The global market for automotive door modules: forecasts to SAMPLE

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1 The global market for automotive door modules: forecasts to SAMPLE Author: Matthew Beecham Published February 2003 No part of this publication may 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 permission of the publishers. All material published within this report is copyright Aroq Limited. This report is provided for individual use only. If you would like to share this report with your colleagues, purchase additional copies or sign up for a company wide licence please contact Oliver Wilkinson: Tel: +44 (0) Fax: +44 (0) oliver@just-auto.com Aroq Limited Registered in England no: Seneca House, Buntsford Hill Business Park, Bromsgrove, Worcs, B60 3DX, UK. Tel: +44 (0) Fax: +44 (0) Web: All content copyright Aroq Limited. All rights reserved. The global market for automotive door modules: forecasts to 2005

2 Table of Contents Table of Contents... i List of Tables... ii List of Figures... iii Chapter 1 Introduction... 1 Report coverage Market overview... 3 Market trends... 7 As one door closes... 9 another one opens Market size Market shares Interior door module market A foot in the door Structural door module market Window regulators Chapter 3 Manufacturers ArvinMeritor Brose...Error! Bookmark not defined. Delphi...Error! Bookmark not defined. Dura Automotive...Error! Bookmark not defined. Faurecia...Error! Bookmark not defined. Magna...Error! Bookmark not defined. Wagon...Error! Bookmark not defined. The global market for automotive door modules: forecasts to 2005

3 List of Tables Table 1: Cost comparison of the ULSAC door and state-of-the-art door ($)... 5 Table 2: Market penetration of interior door module¹ for passenger cars, (% of car production)...10 The global market for automotive door modules: forecasts to 2005

4 List of Figures Figure 1: Delphi s integrated door module... 9 Figure 2: Delphi s power sliding door concept...error! Bookmark not defined. Figure 3: Global market shares of interior door modules, Figure 4: Average wholesale cost of a complete door module, Figure 5: Global outsourced structural door module market shares, Figure 6: North American window lift regulator market, Figure 7: European window lift regulator market, 2002 (% of volume) Figure 8: ArvinMeritor s door module featuring a power double-lift window regulator with anti-trap and latch with superlocking actuator and multiplexing...error! Bookmark not defined. Figure 9: Door panel for the BMW X5, manufactured at Faurecia s facility in Fountain Inn, US...Error! Bookmark not defined. Figure 10: Door panel for the Mercedes-Benz CLK, manufactured at Faurecia s facility in Sheuerefeld, Germany... Error! Bookmark not defined. The global market for automotive door modules: forecasts to 2005

5 Chapter 1 Introduction Chapter 1 Introduction Opening doors to new markets It may not look like it, but the door is the second most complex system on a vehicle, the most complex system being the cockpit. It must look good, incorporate crash stability and, above all, be fit to open and close more than 50,000 times during the vehicle s life. It also hides a myriad of functional componentry such as the window lift mechanism, locks, electric motor to operate the wing mirror, wiring harness, various switches, loud speaker and a cable that connects the latch to the inner release handle. However, the assembly of all of these parts by hand is expensive and time consuming. In the mid-1980s, the Volkswagen Group was among the early adopters of outsourcing the door module or cassette, trimming in-house assembly costs in the process. Global market leader Brose produced its first door module for the Audi Coupé in A decade later, Brose won its first major order for door modules from Volkswagen, supplying units for the Passat. Production commenced in 1997 and Brose s door module business almost doubled in Door modules now account for Brose s fastest growing component segment. The trend in both Europe and the US is toward increasing complexity of the door componentry, adding more electronic functions and, in some cases, the glass itself. There are still some significant hurdles to cross before the industry sees the complete door in volume production. Manufacturers forecast that the demand for complete door modules will gain greater application as soon as the inherent paint, fit and finish problems are resolved as well as the problems inherent in supplier participation in unionised vehicle maker plants. Even though many vehicle makers have proclaimed their intentions to buy more and more systems and modules, there are still only two complete door examples in Europe where a supplier either ships a fully assembled door, which is attached to the car body (the Smart car), and a structural door where the OEM attaches the inner and outer panel (VW Touareg/Porsche Cayenne). Nonetheless, some predict the industry will begin to see the widespread shipment of complete modular doors consisting of structural components, glass, sealing and the inner electrical and mechanical workings by The global market for automotive door modules: forecasts to

