2017汽车行业趋势（英文版）_13页_738kb

2017 Automotive Industry Trends Summary

Core Content

The 2017 Automotive Industry Trends report by PwC highlights the challenges and opportunities facing the global auto industry. While sales and profits are strong, the industry is struggling with low returns on capital, which has led to a re-evaluation of traditional business models and strategies for long-term sustainability.

Main Viewpoints

1. The Industry is in Trouble Despite Strong Sales and Earnings

• Total Shareholder Return (TSR): Auto makers have underperformed compared to the S&P 500 and Dow Jones, with an average TSR of 5.5% over the past five years.
• Return on Invested Capital (ROIC): The top 10 OEMs achieved only 4% ROIC in 2016, which is about half of their cost of capital.
• Suppliers' Performance: Leading 100 suppliers barely beat their cost of capital, indicating a need for strategic realignment.

2. Rising Costs and Innovation Pressures

• Cost of Innovation: New technologies like connected cars, autonomous driving, and advanced electronics are increasing the cost of vehicle production significantly.
• Interior Technology: Innovations such as 3D laminated glass, haptic sensors, and augmented reality displays are transforming the car interior, making it a key area for investment.
• Software and Talent: The demand for software engineers and innovative tech solutions is driving up costs, with many preferring the dynamic environment of Silicon Valley startups over traditional automotive firms.

3. Strategic Responses to Cost and Innovation Challenges

• Consolidation: Mergers and acquisitions are being used to reduce costs and streamline operations, as seen in the increased M&A activity in 2016.
• Platform and Manufacturing Sharing: Collaborative efforts in platform and powertrain development can reduce duplication and increase efficiency, similar to the aircraft industry's approach.
• Joint Manufacturing: Examples like Toyota and Groupe PSA sharing production facilities show how OEMs can reduce costs by pooling resources.

4. Offloading Development to Tech Partners

• Tech Partnerships: OEMs are increasingly partnering with tech firms to develop digital features, such as infotainment and autonomous systems.
• Strategic Alliances: Initiatives like BMW i Ventures and Toyota Connected demonstrate the potential for collaboration with Silicon Valley companies.

5. Distribution and Sales Model Reforms

• Distribution Costs: Up to 15% of a car's cost is attributed to distribution, which is a target for optimization.
• Online Sales: The rise of web-based sales channels could reduce costs and improve inventory control, though U.S. OEMs are restricted from bypassing dealerships.
• Dealer Model Improvements: OEMs should explore more efficient dealer networks and use technology to better manage inventory and customer preferences.

Key Information

• Exhibit 1: Automotive operating margins are at a 10-year high, but this does not reflect strong returns on capital.
• Exhibit 2: Many auto companies haven't earned back their cost of capital, indicating poor profitability.
• Exhibit 3: Total OEM investments have been increasing, with a focus on capital spending, R&D, and M&A.

Conclusion

To navigate the evolving landscape, the automotive industry must focus on improving returns on capital through strategic collaboration, innovation, and operational efficiency. OEMs and suppliers alike need to adapt to new technologies and market demands, rethinking traditional roles and relationships. The report emphasizes that the future of the industry will be shaped by those companies that can creatively manage their capital and embrace the changes in the automotive ecosystem.