Survey amongst vehicle manufacturers reveals good business chances for American, German, Asian and Eastern European suppliers. Top engineering capabilities at competitive costs will win new business

The European Automotive Supplier Industry is at a crossroad. Whilst the top-range vehicle manufacturers see high technology suppliers in the US, Japan, Germany, France and Italy winning more business, the mid-range vehicle manufacturers are planning to drop their western European supplier base in favour of Eastern European and Asian sources. This leaves a large number of European suppliers facing a tough choice: either to try beating their Eastern European and Asian competitors on costs or to escape through the innovation and technology route.

A new survey conducted by the management consultancy Automotive Advisors & Associates amongst the leading OEMs and First-Tier suppliers of Europe revealed that suppliers, which are not at the leading edge of technology, are in danger of losing business to their Easter European and Asian competitors. Spanish and UK suppliers may be hit hardest. The study also showed that much of this development appears to have been self-induced. According to the OEMs, suppliers need to focus on cost reduction, innovation, engineering capability, systems and modules in order to win back more of the lost business. The picture, however, is not uniform. Each OEM has its distinct priorities.

For full details of the survey, please visit Automotive Advisors & Associates web site

http://www.automotive-advisors.com/Briefings/SMMT-Survey/smmt-survey.html

Contact:

Automotive Advisors & Associates
Hanns Gunther Bollig
Tel: +49 2103 363980
Fax: +49 2103 363982
E-mail: hanns.g.bollig @automotive-advisors.com
http://www.automotive-advisors.com