6 Chapter 1 Introduction Report coverage Continuing our major series of niche component market studies, this justauto.com report reviews the key market drivers for vehicle door modules, and will give you important forward-looking analysis for the European, Japanese and North American markets. In Chapter two we present you our forecasts for product trends, fitment levels and market wholesale values for door modules through We have also identified market shares for window regulators in Europe and North America. Chapter three will provide you with brief profiles of the major interior and structural door module manufacturers. The global market for automotive door modules: forecasts to

7 Market overview There are two parts to a door module: interior and exterior. An interior door module consists of a rubber-sealed carrier made from plastic or metal. Delphi s Superplug was originally thermoplastic whereas Brose s and ArvinMeritor s designs are metal. Aluminium and magnesium are also being considered by manufacturers to reduce the weight of the carrier still further. A variety of door components are then fitted onto the carrier, forming a cassette, such as the window lift mechanism, locks, electric motor to operate the wing mirror, wiring harness, various switches, loud speaker and a cable that connects the latch to the inner release handle. The carrier plate is then tested and sealed to the outer door. Brose s solution is to seal the carrier plate to the outer door, dividing it into wet and dry chambers, thereby saving money on waterproofing. Brose claims that mounting electrical and electronic components in the dry chamber also increases reliability. The only difference between the front door module and the rear is that the front cassette includes a double guided window regulator (due to the angular shape of the front glass) to help guide the window into the door without any shudder. The level of componentry, however, can vary immensely from one trim level to the next. Manufacturers typically carry xx different part numbers for each of the four doors. Whereas one model may offer a manual latch with central locking, another may include an electric latch with super-locking. There are five different types of latch offered for the Golf, for example. There are more than xxx front door module combinations alone, ranging from all-manual to allelectronic. The door panel itself consists of several component parts that are attached to a substrate by various methods. Specific components of Lear Corp s door panel include vinyl or cloth-covered appliqués, armrests, radio speaker grilles, map pocket compartments, carpet and sound-reducing insulation. In addition, door panels often incorporate electronic and electrical distribution systems and products, including switches and wire harnesses for the control of power seats, windows, mirrors and door locks. The global market for automotive door modules: forecasts to

8 While the interior door module market is gaining momentum, the exterior or structural door panel market is still in its infancy. This module consists of a pressed metal frame, impact protection and exterior skin. Although structural doors are typically made from steel, combining extruded profiles, die cast components and pressings, there is a notable trend toward aluminium, particularly in the upmarket car segments. As one supplier said: Weight savings play a more important role in the sports-utility vehicle (SUV) segment than in any other. The opportunities for using aluminium not only for door structures but also in other areas of car bodies is higher with SUVs. Aluminium is also about xx% more expensive than steel so applications on some cars and regions are limited, as the supplier added: The North American car makers are driven by cost, not weight considerations. Unlike Europeans, they are not prepared to pay more for a lighter door. Our focus is on Europe, with the strongly increasing number of derivatives on one line. I think that there is a big opportunity for structural door modules being implemented on such cars with regard to lower volumes per derivative. We see annual growth rates in the area of xx% - xx%. Just xx% of exterior side doors are currently made by outside suppliers in North America. Jaguar uses Alcan's aluminium vehicle technology to provide the new XJ series with a unique aluminium structure. This is the first volume production car to have a uni-body structure composed predominantly of aluminium sheet. Compared to a conventional steel body, Jaguar claims that the new technology will enable weight savings of around xx% while also making the car around xx% stiffer than the previous XJ series. Bonnets, doors, bumpers and boot lids will also be made of aluminium which will allow the kerb weight of the new XJ to be xxxkg lighter than its predecessor, despite it being far better equipped. Both performance and fuel consumption will also be enhanced. Alcan's innovative technology combines adhesive bonding of structural sheet sections with self-piercing rivets, the culmination of around xx years of research and development in this area, much of it in partnership with Jaguar. Wagon has been the pioneer in this area, having supplied aluminium door assemblies since the mid-1980s. The global market for automotive door modules: forecasts to

