Embed Size (px)
Citation preview
Vehicle Service Market (VSM)
Lars WilsbyDirector, Vehicle Service Market
Capital Markets day 2010
Contents
1. SKF VSM – a solid platform
2. The automotive aftermarket – a stable growth market
3. SKF VSM growth strategy
4. Plant tour and product exhibition
A solid platform
Overview of SKF Vehicle Service Market (VSM)
SKF VSM
SKF Group
6,7 BSEK (2009)12% of SKF Group turnover Double digit annual growth
SKF VSM automotive product portfolio
SKF VSM heavy duty product portfolio
Aftermarket structure
Spare part supplier
NationalDistributors
LocalDistributors
Workshops
Car owner
Car Manufacturer
FranchisedDealers
IndependentAftermarket
(IAM)
OriginalEquipment Supplier
(OES)
Lower marginNo brand visibility
Higher marginBrand visibility
Independent Aftermarket Selection of our customer base
EuropeAll four major distribution groups
China40 distributors – network doubled last two years.
India250 distributors 16000 retailers
South America150 distributors
North AmericaLeading Automotive distributors and high focus on Heavy Duty
Our competitive edge
• Power brand in the aftermarket on ALL continents
• Product quality, performance and range
• Top level distribution network
• Global logistic platform and availability
• Global market leader in wheel bearings andstrong position in engine products
A stable growth market
Spare part lifecycle
Original Equipment Supplier (OES)
IndependentAftermarket
(IAM)
-3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Warranty period
SKFInvolvement
Car launch
Years
Growth drivers of the Independent Aftermarket
Value of the Independent Aftermarket
Repair/miles Value/repairTotal miles + +
Vehicle parc size +
Gas prices –
Distance to work +
Average operating conditions +
Vehicle parc age +
Product longevity -
Components value ++
Kits vs loose parts +
IAM vs OES +
Global Car Parc Growth (million cars)
Source:
Global Insight 2009
0
50
100
150
200
250
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Western Europe +0,7%
Eastern Europe +3,9%
North America +0,8%
South America +5,6%
India +10,4%
China +17,1%
Asia (ex China and India) +1,1%
Africa +2,0%
CAGR
Aftermarket is continuously growing
The Global Automotive Aftermarket sales are estimated to grow with 2,3% (CAGR) between 2008-2012, thus reaching 800 BEUR in 2012.
KPMG Issues Monitor July 2009
Growth strategy
SKF VSM - Growth drivers
Market
Penetration
New
Markets
New
Products
•Range extension•Value added•Adding new products close to core
•Increase distribution selectively – fill “white spots”•Superior service
•Asia – esp China and India•South America•Eastern Europe
Increasing market penetrationExample: West Europe - Selected new business 2010 Marke
t
Penetration
Carat Germany All product lines
AS Parts Portugal All product lines
Dhenin France Timing drive
AD Bassin France Timing drive
GAU DK Denmark Timing drive, Wheel end
OVAM Italy Accessory drive
Medinabi Spain Engine and Driveline
Knoll Germany Engine and Wheel end
Pene Auto France Wheel, Water pump
Hartje Germany All product lines
Strauch Germany Timing drive, Water pump
ECP UK Timing drive, Suspension
MAP France Engine
Hess Germany Driveline
New
MarketsNew Market growth – example India
• Increased distribution coverage in rural areas to 250 distributors and 16000 retailers• Broadened product portfolio –tripled last 5 years• Extensive investments in marketing, e.g. signage, cataloguing, advertising, loyalty programs• Major technical training effort• Doubled sales last 5 years
Vehicle Parts Operations – Global Sourcing
The kit centers• Packaging of kits (typically >1000 types)
• Drive local product development
• Cost efficient sourcing of components
• Secure availability and efficient supply chain
New
Markets
New products - Value added – Wheel end New
Products
Complete kit with HBU3 Replacement frequency: 2%Value: 2000
Product value
HBU3 with integrated ABS sensor
Kit content value
Tapered bearingReplacement frequency: 5%Value: 100
New products – Adding new products New
Products
Driveshaft, CVJ and Boot kitsLaunched: 2007
No of kits: More than 1600
Acquisition of GLO S.r.l in 2008 to acquire production platform, supplier network, R&D, knowledge base.
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
<2004 2005 2006 2007 2008 2009 2010 (YTD)
Product variants
New productsRange Extension New
Products
Target: 96% application coverage
Key Business Message
• SKF VSM – a solid platform– Wide product range – global leader in wheel bearings
– First class distribution network
– Strong logistics and availability
– Superior customer support
• The automotive aftermarket – a stable growth market
• A proven strategy for growth– Market penetration
– New markets
– New products
VP GOT
Launched: 1970
Employees: 48 (50% staff, 50% production)
Product lines: Wheel bearing kits, Commercial vehicle range
Variants: 1400 different variants of kits
Annual production: 3 500 000 kits
ISO 9001, 14001, TS16949
Manufacturing excellence (Lean, KaiZen, etc).
Six Sigma.
