{ "docId": "019dd923-5ddf-7308-8fca-04acd2f12356", "docSlug": "ddb92874a476e821", "documentTitle": "Global Automotive Supplier Study 2023", "authorId": "RolandBerger", "authorName": "Roland Berger", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.707, "pageNumber": 10, "pageCount": 13, "prevPage": 9, "nextPage": 11, "slideType": "recommendation", "function": "recommend", "density": "overcrowded", "nDataPoints": 0, "notes": "Includes a quote from a partner at Roland Berger.", "elementsJson": [ "headline_text", "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ddf-7308-8fca-04acd2f12356/10", "deckHref": "/decks/019dd923-5ddf-7308-8fca-04acd2f12356", "deckJsonHref": "/decks/019dd923-5ddf-7308-8fca-04acd2f12356.json", "deckAnchorHref": "/decks/019dd923-5ddf-7308-8fca-04acd2f12356#slide-10", "components": [ { "bbox": null, "kind": "callout", "text": "There is never a one-size-fits-all solution, and this is all the more true in the complex and changing constellation we have described.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-e590-72ba-a11c-373e3efc7c29", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.685, "w": 0.333, "x": 0.607, "y": 0.223 }, "kind": "list", "text": "PERFORMANCE: As global economic and political disruptions continue and OEMs exert ever greater pressure for lower costs and greater efficiency, it is crucial for suppliers to launch dedicated performance programs that can stabilize margins, increase cash flow and hedge their business against future uncertainties. Rising interest expenses in upcoming refinancing rounds will further increase the need for such actions. In the short term, the after-effects of the various crises make this a good time to implement unpopular measures (such as resizing or relocating the workforce) in order to slash overheads and boost performance.\n\nPIVOT TO ASIA: Those suppliers that have not already done so must accept that the global focus of the automotive industry is shifting away from Europe and toward the Asian market. As Asian OEMs in general and Chinese OEMs in particular grow in importance and increasingly set market trends, incumbent (Western) suppliers must realign the regional focus of their own activities – especially with regard to product portfolios, production sites and supply chain structures. Doing so will also help them to mitigate risks in case of geopolitical conflicts.\n\nPLAYERS' FUTURE SKILL SETS: The dramatic changes being driven by new technology players will give a definite advantage to players with strong skills in software and the development of batteries and new powertrain technologies, but also in the wider connectivity and digital space. Of central importance will be suppliers' ability to onboard and retain the necessary expertise beyond their traditional strengths.\n\nPARTNERSHIPS: Potential M&A buyers willing to do cash acquisitions are in short supply, financing has become more expensive and the cost of capital is higher. Accordingly, mergers, joint ventures and other forms of collaboration with both OEMs and other suppliers will be essential to properly master the capex-intensive industry transformation.\n\nPORTFOLIO AND POSITIONING: Given the above requirements, it almost goes without saying that scale and a top-three leadership position are critical. Suppliers must clearly define a focused strategic course, which primarily means deciding where to invest and capture growth on the one hand, but also where to consolidate and which activities to exit on the other.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "29f3d388-2bd5-4168-9e7b-95b758262600", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.135, "x": 0.224, "y": 0.736 }, "kind": "paragraph", "text": "Florian Daniel, Partner", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0728b41d-31cd-4b22-957b-9c248444e814", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.265, "w": 0.385, "x": 0.107, "y": 0.171 }, "kind": "paragraph", "text": "There is no stopping the transition from internal combustion to electric powertrains, nor can the industry's eastward drift be halted. Also, the fresh flare-up of conflicts in Israel and the Middle East could yet have another serious set of implications for more than just the automotive industry. However, as this study constantly reiterates, growth opportunities are still very much there, so there will definitely be winners as the current transitions and transformations play out. Suppliers and OEMs alike must face up to these new realities. And, in the case of traditional suppliers especially, they must radically rethink their strategy and find their place in the new-look automotive space of the future.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "84f9e177-ef3d-4e0e-bd1b-af0efbf001d8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.333, "x": 0.607, "y": 0.094 }, "kind": "paragraph", "text": "There is never a one-size-fits-all solution, and this is all the more true in the complex and changing constellation we have described. Nevertheless, five basic principles and approaches must underpin every supplier's strategy to adapt and advance in the current climate:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b19819b7-4f6c-4df3-acb4-864a1d02d14b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.333, "x": 0.158, "y": 0.607 }, "kind": "quote", "text": "Overall, the supplier market remains a growth business, albeit with different components, for different customers, and for other suppliers than today.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e6909ba1-6199-460e-861b-6d7245f47bc9", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Overall, the supplier market remains a growth business, albeit with different components, for different customers, and for other suppliers than today. — Florian Daniel, Partner", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd951-e590-72ba-a11c-39fe0da15c54", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.022, "w": 0.305, "x": 0.107, "y": 0.133 }, "kind": "title", "text": "Selective strategies and radical repositioning", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cca79a2d-c80b-44b4-b5b2-411ad706e940", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.175, "x": 0.107, "y": 0.094 }, "kind": "title", "text": "Recommendations", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fc2fc9f1-bb87-4a97-95d2-076b06a9d7b1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Action Titles", "slug": "action-titles", "agent": "Architect", "layer": "slide", "matchId": "8c8c3078-87c3-473e-98b6-52643d24dcd2", "evidence": "title/action-title: Selective strategies and radical repositioning", "confidence": 0.9 } ], "frameworks": [], "arcBeats": [ { "to": 10, "from": 8, "beatId": "1bc92990-f8c6-489e-b143-204efbd50ac3", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution (Provide relief)", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The deck presents industry trends, market landscape, and recommendations, providing potential solutions for suppliers.", "position": 4, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" }, { "to": 13, "from": 10, "beatId": "67966ff0-9e14-4f6e-9905-a85507c155ea", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Action", "beatSlug": "aida-action", "evidence": "The deck concludes with recommendations and an appendix, providing a call to action for suppliers.", "position": 5, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 10, "from": 8, "name": "Quick Win Big Bet", "slug": "47-quick-win-big-bet", "bestFor": "Transformation planning, 100-day plans, resource allocation", "matchId": "b7807b33-a4b0-40fc-b982-1125124ab61b", "evidence": "The deck presents recommendations for selective strategies and radical repositioning.", "position": 1, "objective": "What are the potential growth strategies for suppliers?", "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap", "confidence": 0.7, "description": "Separate initiatives into immediate wins and longer-term strategic bets" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }