Strategic Analysis of the North American Exterior Modules and Systems Markets

SUMMARY

Outsourced Exterior Systems and Modules Gains in Popularity

The need to concentrate more on vehicle-related services and ensure faster development and assembly time is compelling most automakers to transfer the manufacturing and assembling of external modules and systems to Tier 1 suppliers. This strategy would not only reduce infrastructure investment, but would also assure greater quality and responsiveness to market needs. Since 65 to 80 percent of the value of a vehicle is related to the supplier, automakers need to be cautious in selecting a supplier with the right technology portfolio and the necessary expertise to bring in cost savings. It is equally crucial for suppliers to offer strong system level innovations and integration capabilities for highly optimized systems.

This Frost & Sullivan research service examines the North American automotive exterior modules and systems market, segmenting it into front end, door, roof, and rear end modules. It also discusses the various market trends and opportunities while providing in-depth analysis of market share, forecasts, market drivers and restraints, and revenues. Strategic recommendations offered in this study enable companies to align their positioning strategies to benefit from the changing market conditions and obtain maximum return on investment.

Suppliers' Innovative Solutions Allows Automakers to Target Niche Segments

The ability to cater to niche segments has become vital to meet the diverse tastes and preferences of consumers around the world and to make a mark in today's competitive automotive business. With automakers introducing more niche vehicles, supplier's ability to contribute to value addition and vehicle differentiation are gaining importance. "By collaborating with tier 1 suppliers, automakers can focus on the total vehicle, manufacturing multiple vehicles from the same platform, in the same plant," explains the analyst of this research service.

Moreover, there is greater emphasis on creating a strong brand name and increasing customer' loyalty to stimulate repeat purchases. With suppliers offering high-quality ready-to-install components for quicker product launches, automakers can focus more on marketing and branding, product positioning strategies, and warranties.

Collaborative Efforts Opens Up Huge Opportunities for Suppliers

Modular configuration combined with the increased technological complexity of vehicles components necessitates stronger cooperation in design activities between automakers and suppliers. In such partnerships, tier 1 suppliers assume the responsibility for the coordination of sourcing individual components and most importantly tight functional integration of exterior systems and modules.

The suppliers are not just fabricators, but comprehensive engineering centers where capabilities in areas such as project management, organizational project standards, ramp-up management or purchasing are crucial to the overall success of a vehicle platform. "With production synergies becoming increasingly difficult to achieve and margins depressed, tier 1 and tier 2 suppliers are forced to continue searching for additional added value or cost reductions," says the analyst. "In many cases, this has taken the form of producing complete systems, and exterior modules are a prime example."

