Automotive Component Manufacturers Association

Restructuring for Growth

A Proposal

March, 2001

Contents

      

The Indian auto component industry Global trends and implications The challenge Project objective, scope and deliverables Project approach, team Professional fees A.T. Kearney qualifications Selected CVs

A.T. Kearney 23/3603/2

The Indian component industry

A.T. Kearney 23/3603/3

The auto component industry in India has grown at about 22% over the past decade, but represents just 0.64% of global sales and 0.11% of total global trade in components
India: Turnover of component industry

~Rs. 2,200,000 cr


Rs. 14,000 cr

The global trade in auto components represent 68% of total turnover, which suggests that auto value chains are truly global While the total Indian industry turnover represent 0.6% of global turnover, exports represent a miniscule 0.11% of global trade in components

22% CAGR


Rs. 2,400 cr


1990-91

1999-00

Global sales
Global trade = Rs. 1,500,000 cr

This implies that the Indian auto component industry is largely domestic focused and has not exploited the global trade opportunities

Indian exports = Rs. 1,600 cr

A.T. Kearney 23/3603/4

The development path followed by the Indian automotive industry has led to the fragmentation of the component industry structure and sub-scale operations compared to global firms

90 80 70 60 50 40 30 20 10 0 >Rs. 250 cr Rs. 100-250 cr Rs.50-100 cr. % of firms

Source: ACMA, One Source, A.T. Kearney analysis

Rs. lakhs

200 180 160 140 120 100 80 60 40 20 0

Top 10 firms

<Rs. 50 cr

India

Global Annual sales/employee

A.T. Kearney 23/3603/5

The Indian industry has cost advantages (and no pronounced disadvantages vis--vis other emerging countries) which can be leveraged to build globally competitive industry

Japan
Profit ~ 5%

India
Supplier Skills 20 %-30%1
Quoting and competitiveness Professionalism Price Service/logistics Inventory mangmt. Shipping Order management Sales/administration Communication Certification procedures Delivery process Engineering design Standards Specifications Quality Processes Performance Testing, approval Other Dies, patterns Packaging Transport Production technology High Low
A.T. Kearney 23/3603/6

CR

Thai Malay Indon Hung

Rus

India

Overheads &others ~ 28% Dep. ~ 4%

Profit 10%-12% Overheads &others 15%-18% Dep. 5%-8%

Labour ~ 32%

Labour 8%10%

Globally competitive Indian component industry?

Material ~ 30%

Material 55%60%

1 - Despite 50-60% lower productivity Source : JICA, Mining and Industrial Development Studies Department of Japan. Indian industry interviews. A.T. Kearney analysis of Indian component companies cost chain

Source: A.T. Kearney study of component industry in emerging markets

While the component industry has been better at share holder value preservation than OEMs, it compares poorly to many other industries and thus domestic players will find it difficult to attract investment for growth
80.0
PE (average for year 2000)
So ft ware

60.0
Fo o d Beverag es and To b acco

40.0
Cement

Electrical M achinery Pharma Co nsumer Electro nics Plas tics

20.0
Aut o Aut o ancillary Banking

Rub b er

0.0 -40000 0 40000 80000 120000

Value creation (Rs. crores)

Price reduction programmes of Indian OEMs will put further pressure on the suppliers bottom-line
Source: Prowess financial database of CMIE. Intrinsic Value creation: (Free cash flow/1+discount rate)1+(free cash flown/1+discount rate)n + market capn/(1+discount rate)n
A.T. Kearney 23/3603/7

Global trends

A.T. Kearney 23/3603/8

Global overview

Key trends in the automotive industry are driving changes in OEM purchasing strategies


Globalization OEMs continually look to new regions for both low-cost production and sales growth Consolidation among vehicle manufacturers Top five auto makers account for over half of total global production More centralized purchasing and global supply requirements Rationalization of supply sources Focus on suppliers working in partnership with OEMs in the design and development of components Increasing focus on modular construction and subcontracting of systems management Reduction in the number of vehicle platforms Further cost reduction by building more vehicles based on a single platform that is interchangeable between models (increase components commonality) Impact of the Internet Some OEMs moving their entire purchasing programs on-line OEMs forming joint-venture to create virtual marketplace for all commodity purchases

A.T. Kearney 23/3603/9

Global overview

As a result, the supplier base is also being restructured by strategic changes driving the OEMs
Impact on component industry


