Automotive Division Tryggve Sthen President Automotive Division Presentation
- Slides: 25
Automotive Division Tryggve Sthen President, Automotive Division
Presentation outline • Automotive Division update – Key financials – Division overview • Cost reductions • Growth in Asia
1 Automotive Division update
Automotive Division overview Cars Trucks Two wheelers Vehicle service Home appliances market & Power tools
A good AD journey for many years… Sales development SEKb Record operating margin 18. 6 6. 0% Excl. One-time costs
The great secession in 2008 -2009 followed by a strong recovery Record operating margin Sales development SEKb 7. 2% 4. 4 Excl. One-time costs
2 Cost reductions
Reducing costs – lower cost & better cash Lower cost & better cash • Cost cutting • Down sizing • Managing cash
Capacity flexibility - Lay-offs and early retirements Q 4 2008 and H 1 2009 • In total about 2, 000 people • All sites affected, mainly: Americas • Glasgow closure • Elgin • Salt Lake City • Tortuguitas • Cajamar Europe • Lutsk • Fontenay • Varese • St Cyr • Leverkusen Asia • Pune
Capacity flexibility 2009: At peak about 9, 000 people in short-time work
Reducing costs - restructuring Lower cost & better cash • Cost cutting • Down sizing • Managing cash Restructurin g • Plant restructuring in Europe & North America • Shift of production
Factory closures/restructuring over the last few years North America • Aiken • Springfield • Franklin • Glasgow • Elgin • Seneca Europe • Fontenay, France • Schweinfurt, Germany • Leverkusen, Germany
Shift in manufacturing footprint Latin America growth • Mexico – Seals – Bearings • Brazil East Europe growth • Ukraine capacity • Bulgaria capacity Manufacturing increase from 30% in 2008 to 45% in 2010 Asia expansion • China new HBU plant • Korea 2 new plants • Indonesia new plant • India new plant
Reducing costs Lower cost & better cash • Cost cutting • Down sizing • Managing cash Restructurin g • Plant restructuring in Europe & North America • Shift of production Internal improvement s • Benchmarking • Six Sigma • Manufacturing Excellence
3 Growth
Growth strategy in Asia • Grow with winning customers Value for customers
Bearings and seals to Fuwa trailer axles • Guangdong Fuwa Engineering Manufacturing Co. Ltd. is the largest trailer axle manufacturer in the world • Several bearing and seal contracts
Bearings to Yuchai engine • Yuchai is the largest diesel engine manufacturer in China • Recently secured important bearing contract Hub bearing unit 1 Fan unit Yuchai engine
Haridwar factory inaugurated 7 April • Haridwar factory to supply ball bearings to Hero Honda and other automotive customers in the region as well as to the aftermarket • Contract with Hero Honda for 5 years production: > 100 million bearings
Growth strategy in Asia Grow with winning customers Value for customers • Product introduction targeting Asia demand Broad product offering
Asia targeting product launches in the last 6 months • 12 new products launched globally • 4 specifically targeting the Asia market SKF Rocker Arm Bearing & SKF Rocker Arm Bearing Unit SKF One Way Clutch Hub Bearing Unit 1 for compact cars
Growth strategy in Asia Grow with winning customers Value for Customers Product introduction targeting Asia demand Broad product offering • Product range expansion • Dealer network expansion Aftermarket penetration
Aftermarket business in China Dealer network 2007 12 Distributor/Dealers 2008 + 8 2009 + 6 2009 = 26 (end of year) Product Range • New product lines added • New kits added to existing product lines
The way ahead Growth Downsizing Restruct- Internal uring improvements Cost reductions Value for customer Broad green offering Aftermarket Emergin g markets
- Ducks unlimited president
- Mahindra cie automotive ltd gear division
- Mentovertical diameter
- Leopold's maneuver
- 369 times 2
- Division of polynomials
- Short division vs long division
- Divide using synthetic division.
- Wheel hub motors for automotive applications
- Utm aeronautical engineering
- Sap hana for automotive
- Dotars raws
- True automotive
- V cycle automotive
- Automotive aftermarket solutions
- Automotive regulations and standards
- Fishbone diagram automotive
- Datatronic automotive
- China automotive material data system
- Write it right bureau of automotive repair
- Automotive terminal market
- Automotive technology principles diagnosis and service
- Chapter 44 automotive wiring and wire repair
- Halderman
- Modern automotive technology answer key
- Automotive plumbing