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1/18/06

Autoindustry.com: European suppliers lead in technology

Auto Industry

European suppliers lead in technology

European companies are seen to be the technology leader in most automotive component sectors, according to a new survey of senior auto supplier executives. The consultancy firm Roland Berger and SupplierBusiness.com surveyed almost 100 senior supplier executives worldwide in December 2005 about the state of the industry.

Forty six percent of respondents worked for companies headquartered in Europe, 38% for North American companies and 16% for Asian suppliers. The responses were evenly split between companies with sales of over $500 million and smaller component suppliers. Eighty one percent of respondents believed that European companies led technologically in their sector, 11% believed it was companies in North America, and nine percent said it their sector was led by companies in Asia. Seventy-two percent of respondents said that product innovation was very important or extremely important for suppliers in the long run, the second most important challenge for suppliers after winning new customers. Process innovation, which can have an impact on both costs and quality, was seen as almost as important as product innovation for their long-term competitiveness by suppliers. Forty one percent of suppliers expect the rate of innovation in the automotive industry to increase in 2006, and thirty eight percent of suppliers expect research and development spending to increase in 2006, twice as many as expect it to decline.

Supplier executives are divided about how important hybrids will be by 2010. Thirty seven percent believe that they will still account for 2% or less of the global light vehicle market by the end of the decade, while 20% of respondents believe the hybrid share could reach 6% of the market or more.

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