Changing roles and responsibilities for suppliers Industry structure is consolidating Suppliers must face up to profound strategic issues

Impact on component suppliers



Suppliers must increase knowledge and expertise base rapidly Increased responsibility with potential offers of larger and longer supply agreements, but also greater financial risk OEM-owned suppliers must reduce reliance on sales to parent company Increased focus on the aftermarket
A.T. Kearney 23/3603/10

Auto component firms are aggressively increasing their global footprint and system supply capability through mergers and acquisitions to meet these strategic thrusts

Magna
Global

Johnson Controls

Becker (US) Steyr-Daimler-Puch (Austria) Roltra Morse Ymos (Germany) (Italy) Tricom (UK) Douglas & Lomason (US) MultiGeorg Naher (Germany) regional Caradon Rolinex (UK) Pebra (Germany) Marley (UK) Eybl Durmont (Austria) Zipperle (Germany) KSA (Germany) Aggressive investment in Emerging Markets (esp. South America)

Roth Frres (France) Prince (US)

Regional First tier/ system supplier Full service module/system development First tier/ system supplier Full service module/system development
A.T. Kearney 23/3603/11

Consequently, automotive component industry in emerging markets are potential targets for takeovers
Brazil - % Sales of Local vs Global suppliers India - No. of foreign players 50 45 40 35 30 25 20 15 10 5 0 47

80 70 60 50 40 30 20 10 0

70

75

30

25

14 9 0 1995 1999

1994 Local suppliers

1999 Global suppliers

100% subsidiary Foreign JVs

Brazil auto component industry restructured through Mergers, acquisitions and majority owned JVs with Brazilian suppliers As the industry consolidated, the number of suppliers dropped from 1400 in 1994 to about 700 in 1999

Would Indian component industry go through the same transformation as Brazil?

Source: A.T. Kearney database, press clipings

A.T. Kearney 23/3603/12

Given these supply chain trends, analysis of successful global suppliers suggest that they have adopted different strategic thrusts for growth
1
25%

1996 to 1998 Supplier Performance

Average = 15.4%
Autoliv Visteon Arvin Valeo Meritor Magna

RONA Average 1996 to 1998

Geographic expansion and/or scope expansion (more products and systems) e.g. Tennecco
2

20%

Lear

JCI Eaton Calsonic Standard GKN Simpson Caterpillar Products 15% Amer TRW ican Eaton MascoTech Textron Lucas Dana Axle Average = Borg Warner Varity UTA Tenneco 12.0% Tower Showa Donnelly Hayes Sommer Denso 10% Bosch Allibert Collins & Aikman Delphi DDC Federal Rieter Aisin Mogul NSK Size of Circle Represents Magneti 1998 Automotive Revenue 5% NHK Marelli North America Siemens Cummins TS Tech Europe Yazaki Tokico Asia
0% -10% 0% 10% 20% 30% 40% 50% 60% 100%

Increasing ownership of value chain (design, engineering, assembly, testing, etc.), e.g.Magna
3

Innovation breakthrough in technology/product or processes, e.g. Bosch

Execution play leadership in process cost, e.g. Lear

Revenue Growth 1996 to 1998 CAGR

RONA - Return on Net Assets
A.T. Kearney 23/3603/13

Source: A.T. Kearney study of global suppliers, 1999

The challenge

A.T. Kearney 23/3603/14

The challenge facing the Indian auto component industry

Global opportunity and threat Indian advantage and threat

Implications for on Indian industry Opportunity for $ sales and Re costs Growing global trade Indian cost competitiveness, no major disqualifications P/E of Indian component exporters are higher Lack of scale and scope leaves the Indian firms open to potential threat from the M&A route taken by global players to enter emerging markets Relatively poor shareholder value creation has led to weakening of investor support Hightens take-over threat from global players Investment support for own growth will be difficult to get

How should the Indian component industry re-structure itself to exploit global opportunity, minimise take-ver threats and garner investor support?
A.T. Kearney 23/3603/15

Indian component suppliers have to identify the growth levers specific to their business and develop/implement the appropriate restructuring strategy supported by institutional processes to overcome structural roadblocks
Growth drivers
1 Geographic expansion and/or scope expansion (more products and systems)

Benchmarks, Restructuring options

1

Institutional support

Component category : Drive train Global

Financial performance Scale Scope Typical growth strategy

Export marketing

2 Increasing ownership of value chain (design, engineering, assembly, testing, etc.) 3 Innovation - breakthrough in technology/product or processes 3 Execution play - leadership in process cost

