Global Market Review Of Front-end Modules For - Just-Auto.com
Global Market Review Of Front-end Modules For - Just-Auto.com
Global Market Review Of Front-end Modules For - Just-Auto.com
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<strong>Global</strong> market review of<br />
front-<strong>end</strong> modules for<br />
passenger cars and light<br />
trucks – forecasts to 2011<br />
3rd edition<br />
2005 edition
Page i<br />
<strong>Global</strong> market review of front-<strong>end</strong><br />
modules for passenger cars and<br />
light trucks – forecasts to 2011<br />
3rd edition<br />
by Matthew Beecham<br />
September 2005<br />
Published by<br />
Aroq Limited<br />
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Fax: +44 (0)1527 577 423<br />
Web: www.just-auto.<strong>com</strong><br />
Registered in England no: 4307068<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Page ii<br />
Multi-user licence edition<br />
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Copyright statement<br />
© 2005 All content copyright Aroq Limited. All rights reserved.<br />
This publication, nor any part of it, may be copied, reproduced, stored in a<br />
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The authors of Aroq Limited research reports are drawn from a wide range of<br />
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© 2005 All content copyright Aroq Ltd. All rights reserved.
Page iii<br />
Table of contents<br />
Multi-user licence edition.............................................................................................................ii<br />
Copyright statement.................................................................................................................. ii<br />
Table of contents ........................................................................................................................... iii<br />
List of tables .................................................................................................................................... v<br />
List of figures ................................................................................................................................. vi<br />
just-auto.<strong>com</strong>’s research portfolio ..............................................................................................vii<br />
Incredible ROI for your budget – single and multi-user licences..............................................vii<br />
just-auto.<strong>com</strong> membership ......................................................................................................... viii<br />
Chapter 1 - Introduction ................................................................................................................. 1<br />
<strong>Modules</strong> out in front................................................................................................................... 1<br />
Report coverage........................................................................................................................ 2<br />
Chapter 2 - The market ................................................................................................................... 3<br />
<strong>Market</strong> players........................................................................................................................... 3<br />
Overview........................................................................................................................... 3<br />
Calsonic Kansei................................................................................................................4<br />
Faurecia............................................................................................................................ 4<br />
HBPO ............................................................................................................................... 4<br />
Valeo Plastic Omnium ...................................................................................................... 5<br />
<strong>Market</strong> shares ........................................................................................................................... 6<br />
European market .............................................................................................................. 6<br />
North American market..................................................................................................... 7<br />
South Korean market........................................................................................................ 8<br />
<strong>Market</strong> forecasts........................................................................................................................ 9<br />
<strong>Market</strong> value............................................................................................................................ 12<br />
Chapter 3 - Technical review........................................................................................................ 16<br />
Defining the elements ............................................................................................................. 16<br />
Focus ...................................................................................................................................... 16<br />
Functions…............................................................................................................................. 16<br />
…And benefits......................................................................................................................... 16<br />
Pedestrian protection .............................................................................................................. 20<br />
New materials ......................................................................................................................... 23<br />
New designs............................................................................................................................ 26<br />
Chapter 4 - Manufacturers............................................................................................................ 29<br />
Calsonic Kansei ...................................................................................................................... 29<br />
De<strong>com</strong>a International.............................................................................................................. 30<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Page iv<br />
Denso...................................................................................................................................... 32<br />
Dynamit Nobel Kungststoff......................................................................................................33<br />
Faurecia .................................................................................................................................. 35<br />
HBPO...................................................................................................................................... 38<br />