9 Although aluminium offers weight benefits, there have been some notable advances in producing lightweight, high-strength steels. In 2001, the US-based xxxx revealed a higher-strength steel used with sheet hydroforming to show the potential for further mass reduction in steel vehicle body exterior parts. To demonstrate the benefits of high-strength steels, xxxx designed and manufactured a door panel. Through the use of manufacturing techniques such as tailored blanks, stamping and hydroforming, xxxx produced a frameless door that is up to xxkg lighter than the average benchmark for frameless doors and xx% lighter than the lightest door benchmarked. xxxx state that this door structure, with significant weight savings and comparable performance relative to state-of-the-art generic doors, has the potential to be made at a rate of xxx,000 units per year without cost penalty. Their detailed cost analysis follows: Table 1: Cost comparison of the xxxx door and state-of-the-art door ($) xxxx Stamped outer Sheet hydroformed outer State-of-the-art generic door Parts fabrication Materials Stamping SAMPLE ONLY Tailored blank stamping Sheet hydroforming Tube hydroforming Purchased parts Assembly Total cost of door $66.50 $70.00 $69.00 Note: Costs shown are for one door. Sources: xxxxx The global market for automotive door modules: forecasts to

10 Renault's Ellypse concept car, which was shown at the Paris motor show in September 2002, is designed to be lightweight and to use either recycled or easily recyclable materials. It uses polypropylene (which has a well developed recycling infrastructure) for the plastic body panels and interior trim and the car can be quickly dismantled according to the types of materials used. Polycarbonate plastic replaces conventional window glass as this is lighter and can be recycled. Recycled steel and aluminium account for around xx% of the vehicle's 980kg weight, steel being used mainly for chassis components while aluminium makes up the superstructure on which the plastic panels and doors are hung. The seating is lighter and thinner, and flooring is made from recycled leather and NVH insulation from recycled cotton and polyester. The engine chosen is a 16-valve turbodiesel. Renault says a full hybrid powertrain would be only slightly more efficient than the chosen engine but much more expensive. Several manufacturers are currently offering the concept of a complete door with interior trim and cassette melded into the exterior frame. However, most (more than xx%) of the exterior door panel is still manufactured by the vehicle maker. Outsourcing this area is happening, albeit gradually. The trend in both Europe and the US is toward increasing complexity of the SAMPLE ONLY door componentry, adding more electronic functions and, in some cases, the glass itself. There are still some significant hurdles to cross before the industry sees the complete door in volume production. Manufacturers forecast that the demand for complete door modules will gain greater application as soon as the inherent paint, fit and finish problems are resolved, as well as the problems inherent in supplier participation in unionised vehicle maker plants. Nonetheless, some predict the industry will begin to see the widespread shipment of complete modular doors consisting of structural components, glass, sealing and the inner electrical and mechanical workings by The global market for automotive door modules: forecasts to

11 Market trends As the door module increases in complexity, suppliers are forming alliances in order to offer the necessary design and project management skills. For example, since 1999, Johnson Controls has been working with Oxford Automotive to develop integrated door systems. Johnson Controls defines such systems in three levels: A Level 1 door system includes a door hardware cassette and door trim assembly which could include latch assembly, latch rods, window regulator, glass run channels, speaker, wire harness, glass and carrier that are shipped to the vehicle maker and installed onto the vehicle as separate components. SAMPLE A Level 2 door system combines the trim assembly and hardware cassette into a single system ready for a simple electrical connection and attachment to the door steel assembly. A Level 3 integrated door system is a complete door assembly or module that includes trim, hardware and exterior body components, fully finished and ready to assemble to the vehicle. The partners used the 2000 North American International Auto Show to display their Level 2 integrated door system. Johnson Controls designed and developed the trim and hardware module for the door while Oxford Automotive applied its skills in door metal to optimise the exterior door structure by adding strength and reducing weight. We view supplying door systems as evolutionary not revolutionary, said Lou Kincaid, group vice president, product and business development for Johnson Controls. We currently supply automakers with complete seat systems, overhead systems, cockpit systems and door trim systems, so teaming SAMPLE up with a leader such as Oxford Automotive to further develop Level 2 and Level 3 door systems is the next logical step in this evolutionary process. The global market for automotive door modules: forecasts to