Indian

2 Technology development

3 ACMA role

Restructuring options

A.T. Kearney 23/3603/16

Project objectives, scope and deliverables

A.T. Kearney 23/3603/17

Project objective, scope and deliverables

Objective


Deliverables


Outline the strategic options for the restructuring of the Indian automotive component industry to exploit global opportunities, minimise take-over threat and garner investor support

Scope


The project would have two deliverables A report with the recommendations Presentations to ACMA members on the recommendations Regional meetings AGM (scheduled for September 2001)

The project scope would focus mainly on: Global trends - success factors in the auto component industry and emerging structures and implications for India Indian industry structure (size, tiering, etc.) and performance vs global standards Strategic options for different component groups Potential export areas and current roadblocks Institutional roles required to support individual strategic options for restructuring (export marketing, R&D, ACMA)

A.T. Kearney 23/3603/18

Project approach, time-line, resources

A.T. Kearney 23/3603/19

Project approach
12 weeks Conduct secondary research on the industry and map individual firm - its scale, scope and performance Conduct primary research through questionnaire (with ACMA support) secondary Conduct interviews with selected OEMs, suppliers, and industry associations

Key Deliverables
Domestic demand1 Restructuring options/strategies by component groups Structural and Performance Benchmarking and strategic growth options development for identified component groups

Segment automotive parts and components into logical and manageable categories for analysis

Develop high level industry map of scale and scope by parts categories

Recommendations on export opportunities and overcoming current bottlenecks

Conduct secondary research with global perspective (case studies in other markets Brazil, Spain, Thailand)

Recommendations on institutional roles required (export marketing, R&D, ACMA) restructuring

1. We will use our database (based on projects with automotive clients in India) to estimate future demand, rather than project the demand afresh
A.T. Kearney 23/3603/20

We will segment automotive parts/components into logical and manageable categories for analysis
Example

Automotive parts and components

Engines

Drivetrain

Suspension

Steering

Safety

Body Work

Interior

Electrical & Electronics Climate control Lighting & lamps Relays & switches Sensors & electronic control Wire harness

Cylinder head & liners Pistons Exhaust systems Camshafts Crankshafts Pumps Belts

Transmission Transfer Differential gears Driveshaft Clutch assembly

Axles Shocks & struts Springs

Steering assembly Steering column Steering linkages

Brakes ABS Drums & Discs Lining, pads & shoes Restraint systems

Chassis, frame & panels Bumpers Glass Exterior trim

Seats Airbags Carpet & floor mats Instrument panels Interior trim

A.T. Kearney 23/3603/21

Export opportunities and current roadblocks would be analysed through a survey of current and potential customers
Survey Questionnaire
Company Address : :

Respondents1

Current imports from India

Component category Driven train products Suspension products Engine parts Imports Yes/no Value of imports

Global procurement depts. in OEMs

Global procurement depts. in Tier 1 suppliers Global OEMs operating in India

Future imports from India

Roadblocks in importing from India

Yes/no Quality Delivery Commercial skills Testing Lack of marketing etc.

1. Leverage A.T. Kearneys global auto practice relationships with global OEMs and suppliers

A.T. Kearney 23/3603/22

Project time-line

Key Steps 1. Generate Segmentation Insights 2. Conduct Primary/Secondary Research and Interviews 3. Develop Domestic Demand Scenarios 4. Conduct Structural and Performance Benchmarking 5. Evaluate Restructuring and Export Options 6. Develop Insights on Institutional Roles Required

Weeks 2 4 6 8 10 12

A.T. Kearney 23/3603/23

Project team

Steering Committee
ACMA Vishnu Mathur ATK Z. Momin A. Bhattacharya

Project Management
ACMA The project would be carried out under the direct supervision of Zafar Momin (Vice President, and head of Automotive practice in Asia and Arindam Bhattacharya, (Head of automotive practice in India). The project team would be supported by Dr. Gerald Weber from our Stuttgart office and Steve Young from London office. Project Manager ATK Project Manager

ATK Auto Experts

Dr. Gerald Weber Steve Young

Core Team
ACMA 2 member ATK 2 consultants

The project would be supported by the large core auto team of A.T. Kearney and the global database and information specialists in different offices as appropriate

A.T. Kearney 23/3603/24

Professional fees

 

Our professional fees for carrying out the project would be Rs. 90 lakhs In addition, ACMA will have to bear all out of pocket expenses which typically is about 15% of the professional fees. We would also charge all applicable government of India taxes (currently at 5%).

