PORTUGAL AUTO COMPONENTS INDUSTRY Lisbon, 29 November 2018
INDEX 1. AFIA 2. AUTO COMPONENTS INDUSTRY 3. COMPETITIVE FACTORS 4. PORTUGAL & MOROCCO 2
INDEX 1. AFIA 2. AUTO COMPONENTS INDUSTRY 3. COMPETITIVE FACTORS 4. PORTUGAL & MOROCCO 3
Timeline Foundation of the 78th Section of Motor Vehicle Parts and Accessories Suppliers at AIP Member of CLEPA European Association of Automotive Suppliers Member of CIP Portuguese Business Confederation Foundation of AFIA Non-profit association Co-founder of CEIIA Portuguese Centre for Excellence and Innovation in the Automotive Industry Co-founder Portuguese Association for the Automotive Cluster 4
Mission & Vision AFIA helps to develop its members as suppliers to the automotive industry: Representing them towards industrial and public authorities and media Spreading information about the sector and the market Creating opportunities for suppliers to exchange information and strengthen relations Initiating activities to increase competence and to support internationalization Supporting foreign buyers in finding Portuguese suppliers Supporting foreign investors in start-up and integration of new activities 5
INDEX 1. AFIA 2. AUTO COMPONENTS INDUSTRY 3. COMPETITIVE FACTORS 4. PORTUGAL & MOROCCO 6
Key Data (2017) COMPANIES EMPLOYMENT 230 51.000 <1% Manufacturing industry companies 7% Manufacturing industry employment TURNOVER EXPORTS 10,4 Bil EUR 8,8 Bil EUR 5% GDP Gross Domestic Product 16% Exports of tradeable goods 7
Location of Manufacturing Sites (nº, 2017) MANUFACTURING SITES 260 Some enterprises have more than one manufacturing site VIANA DO CASTELO 27 BRAGA 36 AFIA s office PORTO 46 AVEIRO 58 COIMBRA 7 LEIRIA 15 SANTARÉM 13 LISBOA 8 SETÚBAL 19 4 BRAGANÇA 1 VILA REAL 10 VISEU 4 GUARDA 1 CASTELO BRANCO 2 PORTALEGRE 9 ÉVORA MANUFACTURING SITES >40 21-40 11-20 6-10 1-5 0 8
Direct Employment (annual average) 53.000 nº Employees (annual average) 51.000 49.000 47.000 45.300 45.900 45.000 43.000 41.000 39.000 41.500 39.600 47.400 51.000 37.000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9
Distribution of Company Shareholder, 2017 (% of companies) Number of companies 230 % of companies Foreign owwned capital 50% Portuguese owned capital 50% 10
Turnover by Activity 2017 (% turnover) Systems assembly 6% Textiles & other trims 11% Others 2% % turnover Plastics, Rubber & other composites 18% 10,4 Billion EUROS Metalurgy / Metalwork 33% Electric / Electronic 30% 11
Turnover & Exports (billion euros) 11 10,4 10 9 TURNOVER 9,1 billion euros 8 7 6 5 4 3 7,5 8,8 7,8 6,6 6,2 5,2 6,0 5,1 4,8 4,1 EXPORTS 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 12
Sales Destinations by Region & Country (%, 2017) % turnover 13
Capital Expenditure (fixed assets & intangible assets, million euros) 800 600 million euros 220 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14
INDEX 1. AFIA 2. AUTO COMPONENTS INDUSTRY 3. COMPETITIVE FACTORS 4. PORTUGAL & MOROCCO 15
Portugal Low social / labour conflicts. Good quality of life, security. Stable and moderate climate, without extreme natural phenomenous. Advanced, reliable Infrastructure in terms of Transports, Communications, Energy. Qualified Manpower available, highly educated & full motivated. Competitive labor costs in the context of Western Europe. Flexible production capabilities, flexible environment, high readiness for change. Modern management concepts are standard Continuous improvement, Lean Manufacturing, 6 Sigma, TQM, Easy access to markets of Spain, France & North Africa. Springboard for Latin America. 16
Automotive Industry Companies are built on a solid industrial tradition, the automotive industry in Portugal started around 1960. The auto component industry has a high degree of internationalization, a long exporting tradition and experience to handle multiple customers in various markets. Companies enjoy an image of credibility and practice modern management concepts; almost all companies are certified and quality is a priority. We find a high knowledge of foreign languages, relationship skills with other realities, intercultural sensitivity, adaptability, flexibility, capacity for learning and assimilation. Portugal has specialized education and training centers and good examples of cooperation between companies, universities and R&D centers. Size of the Iberian market in terms of production (3 million vehicles). 17
Portuguese Owned Companies (some examples) 18
Foreign Investment on the Auto Components Industry (examples) 19
Portuguese Foreign Direct Investment (only AFIA Members) 20
INDEX 1. AFIA 2. AUTO COMPONENTS INDUSTRY 3. COMPETITIVE FACTORS 4. PORTUGAL & MOROCCO 21
Portugal & Morocco Automotive Production 345 376 400 288 300 192 232 (x 1.0000 véhicules) 159 40 57 164 109 168 154 162 157 143 176 2010 2011 2012 2013 2014 2015 2016 2017 2018* PORTUGAL MAROC * Estimation d AFIA Source: OICA 22
Portugal & Morocco AUTOMOTIVE INDUSTR7 trade relations (millions d euros) 86 88 81 75 66 68 58 49 55 58 55 52 54 55 51 45 2010 2011 2012 2013 2014 2015 2016 2017 EXPORTS ventes de Portugal au Maroc IMPORTS achats de Portugal au Maroc EXPORTATIONS IMPORTATIONS NC Nomenclature combinée Chapitre 87 voitures automobiles, tracteurs, cycles et autres véhicule terrestres, leures parties et accessoires Composants divers Calculs de l AFIA à partir de les données de l INE Institut National de la Statistique Commerce Internationale 23
Portugal & Morocco AFIA & AMICA AGREEMENT Trade Missions Exchange of Commercial & Technical information Co-operation between companies Rabat, December 2017 24
AFIA Associação de Fabricantes para a Indústria Automóvel Portuguese Manufacturers Association for the Automotive Industry Edifício de Serviços da AEP. Av.ª Dr. António Macedo, 196 PT 4450-617 LEÇA DA PALMEIRA PORTUGAL T +351 226 172 668 info@afia.pt www.afia.pt 25