12 Oxford Automotive designs and makes a range of door panels and components including closure panels, inner door panels, door assemblies, hinges, latches, locking mechanisms and sliding door mechanisms. The customer base for its door components includes both GM and Ford. Oxford Automotive supplies the door, hood and underbody assemblies for the GM Pontiac Aztec and Buick Rendezvous and the doors and structural components and apron assembly for the Ford Focus and Escort as well as the closure panels (doors, decklids, hoods and trunk lids) for the Saturn LS. In early 2002, Oxford Automotive filed for protection from creditors under Chapter 11 of the US bankruptcy code. Delphi Corp has also developed SAMPLE a range ONLY of modular door systems, dividing their product offering into four levels of integration. Level 1 contains door hardware and trim components, such as latches, connectors and trim. Level 2 sees these components integrated into multi-system door builds. At Level 3, Delphi integrates the door structure components into the multi-system module, based on either hardware or trim. At Level 4, Delphi takes on total responsibility for delivering a complete door to the vehicle maker, from inner trim to outer skin. In November 2002, Delphi announced that it will supply what it terms its modular door to DaimlerChrysler for its new Actros heavy-duty vehicle (see Delphi profile Chapter 3). Delphi says this module is at Level 3, adding that there is another unnamed vehicle currently being developed that will also feature its Level 3 door module. Delphi perceives that most of the European market is currently at Level 2. The global market for automotive door modules: forecasts to

13 Figure 1: Delphi s integrated door module SAMPLE Source: Delphi Corp. As one door closes Over the next five years, we could see some major changes in the way in which vehicle makers source their doors, at least in Europe. We are already seeing a strong trend towards modular and lightweight designs. In terms of modularity and outsourcing, however, opinions are divided with regard to whether doors could follow the same path as seats. As one auto executive of a door module supplier said: If you had asked me this question two years ago, I would have said yes, it will follow seating and there is a clear trend amongst car makers to outsource door assembly. Since then, however, we have seen a reversal in that trend. Volkswagen, for example, has completely changed its body-in-white technology strategy. They are going for more insourcing than outsourcing, aiming to again source all the components for a door module cassette rather than outsource the cassette itself. The global market for automotive door modules: forecasts to

14 another one opens Another supplier envisages a different scenario, forecasting a blossoming European market. He said: The OEM is now devoid of any expertise in the area of seats. That same progression is going to happen in the area of doors because there is really nothing technical or commercial in the product itself that should stop this from happening. I expect to see more alliances in the industry. But what really needs to happen to improve the efficiency in the door system is the interface management, whether it be product, commercial or project management. There may be 17 or more different engineering groups that touch the door within an OEM, such as occupant protection, metal stamping, structure, door trim, electrical and electronics, sealing systems and glass. But it is difficult to get 17 people to agree. Good interface management is an absolute must. Market size The global volume of door modules was around 11 million in 1999, 12 million in 2000 and 33 million in By 2005, we forecast that 40% of new vehicles will be built using interior door modules, up from about 27% in In North America, there are currently SAMPLE ONLY around ten vehicle platforms where Level 1 door modules are delivered to the trackside. Although the American market is widely expected to increase its use of door modules, the rate of acceleration will be more gradual than that which is witnessed in Europe. In Japan, however, the market penetration for interior as well as structural door modules is expected to remain low through this decade due to vehicle maker s component sourcing strategies. Table 2: Market penetration of interior door module¹ for passenger cars, (% of car production) Western Europe North America Japan ¹ Here, we define a door module as combining the trim assembly and hardware cassette into a single system ready for a simple electrical connection and attachment to the door steel assembly. SAMPLE Sources: Industry estimates; just-auto.com. The global market for automotive door modules: forecasts to