A.T. Kearney 23/3603/25

A.T. Kearney qualifications

A.T. Kearney 23/3603/26

A.T. Kearney is one of the worlds leading high value added management consultancies

 

70 offices in 35 countries 70 years experience Since 1926 in the USA Since 1964 in Europe Since 1966 in Italy 4,800 employees US $1,9 M revenues in 2000 Management consulting subsidiary of EDS, since September 1995 Atlanta Baltimore Boston Buenos Aires Caracas Chicago Cleveland Dallas Denver Detroit Houston Los Angeles Mexico City Miami Minneapolis New York Ottawa Philadelphia Phoenix Pittsburgh Richland San Diego San Francisco So Paolo Southfield Toronto Washington D.C. Amsterdam Barcelona Beijing Berlin Brussels Copenhagen Dsseldorf Frankfurt Helsinki Hong Kong Istanbul Johannesburg Kuala Lumpur Lisbon London Madrid Melbourne Milan Moscow Munich New Delhi Oslo Paris Prague Rome Seoul Singapore Stockholm Stuttgart Sydney Tokyo Warsaw Wellington Zug

  

A.T. Kearney 23/3603/27

Overview of A.T. Kearney

Our global network of functional practices and industry groups enables us to develop and deploy expertise and know-how

Industry groups
Aerospace Auto& Defense motive Chemical Consumer Health- Financial Telecom TransOil & Gas & Retail care institutions portation Public Sector Utilities

Functional practices

Strategy/ PMI Manufacturing/ Supply Chain Finance & Economics SITP Strategic Sourcing

Change Management TTE / BPR

A.T. Kearney 23/3603/28

Overview of A.T. Kearney

Our fields of capabilities

Value creation strategy Growth / MergerAcquisition strategy

Marketing Strategy

Financial Strategy

Distribution Strategy

Industrial Strategy E-Services

Supply Chain Strategy

Restructuring

Post Merger Integration

Implementation of strategies defined with the client in order to achieve tangible results
A.T. Kearney 23/3603/29

The automotive practice

A.T. Kearney is the global leader in automotive industry management consulting

A.T. Kearney has become the largest management consultancy in the automotive industry, because we help clients get results Over 400 assignments in the last 3 years Identified over $ 8 billion in tangible profit impact through revenue enhancement, cost reduction and balance sheet improvements Helped leaders to grow their business globally Proprietary, proven databases help us understand our clients' business faster and in greater detail Manufacturing database - over 400 plants Database of best practices in procurement and database of 20,000 suppliers world-wide Customized approach base on deep understanding of global automotive industry issues and proven methodologies help us deliver superior value An approach of the automotive sector combining strategy, operation improvement, strategic information technology and change management Distribution economics and effectiveness New brand product development and design Brand management Operations and logistics efficiency improvement

  

A.T. Kearney 23/3603/30

The automotive practice

A.T. Kearney is the global leader in automotive industry management consulting (cont'd)


With over 400 professionals who specialize in automotive consulting, A.T. Kearney has the largest automotive management consulting in the world West/East Europe: 40% North/South America: 40% Asia: 20% Numerous professionals with consulting and automotive background Managed as a fully integrated global practice to provide the best mix of people for a given assignment Teams are routinely global Offices often exchange consultants Serves the world's leading global manufacturers and suppliers 8 of the top 10 vehicle manufacturers 5 of the top 10 component manufacturers 4 of the top 10 motorcycle manufacturers 3 of the top 5 construction and farm equipment manufacturers 2 of the top 5 vehicle financing companies

UK Spain

Canada

France Germany Italy Sweden

Czech Republic Poland Russia Turkey

USA China

Korea Japan

Mexico Brazil Argentina

India Malaysia

Singapore

South Africa

Australia

A.T. Kearney 23/3603/31

The automotive practice

A.T. Kearney is actively contributing to the research on the current Automotive Industrys issues
Research & Development Consulting for institutional organizations Publishing Conferences Web pages
(www.atkearney.com/automotive)

University of Michigan

Active cooperation with major Universities

Study on the 3 liter vehicles for the European Community Strong relationships with organizations in the Automotive industry

