"International Location Strategies of the European commercial vehicle manufacturers"

Transcription

1 VDA Press Workshop, July 14, 2006 "International Location Strategies of the European commercial vehicle manufacturers" Håkan Samuelsson Chairman of the Executive Board of MAN AG 1

2 Agenda An Overview of the MAN Group The Global Economic Background Location strategies of the MAN Nutzfahrzeuge Group Global production network Worldwide consolidation of sales activities Summary 2

3 The MAN Group Industrial group in the "Transport Related Engineering" sector Approx. 13 billion in revenues, almost 50,000 employees in 120 countries Commercial vehicles Trucks Buses Engines Services Diesel engines 2-stroke 4-stroke Services Turbomachines Compressors Turbines Reactors Services Industrial services Contracting Logistics Service platform 3

4 World market for commercial vehicles (trucks > 6 t) North America 580,000 Western Europe 330,000 Eastern Europe 129,000 Asia 850,000 Africa 45,000 South America 130,000 Australia 19,000 4

5 World market for buses ( > 8 t ) North America 18,000 (+30,000 school buses) Western Europe 28,000 Eastern Europe 20,000 Middle East 6,000 Asia 100,000 Africa 5,000 South America 20,000 Australia 1,000 5

6 International growth development for trucks Number of units

7 Strategic goals determine location strategy International growth/strengthening market position Increasing productivity/reducing costs Establishing and expanding presence in growth regions International production network / cost mix Cooperative projects 7

8 Average labor costs in manufacturing* [ /hour] 27.6 Europe Africa Americas Asia est. Germany Sweden East. Germany Slovenia** Hungary/Czech Rep Poland/Slovakia Romania** Ukraine South Africa *Direct remuneration + additional personnel costs, as of 2004 **Figures for 2002 USA Brazil Mexico China India Source: Institut der deutschen Wirtschaft 8

9 Focus on the production network Eastern Europe, CIS: New truck plant in Niepolomice (Krakow, PL) Asia / Middle East: New truck plant via a joint venture in India Mexico / Latin America: New bus plant in Mexico 9

10 International growth The new truck plant in Niepolomice (Krakow, PL) Capacity: 15,000 units SOP: mid

11 International growth Eastern Europe and the Middle East Optimization of vehicle specifications with a modular concept: Tested TGA technology Robust fittings Equipment optimized to meet the needs of regional customers Semitrailer trucks 19 t 4x2, 33 t 6x4 Powertrain design up to Euro 3 Low level of technical complexity Preset number of equipment packages 11

12 International growth MAN FORCE TRUCKS Pvt. Ltd. Capacity: 24,000 units SOP: October

13 International growth Focus on Asia / Middle East Product characteristics: - GVW t - Robust chassis with 20"/22.5" tires - No TG technology, basic equipment - High proportion of local content - Components with MAN technology: MAN Cargo Line Cab Axles Engine 13

14 International growth Bus assembly plant in Mexico Bodies for coaches Lion's Coach complete buses 14

15 International growth Focus on sales Eastern Europe, CIS: Investment in sales network Asia / Middle East: Joint venture - MAN FORCE TRUCKS Pvt. Ltd. Sales cooperation with MAN Ferrostaal Mexico / Latin America: Sales cooperation with MAN Ferrostaal 15

16 International growth Stronger regional sales activities Moscow Beijing Mexico Dubai MAN Force Consolidation of the sales activities of all MAN Group units Use of existing networks, reduction of fixed costs, sharing of expertise, etc. 16

17 Summary Growth regions: - Eastern Europe / CIS - Asia / Middle East - Latin America Need to expand worldwide presence with new production and sales locations Market-appropriate vehicles must be developed and offered for developing countries and emerging markets Focus of R+D remains in Germany 17

18 Thank you for your attention. 18