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Executive Summary
    • 1. Executive Summary
• 2. Total Exterior Modules and Systems Market
  • 1. Market Overview and Definitions
    • 1. Introduction
    • 2. Definition for Exterior Systems and Modules
    • 3. Market Engineering Measurements
  • 2. Market Drivers and Restraints
    • 1. Market Drivers
      • a. Economic Factors -- Investment Reduction/ Redirection, Cost Reduction, Resource Redirection
      • b. Technological Factors -- System Level Innovations, Low-Cost Technology Replacement
      • c. Product Development and Marketing Factors -- Niche Vehicles, Global Modular Platform Strategy
      • d. Manufacturing Logistics -- Reduction in Parts Count, Storage Space, and Assembly Time
      • e. Supply Chain Logistics -- Smaller Supplier Base Simplifies Program/ Project Management
    • 2. Market Restraints
      • a. Economic Factors -- Higher Overhead Costs, Investment, and Risk for Tier 1s; Low Cost-Benefit Realization by Automakers
      • b. Technological Factors -- Substantial Development Expertise Required, Strict Requirements Matching, Automakers Fear Loosing Technological Know-How
      • c. Regulatory and Organizational Factors -- Union Resistance at Automakers, Automakers' Organizational Structures
      • d. Pricing Factors -- Suppliers Want Greater Margins for Integration Work, Automakers Want Transparency in Pricing
      • e. Sourcing Factors -- Low-Cost Regions, Tier 2 Selection Still Controlled by Automakers, Suppliers Want Overall Responsibility
  • 3. Market Measurements
    • 1. Total Market Revenue Forecasts by Segment
    • 2. Penetration Forecasts by Product Segment
    • 3. Market Penetration by Vehicle and Product Segment
    • 4. Market Penetration by Automaker
  • 4. Value Chain Analysis
    • 1. Value Chain Mapping
    • 2. Automakers' Platform Strategy
    • 3. Tier 1 and 2 Evolution
    • 4. Product Design and Development
  • 5. Key Market Trends
    • 1. Supply Chain Management and Logistics
    • 2. Future Supplier Park Evolution
    • 3. Revenue Analysis by Product and Vehicle Segment
  • 6. Frost & Sullivan Awards
    • 1. 2005 Frost & Sullivan Voice of the Customer Award in Door Modules Market
    • 2. 2005 Frost & Sullivan Award for Customer Value Enhancement in Front End Modules
    • 3. 2005 Frost & Sullivan Award for Product Differentiation Innovation in Roof Modules
• 3. Front End Modules and Systems Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Market Engineering Measurements
    • 3. Definition
  • 2. Supply Chain Structure and Key Challenges
    • 1. Supply Chain Structure
    • 2. Key Challenges
  • 3. Market Measurements
    • 1. Unit and Revenue Forecasts
    • 2. Penetration Analysis by Vehicle Segment
    • 3. Penetration Analysis by Automaker
  • 4. Comparison of Key Sourcing Priorities for Vehicle Manufacturers
    • 1. Big Three
    • 2. Others
  • 5. Competitive Structure and Suppliers
    • 1. HBPO North America
    • 2. Meridian Automotive Systems
    • 3. Denso International America Inc.
    • 4. Decoma
    • 5. Faurecia
  • 6. Key Strategic Analysis
    • 1. Value Analysis and Trends by Vehicle Segment
    • 2. Component-Level Value Analysis and Trends
    • 3. Cost-Benefit Analysis
• 4. Door Modules and Systems Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Market Engineering Measurements
    • 3. Definition
  • 2. Supply Chain Structure and Key Challenges
    • 1. Supply Chain Structure
    • 2. Key Challenges
  • 3. Market Measurements
    • 1. Unit Shipment and Revenue Forecasts
    • 2. Penetration Analysis by Vehicle Segment
    • 3. Penetration Analysis by Automaker
  • 4. Comparison of Key Sourcing Priorities for Vehicle Manufacturers
    • 1. BMW Manufacturing Corp.
    • 2. DaimlerChrysler
    • 3. Ford Motor Company
    • 4. General Motors Corporation
    • 5. Honda of America Manufacturing Inc.
    • 6. Nissan North America
    • 7. Toyota Motor Manufacturing North America
    • 8. Volkswagen de Mexico S.A. de C.V.
  • 5. Competitive Structure and Suppliers
    • 1. Market Share Analysis
    • 2. Brose
    • 3. ArvinMeritor Inc.
    • 4. Intier Automotive
    • 5. Delphi Corporation
    • 6. Others
  • 6. Key Strategic Analysis
    • 1. Value Analysis and Trends by Vehicle Segment
    • 2. Component-Level Value Analysis and Trends
    • 3. Cost-Benefit Analysis
• 5. Roof Modules and Systems Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Market Engineering Measurements
    • 3. Definition
  • 2. Supply Chain Structure and Key Challenges
    • 1. Supply Chain Structure
    • 2. Key Challenges
  • 3. Market Measurements
    • 1. Unit Shipment and Revenue Forecasts
    • 2. Penetration Analysis by Vehicle Segment
  • 4. Comparison of Key Sourcing Priorities for Vehicle Manufacturers
    • 1. Big Three
    • 2. Others
  • 5. Competitive Structure and Suppliers
    • 1. Market Share Analysis
    • 2. Webasto Roof Systems Inc.
    • 3. ArvinMeritor Inc.
  • 6. Key Strategic Analysis
    • 1. Value Analysis and Trends by Vehicle Segment
    • 2. Cost-Benefit Analysis
• 6. Rear End Modules and Systems Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Market Engineering Measurements
    • 3. Definition
  • 2. Supply chain structure and Key challenges
    • 1. Supply Chain Structure
    • 2. Key Challenges
  • 3. Market Measurements
    • 1. Forecast for Total Units and Revenues
    • 2. Penetration Analysis by Vehicle Segment
  • 4. Comparison of Key Sourcing Priorities for Vehicle Manufacturers
    • 1. Big Three
    • 2. Others
  • 5. Competitive Structure and Suppliers
    • 1. Meridian Automotive Systems
    • 2. Decoma International
  • 6. Key Strategic Analysis
    • 1. Value Analysis and Trends by Vehicle Segment
    • 2. Component-Level Value Analysis and Trends
• 7. Appendix
  • 1. Glossary
    • 1. Abbreviations
    • 2. Compound Annual Growth Rate
    • 3. Conversion Equations
    • 4. Exchange Rates
• 8. Decision Support Database
  • 1. Decision Support Database
    • 1. Trade Regulations in North America
    • 2. Vehicle Platforms United States
    • 3. Global Joint Ventures and Affiliations
    • 4. Global Vehicle Production
    • 5. Global Light Vehicle Sales