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16 Market shares Interior door module market Family-owned Brose leads the world market for door modules. In 2000, Brose delivered more than six million door system pieces in-line sequence to vehicle makers in Europe, North and South America, Africa and Asia, giving the company a 50% global share. In 2002, SAMPLE Brose claimed a 45% share of the world market and a 50% share in Europe (including a 70% share in Germany). From its just-in-time facilities in Brazil, Mexico, Germany and China, Brose can deliver a door module to the vehicle maker s assembly line in three hours from receipt of order. Brose s competitors on the world stage include ArvinMeritor, Delphi and Magna. A foot in the door In addition, manufacturers with origins in seat supply, such as Lear Corp, Johnson Controls and Magna are all attempting to gain a foothold in the door module market in their efforts to supply complete interiors, partly through the acquisition of window regulator and door trim manufacturers. Valeo recently launched a new e-module concept that is intended to help vehicle makers flexibly integrate increasingly complex electrical, electronic and mechanical features into future vehicles. The e-module is a design for integration for individual components. These can later be combined into a single sub-module with common connectors and mounting points. Although the e-module concept will find applications in many locations in a vehicle, Valeo is concentrating the first application of the e-module concept on tailgates and other types of rear door openings. Car maker SAMPLE engineers and designers have told key automotive supplier Valeo that feature-packed rear doors pose many challenges when it comes to including more electronic features yet achieving distinctive styling, standard components, build quality and durability/performance targets, while cutting assembly costs. The global market for automotive door modules: forecasts to

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18 Figure 2: Global market shares of interior door modules, 2002 (% of volume) Magna (Intier) 7% Others 3% Delphi 20% SAMPLE Brose 45% Arvin Meritor 25% % Tolal Sources: just-auto.com; industry estimates. The global market for automotive door modules: forecasts to

19 Figure 3: Average wholesale cost of a complete door module, 2002 (% of total cost per module) Exterior door trim panel 28% Latch 6% Window regulator 10% SAMPLE Various other electrical parts 31% Interior door trim panel 25% % Latch 6 Window regulator 10 Various other electrical parts 31 Interior door trim panel 25 Exterior door trim panel 28 Total 100 Sources: just-auto.com; industry estimates. Structural door module market Dura Automotive and Wagon dominate the global outsourced structural door market with a collective 78% share, followed by the Italian supplier Emarc and some other small local players. The vast majority of this business is in Europe. There is no structural door business SAMPLE in North America, as they use pressed metal doors. In 2001, Dura posted sales of $197.7 million for its structural door module business, equivalent to 8% of total sales. The global market for automotive door modules: forecasts to

20 Figure 4: Global outsourced structural door module market shares, 2002 (% of volume) Others 15% Emarc 7% Dura Automotive 40% SAMPLE Wagon 38% % Dura Automotive 40 Wagon 38 Emarc 7 Others 15 Total 100 Sources: just-auto.com; industry estimates. Window regulators The global market for automotive door modules: forecasts to

21 Figure 5: North American window lift regulator market, 2002 (% of volume) Others 35% Magna 35% SAMPLE ArvinMeritor 15% Brose 15% % Magna 35 Brose 15 ArvinMeritor 15 Others 35 Total 100 Sources: just-auto.com; industry estimates. The European automotive window regulator market is led by Brose with a xx% share, followed by xxx, xx xxx and some other, smaller and local suppliers based in xxx and xx. The global market for automotive door modules: forecasts to

22 Figure 6: European window lift regulator market, 2002 (% of volume) Others 17% Kuster 15% Brose 50% SAMPLE ArvinMeritor 18% % Brose 50 ArvinMeritor 18 Kuster 15 Others 17 Total 100 Sources: just-auto.com; industry estimates. The global market for automotive door modules: forecasts to

23 Chapter 3 Manufacturers Chapter 3 Manufacturers ArvinMeritor ArvinMeritor designs and manufactures a variety of modular door systems, plus a range of manual and power electric window regulators. Its products include a variety of window regulators and door modules such as arm and sector (cross-arm, single-arm and divergent), drum and cable (double-lift, single-lift and bare cable), push-pull (double-lift, single-lift and compact) and electronically controlled motors. Its door modules feature power double-lift window regulators with anti-squeeze and super-locking actuators. ArvinMeritor manufactures more than 30 million window regulators and one million door modules Pages removed The global market for automotive door modules: forecasts to