excerpts from csm | insights
CSM Worldwide invites you to view a high-level, forward-looking snapshot of the most recent global production summary. The following link contains global light vehicle and medium/heavy production summaries by region. These summaries are based on CSM Worldwide's Global Light Vehicle and Medium/Heavy Production Forecast services.
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Philadelphia, Pennsylvania, USA 6th Annual Wharton Restructuring and Turnaround Conference Mike Wall, CSM Speaker
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The automotive environment has evolved into a globally hyper-competitive market. Leading market suppliers, for the most part, have similar raw material and processing costs. This is a clear recipe for product commoditization often giving your customer significant leverage. More and more suppliers are finding that new technology can be the key to improved profitability and reduced exposure to commoditization. In fact new technology is a differentiator!
The turmoil of the global financial crisis has impacted the Chinese economy since 3Q 2008. The economy relies heavily on exports, and this caused many plants to close when demand in developed countries contracted. Consumer confidence also fell due to the gloomy economic situation and the threat of layoffs. Subsequently, China's automotive market stagnated in the last quarter of 2008.
What has been dubbed the "Great Recession" has touched industries and companies large and small. One has to look no further than the automotive sector to see an industry that has been profoundly impacted. In 2009, with the impact of the credit crisis and the significant collapse in vehicle demand and production, we have witnessed two major automakers enter and exit Chapter 11 bankruptcy, over 45 documented automotive supplier bankruptcy filings and an untold number of suppliers that have simply ceased operations and liquidated outside of the bankruptcy process. As we assess the fallout from what has been a tumultuous year for the industry, we also look to what lies ahead for the supply chain.
Due to its export-reliant economy, China cannot stay immune from the global financial crisis. The slowdown of economic growth is impacting the Chinese auto industry, which is now one of the pillar industry sectors there. In these hard times, to boost the auto industry as well as consumer confidence in the world's second-largest auto market, the China State Council passed an auto industry revival plan on 14 January 2009.