Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
OPPORTUNITIES FOR LOCALISING AUTOMOTIVE COMPONENTS
1. Opportunities for Localising
Automotive Components
Presentation by Roger Pitot, NAACAM
To SA Institute of Foundrymen
January 2011
2. Profile of NAACAM
• Established 1980
• Over 180 members with 260 plants
• Members comprise 70% of dedicated auto
component manufacturing companies in SA
• Independently elected President and two
Deputy Presidents, and 4 Executive
Committee members
• 5 Regions with Chairmen and Deputy
Chairs – quarterly meetings for members in
each region
3. Low Real Local Value
within Components
Imports
38 Imports
=53%
40%
SA
60% Net
24
Local
Content
=47%
4. Current Breakdown of costs and
Local Content
65%: % of total material cost 35%: true local material plus value add as % of total material cost
Exterior
Electrical / Electronic 10%
•Glass
•Harnesses •Paint
•Starter motors •Bumpers
19% 3%
•Alternators •Mirrors
•Wiper systems
•HVAC
5% Interior
23%
•Cockpit
Body •Seats
•Door panels 7%
15% •Carpets
•Bonnets
6% •Bootlids
•Sideframes •Axles
•Doors •Differentials
Chassis and Drive-train
•Drive shafts
33% 14% •Brakes
5. Challenges
in Expanding and Deepening Local Content
Electrical / Electronic Exterior
• Lack of common
• Low volumes / economies of scale specifications across OEMs
• Frequently changing technology • Lack of competitive suppliers
• Distance from design centres • Low volumes / economies of
scale
Interior
• Differing raw materials
specs (resins, carpets)
Body • Differing technologies
• Local steel quality
• Local steel specifications • Differing OEM
• Investment costs
specifications
• Local steel quality
• Local steel specifications
Chassis and Drive-train
6. Joint OEM Initiative
To Increase Local Content:
• Improve local suppliers’ competitiveness
- Develop local suppliers (including Tier 2/3)
- Consolidate local supplier base
- Consolidate OEMs’ business (increase
commonality of local suppliers)
• Align existing OEM technologies and / or specifications
wherever possible
• Attract new technologies and / or suppliers
7. Approach: 5 Joint OEM
Teams
• Chassis and Drivetrain
• Electrical / Electronic
• Exterior
• Interior
• Body
8. Team Approach
• List all commodities per Commodity Group
• Analyse commodities, e.g.
- Local vs. import
- High value commodities not available in SA
- Local commodities with high import content
- Local commodities available locally but suppliers
not well supported or well developed
• Select high priority projects and assign
project leaders & team members
• Selective engagement of suppliers
• Meet regularly, track progress
9. Opportunities - Body
• Pressed part localisation: hand brake lever and side impact
beams identified as further potential
• Steel: 2010 Imported steel list sent to AMSA to determine
whether some grades can be combined in one local grade.
VW success in localising some steels already
• Press shop JV with international partners: OEMs facilitating
various JV’s with multinational partners
• Localisation of BTR material for hot forming is major
opportunity. Local equivalent hardness found below spec
October 2010. Material composition being verified and next
steps to be determined.
10. Opportunities - Interior
• Localisation of vinyl. Headliner, sunvisor
material lamination trials in progress.
• Plastic injection moulded seat profiles. One
OEM has approved local sourcing, others
investigating.
11. Opportunities - Exterior
• Increase local raw materials (Polypropylene) in local injection
moulded plastic parts. OEMs studying potential for
commonisation of PP specs and in discussions with potential
supplier.
• Automotive paints products: looking to increase local raw
materials in various locally produced paints products.
• Weather strips localisation: phase 1 would be limited to
importation of extrusions with local cutting to size and then
assembly; phase 2 would include local moulding of extrusions.
Several OEMs in RFQ process with potential supplier.
12. Opportunities - Chassis
• Driveshafts: looking to re-establish manufacturing of
driveshafts in SA
• Brake calipers: investigating potential to deepen
localisation by localising castings, machining and
plating.
• Cold Coil Spring Steel Localisation not feasible – local
market too small to justify investment
• Wheel Rim (Band) Commonisation – complexity due
to different materials and thickness
13. Opportunities – Electrical/Electronic
• Instrument clusters: localisation of certain sub-components
plus local assembly.
• Review feasibility to localize hooters & horns – local supplier
identified
• Motors and Alternators: discussions with suitable local Tier 2
& 3 aluminium die castings suppliers.
• Batteries: AGM (absorbed glass mat) battery manufacturing
facility at local supplier being commissioned.
• Vehicle harnesses: investigating opportunity to develop Tier 2
and 3 suppliers to localise Battery & Ring type terminals /
Harness clips / Harness tape / Corrugated sleeving
14. Challenges & Opportunities
• Maintaining local content on new models with higher levels of
new technology
• Global excess capacity of many suppliers
• Supplier development capabilities of local organisations?
• OEM Team member participation
• Fast track introduction of certain new suppliers through
acquisition of existing suppliers