Forum of the Automotive Practice "White papers" on the current trends in the Automotive industry Articles

Sponsoring and participation to - Automotive News Conference - Financial Times Conference - Handelsblatt Conference - Confrence Automobile "Les Echos"

Web pages dedicated to the Global Automotive Practice

- Study on the future Marketing and Distribution trends in the Automotive Industry

A.T. Kearney 23/3603/32

Selected A.T. Kearney Automotive clients

Selected A.T. Kearney clients in the automotive industry

Cars and light trucks Audi BMW Chrysler / Daimler-Chrysler Daewoo Fiat Auto Ford Motor General Motors Honda Hyundai Maruti Mazda Mitsubishi Nissan Opel PSA Porsche Proton Renault Rover Saab Suzuki Seat Toyota Volkswagen Volvo Heavy trucks and industrial vehicles Allis Chalmers Ashok Leyland Bedford Trucks Clark Equipment Claas Caterpillar DAF Trucks Deere & Company Fiat Allis Freightliner Fruehauf Harnischfeger Hino Motors Isuzu Iveco / Pegaso Jungheinrich J.I. Case Kssbohrer KHD Leyland DAF MAN Massey-Ferguson Navistar New Holland Oshkosh Motor Truck RVI / Mack Truck Scania Steyr-Daimler-Puch White Motors Part Manufacturers Allied Signal Allison Transmission AMP Asahi Autosense Bendix Benkelu Bethlehem Steel Boge Borg Warner Bosch Bridgestone/ Firestone Champion Spark Plugs Continental Cummins Delco Delphi DRU DSM Eaton Eicher Goodearth Excel Fagor FIAMM Fichtel & Sachs Freudenberg Fuji Tekko General Electric Giraldini GKN Goodyear Happich Hella Herberts Ishikawa ITT Automotive Kelsey Hayes Knorr Bremse Krupp-Hoesch Lucas Magneti Marelli Mann + Hummel Microlite Midas Monroe Perkins Pirelli Piregrine Renk Rockwell Schade Siemens AT SKF SPX Tenneco Teves Thyssen TRW Tushin Valeo Varta VDOHaussemann Vegla Visteon ZF

A.T. Kearney 23/3603/33

Selected A.T. Kearney Automotive clients

Our client list includes the leading vehicle manufacturers and suppliers, most of whom we serve globally
Europe Opel Fiat Porsche Ford Mercedes-Benz PSA Renault North America Allison Transmission Caterpillar Cummins Engine Delphi Detroit Diesel Ford General Motors Honda ITT Automotive John Deere Saab

Saab Vauxhall Volvo Asia-Pacific PT Astra Caterpillar Daewoo General Motors Honda Ingersoll Rand John Deere Komatsu Mitsubishi Nissan Diesel Proton Saturn Subaru Toyota TRW UMW Volvo

Latin and South America Allison Transmission BMW General Motors Mercedes-Benz Renault

A.T. Kearney 23/3603/34

A.T. Kearney service offering for car and truck manufacturers

Global Automotive Practice consulting areas of focus

Strategy

Market, customer and distribution Market/product assessment Market entry strategy Distribution strategy and effectiveness Distribution network restructuring Distribution and dealership economics Aftermarket strategy Customer segmentation satisfaction and retention Database marketing Product development and design Competitor profiling

Organizational effectiveness Organizational design Business process reengineering Revenue enhancement Merger integration Top management structure/role Cost reduction/ reconfiguration Sales force management Process management

Information technology Global IT strategy, architecture and implementation Data warehousing Electronic links with suppliers Management information systems Productivity improvement Outsourcing

Manufacturing, supply chain and sourcing Manufacturing and assembly benchmarking, reengineering and cost reduction Supply chain and logistics cost reduction, effects and re-engineering Global strategic sourcing

Strategy setting Portfolio analysis Shareholder value creation Globalization and regionalization strategies Business unit strategy Strategic alliances Transfer pricing strategy

A.T. Kearney 23/3603/35

A.T. Kearney service offering for car and truck manufacturers

A.T. Kearneys services for car and truck manufacturers are covering the whole value chain
Strategy
Value creation Internal/External growth strategy Company evaluation in a context of merger / acquisitions New market entry strategy Optimization of product portfolio Services strategy (technical, financial, ..) Restructuring Brand management Profitability improvement Make or Buy policy Definition of partnership/joint ventures