Peguform................................................................................................................................. 42<br />
Visteon .................................................................................................................................... 43<br />
Online sources of information ..................................................................................................... 45<br />
Free email newsletters............................................................................................................ 45<br />
Other research reports............................................................................................................ 45<br />
<strong>Global</strong> news and feature articles............................................................................................. 45<br />
Search the web ....................................................................................................................... 45<br />
Your feedback ............................................................................................................................... 46<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Page v<br />
List of tables<br />
Table 1: <strong>Front</strong>-<strong>end</strong> module production in Western Europe, North America and South Korea¹,<br />
2000-2011 (units)...................................................................................................... 12<br />
Table 2: <strong>Front</strong>-<strong>end</strong> module market value in Western Europe, North America and South Korea 1 ,<br />
2000-2011 (€m) ........................................................................................................ 15<br />
Table 3: HBPO’s front-<strong>end</strong> module production, 1999-2004 (‘000s units) ...................................... 41<br />
Table 4: HBPO’s number of employees, 1999-2004...................................................................... 41<br />
Table 5: HBPO’s sales, 1999-2004 (€ms)...................................................................................... 41<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Page vi<br />
List of figures<br />
Figure 1: European automotive front-<strong>end</strong> module market shares¹ for passenger cars and light<br />
truck applications, 2004 (% of volume)....................................................................... 7<br />
Figure 2: North America automotive front-<strong>end</strong> module market shares¹ for passenger cars and light<br />
truck applications, 2004 (% of volume)....................................................................... 8<br />
Figure 3: South Korean automotive front-<strong>end</strong> module market shares for passenger cars and light<br />
truck applications, 2004 (% of volume)....................................................................... 8<br />
Figure 4: Audi A2 front-<strong>end</strong> module ............................................................................................... 37<br />
Figure 5: Audi A6 front-<strong>end</strong> module ............................................................................................... 37<br />
Figure 6: Audi S3 front-<strong>end</strong> module (rear view) ............................................................................. 38<br />
Figure 7: Audi S3 front-<strong>end</strong> module (front view) ............................................................................ 38<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Page vii<br />
just-auto.<strong>com</strong>’s research portfolio<br />
just-auto.<strong>com</strong> has been providing timely auto industry intelligence to the<br />
automotive industry globally since 1999. We use only experienced and<br />
respected authors to publish our portfolio of automotive <strong>com</strong>ponent sector<br />
reports. Our approach is to cover niche technology sectors - often at a module<br />
level, such as roof systems or fuel injection systems, to provide you with the<br />
best available analysis at a good-value price point.<br />
All of the reports in our growing portfolio, many in their 2nd or 3rd editions, give<br />
you an essential overview of a sector. Each study profiles the key players,<br />
assesses which technologies are being developed, and gives you other<br />
essential intelligence including market share data, forecasts and exclusive<br />
interviews with relevant senior executives.<br />
A full list of available reports is online at www.just-auto.<strong>com</strong>/store<br />
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Page viii<br />
just-auto.<strong>com</strong> membership<br />
As a 'consumer' of automotive research, just-auto site membership will be<br />
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© 2005 All content copyright Aroq Ltd. All rights reserved.
Chapter 1 - Introduction Page 1<br />
Chapter 1 - Introduction<br />
<strong>Modules</strong> out in front<br />
<strong>Front</strong>-<strong>end</strong> modules, typically en<strong>com</strong>passing the bumper, headlights, radiator<br />
and various others parts, are be<strong>com</strong>ing increasingly sourced by European and<br />
Asian carmakers. In an exclusive interview with just-auto, Toshiki Sugiyama,<br />
general manager of Cooling Systems & Components R&D Department,<br />
Denso, said: “There are carmakers in Japan that aggressively use front-<strong>end</strong><br />
modules, and we think there are possibilities for this number to increase.”<br />
There are signs that the North American market is set to blossom, too.<br />
The benefits to the carmaker from sourcing <strong>com</strong>plete front-<strong>end</strong> modules are<br />
clear: they can help cut the number of operations on the assembly line, reduce<br />
vehicle weight, cut tooling costs and improve working capital. The most<br />
important potential benefit of modular construction is standardisation, allowing<br />
suppliers to offer standard solutions to different manufacturers and hence bring<br />
costs down. <strong>For</strong> the supplier, the added responsibility for design and<br />
development brings new opportunities. Motorists, for their part, gain in terms of<br />
perceived quality and repair costs for accidents occurring at speeds below<br />
XXmph, as in XX% of cases, since disassembly and assembly are quicker.<br />
<strong>For</strong>th<strong>com</strong>ing regulations to protect pedestrians have created new technical<br />
issues amongst front-<strong>end</strong> module suppliers. From 1st October 2005, a net set<br />
of laws will swing into force across the European Union countries aimed at<br />
protecting pedestrians and cyclists involved in a collision with a vehicle. <strong>For</strong><br />
some time, manufacturers have been busy designing novel features such as<br />
pop-up bonnets to reduce the risk of pedestrian head injuries by XX%. To date,<br />