List Of Figures

Chapter 2

• Total Exterior Modules and Systems Market: Market Drivers Ranked in Order of Impact (North America), 2005-2011
• Total Exterior Modules and Systems Market: Market Restraints Ranked in Order of Impact (North America), 2005-2011
• Total Exterior Modules and Systems Market: Revenue Forecasts (North America), 2001-2011
• Total Exterior Modules and Systems Market: Penetration Forecasts by Product Segment (North America), 2001-2011
• Total Exterior Modules and Systems Market: Market Penetration by Vehicle and Product Segments (North America), 2004
• Total Exterior Modules and Systems Market: Market Penetration by Automaker (North America), 2004

Chapter 3

• Front End Modules Market: Impact of Market Challenges (North America), 2005-2011
• Front End Modules Market: Unit Shipment and Revenue Forecasts (North America), 2001-2011
• Front End Modules Market: Vehicle Segment Penetration Forecasts (North America), 2001-2011
• Front End Modules Market: Penetration Forecasts by Automaker (North America), 2004-2011
• Front End Modules Market: Value Forecasts by Vehicle Segment (North America), 2004-2011

Chapter 4

• Door Modules Market: Impact of Market Challenges (North America), 2005-2011
• Door Modules Market: Unit Shipment and Revenue Forecasts (North American), 2001-2011
• Door Modules Market: Penetration Forecasts by Vehicle Segment (North America), 2001-2011
• Door Modules Market: Penetration Forecasts by Automaker (North America), 2001-2011
• Door Modules Market: Revenue Shares of Major Market Participants (North America), 2004
• Door Modules Market: Value Forecasts by Vehicle Segment (North America), 2001-2011

Chapter 5

• Roof Modules Market: Impact of Market Challenges (North America), 2005-2011
• Roof Modules Market: Unit Shipment and Revenue Forecasts (North America), 2001-2011
• Roof Modules Market: Penetration Forecasts by Vehicle Segment (North America), 2001-2011
• Roof Modules Market: Revenue Shares of Major Market Participants (North America), 2004
• Roof Modules Market: Value Forecasts by Vehicle Segment (North America), 2001-2011

Chapter 6

• Rear End Modules Market: Impact of Market Challenges (North America), 2005-2011
• Rear End Modules Market: Unit Shipment and Revenue Forecasts (North America), 2001-2011
• Rear End Modules Market: Penetration Forecasts by Vehicle Segment (North America), 2001-2011
• Rear End Modules Market: Value Forecasts by Vehicle Segment (North America), 2001-2011

Chapter 7

• Total Exterior Modules and Systems Market: Exchange Rate (Canada:U.S.), 2003-2005
• Total Exterior Modules and Systems Market: Exchange Rate (Europe:U.S.), 2003-2005
• Total Exterior Modules and Systems Market: Exchange Rate (Japan:U.S.), 2003-2005
• Total Exterior Modules and Systems Market: Exchange Rate (Mexico:U.S.), 2003-2005
• Total Exterior Modules and Systems Market: Exchange Rate (UK:U.S.), 2003-2005