fiat.

12 Page 2 Chapter 2 The market Chapter 2 The market Market trends Front-end modules, typically encompassing the bumper, headlights, radiator and various others parts, have been sourced by European vehiclemakers for some time. Although this market is showing some signs of maturing, the NAFTA, Chinese, Korean and even Japanese vehiclemakers are now taking a keen interest in outsourcing these modules. An auto executive told us: We see some OEMs which, to date, have not been too interested in front-end modules but are coming back to it. It also depends on how you define a front-end module. For example, some OEMs see the front-end module around the cooling system whereas some OEMs see it centred on the front-end carrier. The benefits to the vehiclemaker from sourcing complete front-end modules are clear: they can help cut the number of operations on the assembly line, reduce vehicle weight, cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. More specifically, shifting programme management responsibilities to the supplier allows the vehiclemaker to decrease its interfaces with different suppliers. An auto executive told us: FEMs is a product that requires a specific focus. It requires a specific mindset to go to the marketplace and convince the OEM to change the vehicle architecture or modify it significantly to outsource a significant chunk of the car. It is a job in itself. So you need to be organised to do that and have the right teams and skillsets and manufacturing capabilities and have the right programme management. It also means significant investment in manufacturing facilities and injection-moulding facilities in order to do that. Some suppliers will realise that they no longer have the right combination of capabilities and skills to fulfil the requirements to supply FEMs to the market. So they may feel that it is too difficult to survive. That is partly because the market is reaching a mature stag. While we see a little more growth in the coming years from OEMs who are already outsourcing FEMs, the next growth step would come from a big OEM such as Ford or GM. But you will still have a

13 Page 17 Chapter 3 Technical review Chapter 3 Technical review Defining the elements What is a front-end module? It depends who makes it and for whom. According to Faurecia, several components and sub-assemblies are built into the front-end module, including headlights, radiator, engine cooling fan systems and the bumper fascia and beam. It also contains wiring harnesses and related electrical functions. For example, front-end modules produced by HBPO integrate a structural frame, headlamps, bumper system with beam, energy absorber and fascia, engine cooling system, electronics and other parts. The major functions of the front-end components are to act as a body frame, taking in and cooling air, protecting the vehicle and its occupants in the event of a collision, properly illuminating the front of the vehicle as well as improved appearance and exterior styling. Not only is the front-end important aesthetically and functionally, but it also plays a fundamental role in safety, says Faurecia. During low-speed collisions, it must protect the expensive components in the front of the vehicle, thereby reducing repair costs. During collisions at higher speeds, its absorption capacities become secondary, says Faurecia, but it plays an important role in terms of establishing compatibility between different vehicle brands and models to compensate for differences in height and direct energies towards zones of structure deformation of the car. Above all, it has taken on a whole new dimension following recently-adopted standards of pedestrian protection. The front-end module brings benefits to both vehiclemakers and endconsumers. Vehiclemakers are able to reduce the number of operations on their assembly lines, simplify their supply chains, reduce modular weight and improve the ergonomic aspects of the assembly process. It can also help cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. Calsonic Kansei says there are a number for benefits to the OEM customer, including: o material cost reduction; o reduction in vehicle assembly time; o assembly line length reduction; o tooling investment reduction; and

14 Page 31 Chapter 4 Manufacturers Chapter 4 Manufacturers Calsonic Kansei Formed from the merger of Calsonic Corporation and Kansei Corporation in April 2000, Calsonic Kansei Corporation is an automotive parts and accessories manufacturer with a strong presence in major automotive markets worldwide. In addition to front-end modules, the company designs and manufactures exhaust systems, cockpit and engine and engine cooling systems. Calsonic Kansei s front-end module includes the radiator and core support, condenser, engine fan shroud, windscreen wiper washer tank, headlamp, bumper stay and reinforcement. The company s radiators are made using its proprietary brazing process and feature a corrosion-resistant design. Calsonic Kansei also designs and manufactures its own condensers. Calsonic Kansei was the first Japanese parts supplier to begin deliveries of cockpit and front-end modules. The company s aim in its development of frontend modules is to lighten the overall weight and to increase the fuel efficiency of vehicles by further reducing the number of individual parts in each module. For exam ple, its European front-end m odule cuts weight by xx% and reduces the num ber of parts by xx%. Decoma International Decoma International is a wholly-owned operating division of Magna International Inc. Decoma International develops and manufactures automotive exterior parts and systems, including fascias (bumpers), front and rear-end modules, liftgates and running boards, plastic body panels, exterior trim components, sealing systems and lighting components for cars and light trucks (including SUVs and minivans). Its front- and rear-end modules include front and rear fascias, energy absorbers, bumper beams, air dams, lighting, grille opening panels, grilles and complete module assemblies. Decom a International em ploys xxxxxx work ers at its m anufacturing, engineering and product development facilities in Canada, the US, Mexico, Germany, Belgium, the UK, Poland and Austria.

