Volkswagen Argentina - Multisectoral Mission for Investments -

Volkswagen Argentina - Multisectoral Mission for Investments Leonardo Ezcurra
Supply Executive Manager Volkswagen Argentina
Hamburg, June 2011
Table of contents
1. The Volkswagen Group
1.1 The strategy 2018
1.2 The global deliveries from 2009 to 2018
2. Volkswagen South America – Sites production and deliveries to customers of VWB & VWA
2.1 Product range and its segmentation
3. Volkswagen Argentina
3.1 Car plant PACHECO and Gearbox plant CORDOBA
3.2 Volkswagen Argentina – Ranking automotive industry
3.3 The development of Volkswagen Argentina
3.4 The nationalization strategy
4. Examples of business opportunities in Argentina
5. Analyse of the automotive supplier industry
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1. The Volkswagen Group
One of the world´s leading automobile manufacturers and the largest carmaker in
Europe
11.4% of Car – marketshare
7.400 Mio produced units
126,9 billion euros of sales revenues
10 brands from 7 European countries:
(Volkswagen, Audi, SEAT, Skoda, Volkswagen Nutzfahrzeuge,
Bentley, Lamborghini, Scania and Porsche)
64 production plants in: 15 European countries and
a further 7 countries in the Americas, Asia and Africa
Nearly 400.000 employees worldwide
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1
Growth market focus
- Increased market penetration
- Emerging markets expansion
- Balanced global footprint
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Potential upside
- Product portfolio extention
2
- North American expansion and market
recovery
- Reduction in investment,
development and unit costs
Leading in customer
satisfaction and quality
- Commercial vehicle strategy and market
recovery
- Financial Services: strengthen
automotive value chain
- Scale and efficiency effects
- Increased production flexibility
the
- Reduced time to market
Top
employer
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Modular toolkit strategy
Volkswagen Group profit
before tax margin ≥ 8%
3
Synergy potential
- Leveraging best practices across the
Group
Volumes
≥ 10 million units p.a.²
- Purchasing, production, and distribution
benefits
Capital discipline
- 16% Rol target in automotive
business
- 20% RoE goal in
Financial Services
- Around 6% automotive capex in
PPE/sales
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Operating profit measures
- Strong cost control
- Process/product optimization
- Regional scale effects
Diversified Economic Exposure:
Attractive Mix of developed and emerging markets
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1.2 Volkswagen Group – Deliveries to customers by market (in Tsd. units)
VW Group - Worldwide
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2. Volkswagen South America – Sites production & deliveries to customers
Brazil
+9.9%
+4.4%
+31.1%
Argentina
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DRAFT
2.1 Volkswagen Brazil & Volkswagen Argentina
Utility
A00
A0
A
Pick up
Anchieta Plant
VWB
538.588/year
Anchieta Plant
27.444/year
Anchieta Plant
114.533/year
Curitiba Plant
173.152/year
Curitiba Plant
17.783/year
Anchieta Plant
VWA
30.894/year
Pacheco Plant
Pacheco Plant
55.000/year
95.000/year
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3.1 Volkswagen Argentina - Car plant PACHECO
Building area: 194.599 m2
Employees: 4.711 total
Capacity: 540 units per day
156.700
63 %
Amarok
88.875
54 %
Amarok
44.492
25.730
2000
2005
46%
Suran
2010
37%
Suran
2015
Car production: estimated increase of 192% from 2000 to 2015
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3.1 Volkswagen Argentina - Gearbox plant CORDOBA
Building area: 77.910 m2
Employees: 1.713 total
Capacity: 3.540 units per day
65 %
MQ200
68 %
MQ200
32%
MQ250
35%
MQ250
Gearbox production: estimated increase of 242% from 2000 to 2015
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3.2 VW Argentina – Ranking automotive industry
Production FC2011 (700.000 units)
Sales to dealers FC2011 (700.000 units)
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3.3 The development of Volkswagen Argentina
Investments developments (EUR Mio.)
