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
Chapter 1 - Introduction Page 1 Chapter 1 - Introduction Modules out in front Front-end modules, typically encompassing the bumper, headlights, radiator and various others parts, are becoming increasingly sourced by European and Asian carmakers. In an exclusive interview with just-auto, Toshiki Sugiyama, general manager of Cooling Systems & Components R&D Department, Denso, said: “There are carmakers in Japan that aggressively use front-end modules, and we think there are possibilities for this number to increase.” There are signs that the North American market is set to blossom, too. The benefits to the carmaker from sourcing complete front-end modules are clear: they can help cut the number of operations on the assembly line, reduce vehicle weight, cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. For the supplier, the added responsibility for design and development brings new opportunities. Motorists, for their part, gain in terms of perceived quality and repair costs for accidents occurring at speeds below XXmph, as in XX% of cases, since disassembly and assembly are quicker. Forthcoming regulations to protect pedestrians have created new technical issues amongst front-end module suppliers. From 1st October 2005, a net set of laws will swing into force across the European Union countries aimed at protecting pedestrians and cyclists involved in a collision with a vehicle. For some time, manufacturers have been busy designing novel features such as pop-up bonnets to reduce the risk of pedestrian head injuries by XX%. To date, the European Commission has devised four pedestrian-safety tests, two that measure impact on the lower leg and head of a child and two that measure upper leg impact and impact on an adult’s head. The four largest suppliers of front-end modules are the newly expanded alliance between Hella, Behr and Plastic Omnium (HBPO), the French group Faurecia, another alliance between Valeo and Plastic Omnium (known simply © 2005 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 - The market Page 3 Chapter 2 - The market Market players Overview The main suppliers of front-end modules are Faurecia, HBPO (Hella Behr Plastic Omnium), Valeo Plastic Omnium, and Calsonic Kansei. In terms of global reach, HBPO is ahead of Faurecia due to the fact that they have more operations. Other manufacturers include Decoma, Denso, Mobis, Expert, Visteon and Peguform (owned by Cerberus). Some of the tied-manufacturers, such as Denso, are extensions of the OEMs. Although it has yet to be announced, we expect Mobis to eventually start to supply front-end modules in Europe supplying Kia’s plant in Slovakia. Kia’s first European assembly plant is currently under construction in Zilina, Slovakia, and is on schedule to begin production at the end of 2006. Hyundai/Kia’s new plant in Montgomery, Alabama, US will use front-end modules assembled by Mobis. Although Mobis has a strong position with Hyundai/Kia, we are also unsure of how its front-end module capabilities stack-up with other specialists such as HBPO and Faurecia. We are also unclear which way Expert and Peguform will develop in this market. Peguform was recently sold to a financial consortium. Although Denso is a relative minor player in the front-end module market, it has the potential to strengthen its market position. The company is a relatively strong player in Japan (thanks to its ties with Toyota) but it may be difficult for the company to adapt their Toyota-developed approach to suit the European OEMs such as Renault-Nissan, Volkswagen and BMW. “We will continue to increase our competitiveness by raising the performance of each component,” said Toshiki Sugiyama, general manager of Cooling Systems & Components R&D Department. “We will also tailor our products to each carmaker’s ideas and concepts so that the front-end modules will be a benefit to them.” © 2005 All content copyright Aroq Ltd. All rights reserved.
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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.
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