15 Page 45 Appendix 1: Standard requirements for pedestrian protection Appendix 1: Standard requirements for pedestrian protection European standard 2003/102/EC requires several types of certification tests. In contrast to usual crash test, it is not anthropomorphic test dummies that are impacted by the car, but rather impactors equipped with measurement instruments and representing parts of the body that are projected onto the vehicle. Since 1 October 2005, the following tests are mandatory: o Collision of the imitation leg with bumpers: the imitation leg, which is projected horizontally at xxkm/h onto the bum per, is equipped with an articulation representing the knee that measures dynamic flexion and lateral displacement or tearing. The maximum acceleration of the upper extremity of the fibia is also measured. This test can be replaced by the projection of an imitation upper leg at the same speed. Since this impactor is not articulated, the sum of impact forces and the movement of flexion of the impacted part are measured. o Collision of the imitation head of a child or small adult: the imitation head, weighing xxxkg, is projected sidewa ys onto the upper side of the bonnet at a speed of xxkm/h. The head perform ance criterion, or HPC, is measured. This quantifies the maximum resulting acceleration during the impact. o Two other tests are conducted only for evaluation purposes (they cannot be used to refuse certification): collision of the upper part of an im itation leg at xxkm /h against the front edge of the bonnet; and the collision of an im itation adult head weighing xxxk g at xxkm /h against the windscreen. As of 1 September 2010, the latter two tests will become mandatory for certification. The collision of the imitation child head with the upper face of the head will be done at xxkm /h and the acceptable criteria for im itation leg collision with the bumper will be even stricter. Source: Faurecia

16 Page 46 Appendix 2: Q&A with JSP Appendix 2: Q&A with JSP JSP is the world leader in the production and development of expanded polypropylene (EPP) and its applications, branded as ARPRO. An essential product for the automotive, packaging and consumer product industries, ARPRO is a source of strength, durability and weight reduction and is used in over xxm vehicles per annum. Its ARPRO is found in a range of autom otive applications, including bumpers and front-end modules. just-auto talked with Paul Compton, executive vice president and chief operating officer of JSP (Europe). just-auto: Could you sum up the main properties and advantages for automotive OEMs in using ARPRO EPP? Paul Compton: ARPRO expanded polypropylene can reduce system mass from xx% to xx% in s ys tems lik e seating. It is inert, unaffected by exposure to oil, grease, petroleum and most chemicals. For safety, it has an extremely high strength-to-weight ratio, quickly returns to its original shape following dynamic stress, withstands multiple impacts without significant deformation and provides acoustic enhancement in components used throughout the vehicle. j-a: The dimension creep syndrome is making each successive generation of cars heavier, so what is JSP doing to assist the auto industry in making lighter cars? PC: I believe we can offer the OEM and systems supplier a solution that can take kilos out of a car and this can be in many areas. In a recent example, the new Volvo XC60, we helped replace the anti-submarine ramp, traditionally a body-in-white element, with a moulded ARPRO unit. Not only did this deliver a weight saving, therefore improving fuel economy and responsiveness, but it also considerably simplified costly body-in-white tooling. ARPRO is strong and resilient enough to enable the ramp to be incorporated into the seat, replacing the traditional metal structure and contributing to a simpler vehicle platform. Tooling costs are also lowered. j-a: How are the tooling costs reduced?

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