the European Commission has devised four pedestrian-safety tests, two that<br />
measure impact on the lower leg and head of a child and two that measure<br />
upper leg impact and impact on an adult’s head.<br />
The four largest suppliers of front-<strong>end</strong> modules are the newly expanded<br />
alliance between Hella, Behr and Plastic Omnium (HBPO), the French group<br />
Faurecia, another alliance between Valeo and Plastic Omnium (known simply<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 - The market<br />
Page 3<br />
Chapter 2 - The market<br />
<strong>Market</strong> players<br />
Overview<br />
The main suppliers of front-<strong>end</strong> modules are Faurecia, HBPO (Hella Behr<br />
Plastic Omnium), Valeo Plastic Omnium, and Calsonic Kansei. In terms of<br />
global reach, HBPO is ahead of Faurecia due to the fact that they have more<br />
operations.<br />
Other manufacturers include De<strong>com</strong>a, Denso, Mobis, Expert, Visteon and<br />
Peguform (owned by Cerberus). Some of the tied-manufacturers, such as<br />
Denso, are extensions of the OEMs.<br />
Although it has yet to be announced, we expect Mobis to eventually start to<br />
supply front-<strong>end</strong> modules in Europe supplying Kia’s plant in Slovakia. Kia’s first<br />
European assembly plant is currently under construction in Zilina, Slovakia,<br />
and is on schedule to begin production at the <strong>end</strong> of 2006. Hyundai/Kia’s new<br />
plant in Montgomery, Alabama, US will use front-<strong>end</strong> modules assembled by<br />
Mobis. Although Mobis has a strong position with Hyundai/Kia, we are also<br />
unsure of how its front-<strong>end</strong> module capabilities stack-up with other specialists<br />
such as HBPO and Faurecia.<br />
We are also unclear which way Expert and Peguform will develop in this<br />
market. Peguform was recently sold to a financial consortium.<br />
Although Denso is a relative minor player in the front-<strong>end</strong> module market, it<br />
has the potential to strengthen its market position. The <strong>com</strong>pany is a relatively<br />
strong player in Japan (thanks to its ties with Toyota) but it may be difficult for<br />
the <strong>com</strong>pany to adapt their Toyota-developed approach to suit the European<br />
OEMs such as Renault-Nissan, Volkswagen and BMW. “We will continue to<br />
increase our <strong>com</strong>petitiveness by raising the performance of each <strong>com</strong>ponent,”<br />
said Toshiki Sugiyama, general manager of Cooling Systems & Components<br />
R&D Department. “We will also tailor our products to each carmaker’s ideas<br />
and concepts so that the front-<strong>end</strong> modules will be a benefit to them.”<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Chapter 3 - Technical review<br />
Page 16<br />
Chapter 3 - Technical review<br />
Defining the elements<br />
What is a front-<strong>end</strong> module? It dep<strong>end</strong>s who makes it and for whom.<br />
According to Faurecia, a <strong>com</strong>plete front-<strong>end</strong> <strong>com</strong>prises the carrier, shock<br />
absorbers, bumpers, cooling fan system, water and engine oil cooling<br />
radiators, condenser for the air conditioning system, wiring harness, headlights<br />
and various sensors, including the crash sensor which controls the airbag in<br />
the event of an impact. <strong>Front</strong>-<strong>end</strong> modules produced by HBPO integrate a<br />
structural frame, headlamps, bumper system with beam, energy absorber and<br />
fascia, engine cooling system, electronics and other parts.<br />
Focus<br />
According to Toshiki Sugiyama, general manager of Cooling Systems &<br />
Components R&D Department, Denso, the focus of front-<strong>end</strong> modules is to<br />
add more value to modules rather than a collection of <strong>com</strong>ponents.<br />
Functions…<br />
The major functions of the front-<strong>end</strong> <strong>com</strong>ponents are to act as a body frame,<br />
taking in and cooling air, protecting the vehicle and its occupants in the event<br />
of a collision, properly illuminating the front of the vehicle as well as improved<br />
appearance and exterior styling.<br />
…And benefits<br />
The front-<strong>end</strong> module brings benefits to both carmakers and <strong>end</strong> consumers.<br />
Carmakers are able to reduce the number of operations on their assembly<br />
lines, simplify their supply chains, reduce modular weight and improve the<br />
ergonomic aspects of the assembly process. It can also help cut tooling costs<br />
and improve working capital. The most important potential benefit of modular<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Chapter 4 - Manufacturers<br />
Page 29<br />
Chapter 4 - Manufacturers<br />
Calsonic Kansei<br />
<strong>For</strong>med from the merger of Calsonic Corporation and Kansei Corporation in<br />
April 2000, Calsonic Kansei Corporation is an automotive parts and<br />
accessories manufacturer with a strong presence in major automotive markets<br />
worldwide. In addition to front-<strong>end</strong> modules, the <strong>com</strong>pany designs and<br />
manufactures engine cooling systems, cockpit and engine and exhaust<br />
systems. Its engine and exhaust system products include mufflers, exhaust<br />
manifolds, flexible tubes, exhaust tubes and catalytic converters with metal<br />
substrates.<br />
Calsonic Kansei is a major supplier of front-<strong>end</strong> modules both in the US and<br />
Japan, supplying more than 1m units annually.<br />
Calsonic Kansei’s front-<strong>end</strong> module includes the radiator and core support,<br />
condenser, engine fan shroud, windscreen wiper washer tank, headlamp,<br />
bumper stay and reinforcement. The <strong>com</strong>pany’s radiators are made using its<br />
proprietary brazing process and feature a corrosion-resistant design. Calsonic<br />
Kansei also designs and manufactures its own condensers.<br />
Calsonic Kansei was the first Japanese parts supplier to begin deliveries of<br />
cockpit and front-<strong>end</strong> modules. The <strong>com</strong>pany’s first module was produced in<br />
June 2001 for Nissan’s Skyline model. In Japan, the <strong>com</strong>pany also supplies<br />
front-<strong>end</strong> modules for the Nissan Stagea, March, Cube, and Fairlady Z,<br />
Murano (export model), Teana and FX45 (export model).<br />
In Europe, Calsonic Kansei recently won its first contract to supply front-<strong>end</strong><br />
modules. Calsonic Kansei Europe has assumed tier one responsibility for<br />
supplying the <strong>com</strong>plete assembly to the carmaker. In early 2004, the <strong>com</strong>pany<br />
began supplying XX,XXX modules annually from its plant near Barcelona,<br />
Spain. The module includes the bumper armature, bumper stay, air guide,<br />
headlamp, plastic radiator support, unified condenser and radiator and motor<br />
fan.<br />
© 2005 All content copyright Aroq Ltd. All rights reserved.
Your feedback Page 46<br />
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