The North American Automotive Supplier Report

Transcription

1 SupplierBusiness The North American Automotive Supplier Report 2013 Edition Sponsored by FINANCIAL ADVISORS WITH DEEP AUTOMOTIVE INSIGHTS

2 CONTENTS Introduction... 9 Economics of the automotive industry in North America North America macroeconomic overview Economic review Economic outlook North America light vehicle sales review and outlook A quick recovery Driving factors and outlook Canada and Mexico Changing business models Price pressure Segmentation shifts North American Light vehicle production review and outlook The world s third largest hub The Detroit Three, capacity and profitability Imports less in vogue Global platforms coming to North America North America exports potential Shifts within the region OEMs activity and supplier management Overview of OEMs activity and supply base management Major issue emerging from the crisis OEMs want to deal with fewer suppliers OEMs changing sourcing patterns Different management of relations with suppliers OEM Overview FORD GENERAL MOTORS CHRYSLER-FIAT TOYOTA HONDA NISSAN HYUNDAI-KIA VOLKSWAGEN MERCEDES BMW OTHER OEMs (MAZDA, SUBARU, MITSUBISHI) Recent Developments and outlook for the North American supply base About 200 suppliers were liquidated IHS Global Limited 3

3 Best-selling suppliers in North America Domestic rising stars? Profitability, revenue and costs outlook for North American suppliers Improved financial health, not translating into massive investments Profitability rather than market share are at the top of suppliers agenda Drivers of improved profitability Structural changes in customer portfolio Cost containment measures have lowered the break-even point Lower labour cost Plenty of dry powder, but investment momentum is slowly picking up Capital spending and investment momentum of suppliers in North America Why investment momentum is slower than it should be Who s investing? Houlihan Lokey M&A Insights Notable Financial Buyer M&A Transactions Notable Strategic Buyer M&A Transactions Conclusion Supplier merger and acquisition activity in North America Mild recovery from the sudden stop in Role of private equity Supplier Profiles M Automotive ABC Group Aisin Seiki Akebono Brake Alcoa Alfa Alpine Electronics American Axle and Manufacturing Asahi Glass Autoliv Autoneum BASF Bayer MaterialScience LLC Behr Benteler BorgWarner Bosch Bridgestone Brose Camaco IHS Global Limited 4

4 Clarion Continental AG Cooper Standard Cooper Tire & Rubber Company Cummins Delphi Denso Dow Automotive DuPont Dura Automotive Eaton Eberspächer Edscha Exide Technologies Faurecia Federal-Mogul Flex-N-Gate Freescale Freudenberg-NOK GECOM Gentex Gibbs Die Casting GKN Goodyear Grupo Antolin Guardian Harman Hayes Lemmerz Hella Henniges Automotive Hitachi Honeywell Hutchinson Inalfa Roof Systems Inergy Johnson Controls Johnson Electric JTEKT Keihin Key Safety Systems Koito IHS Global Limited 5

5 Kongsberg Lacks Lear Linamar Magna Magneti Marelli MAHLE Mando America Corp Martinrea Meridian Automotive Meritor Metaldyne Michelin Mitsuba Mitsubishi Electric Multimatic Navistar NHK Spring Nihon Plast Nippon Sheet Glass (NSG) Nissin Kogyo Novelis NSK NTN Ogihara Omron Osram Owens Corning Panasonic Parker Hannifin Philips Automotive Lighting NA Pioneer Plastic Omnium PPG Industries Remy International NA Revstone Saint-Gobain NA Samvardhan Motherson Group Sanden Sanluis Rassini NA Saturn Electronics & Engineering IHS Global Limited 6

6 Schaeffler Shiloh Industries Showa SKF Stanley Electric Stoneridge Strattec Security Sumitomo Electric Superior Industries Takata Teksid Tenneco ThyssenKrupp TI Automotive Timken Tokai Rika Tower Automotive Toyoda Gosei Toyota Boshoku Trelleborg TRW TS Tech UGN Valeo Visteon Webasto Woodbridge Yazaki ZF IHS Global Limited 7

7 TABLES AND FIGURES Figure 1: Change in US real GDP (Source: IHS) Figure 2: US Labor market employment forecast (Source: IHS) Figure 3: Trade Balance, Exports and Imports of Goods and Services (Source: US Census Bureau) Figure 4: US Gas Prices (monthly average) [Source: IHS] Figure 5: Light Vehicle sales North America [Source: IHS Automotive] Figure 6: Light vehicle production and capacity utilization in North America [Source: IHS Automotive] Figure 7: Major currency exchange versus US dollar (March 2003 average exchange rate as 1) (Source: Federal Reserve) Figure 8: Top 10 US Import partners for motor vehicle parts (HS ) (in billions USD) [Source: Foreign Trade Division, U.S. Census Bureau] Figure 9: Average hourly earnings of production and nonsupervisory employees at OEMs and suppliers (2012 data refers to average of January to November period) [Source: Bureau of Labor Statistics] Figure 10: Employees at OEM and suppliers (in thousands) (2012 data refers to average of January to November period) [Source: Bureau of Labor statistics] Figure 11: Number of supplier investment announcements by parent country of origin 64 Figure 12: Disclosed investment value of supplier investments for announcements between January 2012 and January 2013 (in USD million) Figure 13: Supplier investment announcements between January 2012 and January 2013 by target component area Figure 14: Announced investment value by beneficiary location (in USD million) Figure 15: Number of deals announced between January 2012 and January 2013 involving North American suppliers (by buyer country of origin) Figure 16: U.S. Light Vehicle SAAR [Source: IHS Automotive] Figure 17: North American Light Vehicle Production [Source: IHS Automotive] Table 1: US Imports CAGRs for top 10 countries [Source: Foreign Trade Division, U.S. Census Bureau] Table 2: Top 15 Automotive suppliers by 2011 automotive sales [Sources: company reports, IHS estimates)[note: non- USD amounts converted to USD with early 2013 exchange rates] Table 3: OESA members Breakeven volumes (in millions units) [Source: OESA Barometer survey] Table 4: Key M&A Activity involving North American suppliers in 2012 and 2013 (* indicates private-equity company) IHS Global Limited 8