Employees development
The development of VW Argentina
Nearly 60 Mio. EUR
invested for
purchasing issues
The total average investment in the last 4 years was
228 Mio. €
A quarter of the total investments was planned for
purchasing
Between 1995 and 2010 the number of employees
increased 148%.
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3.4 Nationalization strategy – material content current situation
Total Material Cost
Total Material Cost
Total Material Cost
Suran
Amarok
MQ200 & MQ250
Brazil
Germany
Argentina
Brazil
Germany
Argentina
Brazil
Germany
Argentina
Despite a high local-regional material content, there are many localization opportunities
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Turnover suppliers
Number of supplier
3.4 Nationalization strategy - suppliers cluster per origin
140
73
67
100 %
(1.203 Mio. EURO)
71 %
(854 Mio. EURO)
29 %
(349 Mio. EURO)
TOTAL
Global Suppliers
Local Suppliers
Ca. 70% of turnover managed by global suppliers
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DRAFT
4. Examples of business opportunities
Gearshift
command
Technology
Fine blanking
Industry overview
Gearboxes production
(quantities in JDP FC2013)
High precision assembly
Cinematic control
Gearbox shifting
tower
Technology
Hi-tech components must
be localized with high added
value
VW main user of these
components/technology
5000
VW
Business opportunity
1000
700
FIA T
PSA
Other OEM´s producing
gearboxes locally:
FIAT and PSA Group
Great possibilities of
Annual volume in 2013:
Fine blanking
VW:
1,4 Mio
Precision machining
Fiat:
0,24 Mio
Laser welding
PSA:
0,17 Mio
High precision assembly
TOTAL PRODUCTION: 1,8 Mio
creating an alliance:
Merger & Acquisition,
Joint Ventures, technological
agreements, licences, etc.)
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DRAFT
4. Examples of business opportunities
Tires
Technology
Industry overview
Tires/year
Black and green tires
Winter tires (only export)
3 OEM´s producing pick ups
for all markets
615.000
VW Business Volume
Seats
components
Technology
Suppliers spectrum: 2
international players + 1 local
company
4.250.000
Normal and all-terrain (AT)
Size range from 13´´ to 19´´
(automobile and pick ups)
Business opportunity
Automotive industry
Industry overview
Possibility of creating a
successful product
diversification strategy
Business opportunity
Foaming
Installation rate of leather
seatings growing for
local/export markets
Textil, leather (eco-leather
and natural covers)
High potential for developing
local raw material
Metallic structure
VW Product
IR Suran: 5%
IR Amarok: 28%
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DRAFT
4. Examples of business opportunities
Steering wheel
Technology
Industry overview
Business opportunity
parts/year
Mg structure
850.000
With and without airbag module
Leather finishing and plastic
123.000
VW Business Volume
Rubber
components
- Sealings:
- Hoses:
Industry overview
Sealings
Hoses
Suppliers spectrum: 1 local
company (low tech) without
current business for all
markets
100% imported for all OEM´s
Automotive industry
Business opportunity
1 international player for
sealings
No international companies
for hoses in ARG
Small companies producing
spare parts
(low Q degree and technology)
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5. Analyse of the automotive supplier industry
Potential Entrants:
- Great potential for cooperations with small
already existing companies
- Adequate industrial base
- High educated workforce
- Well-developed infrastructure
Supplier Power:
- Good business environment with
suppliers within MERCOSUR
- Good development of regional
sources (mining, energy, oil, etc.)
- Large range of raw materials (steel,
plastic, alloyed materials, etc.)
Buyer Power:
Industry Rivalry:
No competitors market gap
- Missing know-how
- Great number of automotive
companies in MERCOSUR
- SAM markets with a high growing
potential
- Lack of technical capacities
Threats of substitutes:
-Low threats of substitues because of the
global design and specific products with
high technical requirements
Just for Companies with high KNOW-HOW
Attractive business environment + good business opportunities
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Thank you very much
for your attention
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