R&D
R&D portfolio management Simultaneous engineering Development process reengineering Joint supplier development Platform program management & definition Complexity reduction Modular development Technical data management Standardization policy Key competencies identification

Purchasing
Global purchasing Strategy per commodities Suppliers differentiated management Supplier performance assessment Process Reengineering Best Practice development

Manufacturing
Benchmarking Industrial layout definition Plant productivity improvement Lean manufacturing Automatization

Logistics / Distribution
Logistics strategy Stock level reduction Transportation costs reduction Delivery time improvement

Marketing, Sales and Networks

Relational Marketing Marketing of second-hand vehicles Remarketing of buy back vehicles Marketing of spare parts Brand diagnosis Development / reorganization / recapitalization of dealers network Sales efficiency improvement Network profitability improvement

Client Services
Development of customer loyalty Development of new services Review of operational standards

Support functions: Human Resources, IT, Administration, Infrastructures

Change management Organization and management of IT SG&A reduction Organization of support departments Definition of employees assessment and incentives policy

A.T. Kearney 23/3603/36

A.T. Kearney India has completed over 30 engagements in India in the last 3 years, and has built extensive experience in the automotive industry Sample
A sample of client engagements in the past three years A.T. Kearney Client Leading passenger car company Leading commercial vehicle manufacturer Leading two-wheeler manufacturer Society of Indian Automotive Manufacturers Multinational FMCG company Leading component supplier Indian family owned conglomerate Indian industrial enterprise Indian telecom and IT company Indian industrial enterprise Indian oil and gas public sector enterprise Korean consumer electronics company US automobile manufacturer US apparel manufacturer US motor cycle and apparel manufacturer Indian petrochemicals company Indian private bank Indian family owned conglomerate Project completed in India New business strategy, Customer service improvement Strategic sourcing, Supply chain, manufacturing strategy Strategic sourcing, procurement transformation Recommendations for development of auto industry Distribution network optimization strategy Business restructuring strategy for growth B2C portal launch strategy B2B chemicals exchange launch strategy Software sector growth strategy IT-enabled outsourcing business strategy Corporate vision and strategic plan development Market entry and sales & distribution strategy Market assessment and entry strategy Market assessment and entry strategy Market assessment and entry strategy Supply chain optimization Process reengineering and IT systems improvement E-business opportunities assessment and entry A.T. Kearney 23/3603/37 strategy

Similar industry studies in India

Recommendation for development of Indian Automotive Industry for Society of Indian Automotive Manufacturers (at that time AIAM) The study covered industry wide issues and specific issues and challenges faced by competitive commercial vehicle, passenger cars, two-wheelers, and component segments ACMA representative were members of the task force and interacted with the project team Study on Foreign Direct Investment in India (later published as a white paper)

A.T. Kearney 23/3603/38

Selected CVs

A.T. Kearney 23/3603/39

Zafar Momin Vice President, Director of Asian Automotive Practice



Education Northwestern University, Kellogg Management School Purdue University Industry Experience United Technologies Corp. General Motors Corp. Ford Motor Company

MBA M.S. / B.S. Mechanical Engineering

General Management, Southeast Asia Product development, manufacturing, marketing Business planning

Selected Consulting Experience Over 14 years of management and consulting experience - the last 8 in Asia Representative automotive experience includes: For one the world's largest automobile OEMs, completed an Asia Pacific study which involved detailed analysis of distribution channels and related economics of automotive dealers in Japan and the rest of Asia, assessment of competitive strategies, and success factors in various Asian markets For a large Asian automotive OEM, developed an innovative vehicle market-entry strategy for the US market built around target marketing and e-commerce applications For the after-sales division of a major OEM, developed an Asia-wide parts distribution strategy based on the economics of transport logistics, inventory and financial profitability. Developed and implementing web-enabled systems program across Asia For a large Indonesian group, developed a business process model and IT plan for the automotive business. Identified cost savings and top-line opportunities in manufacturing and distribution For a large automobile manufacturer, identified and implemented a cost reduction program which saved over $4 million per year in manufacturing costs for a leading car model For a major Japanese OEM, assessed and recommended Asia Pacific organization strategy Identified over $100 million in structural cost reduction opportunities for a major auto OEM
A.T. Kearney 23/3603/40

Dr.-Ing. Gerald Weber - Vice President, Germany



Education Fraunhofer Society, Institute of Production Technology and Automation, IPA Stuttgart - doctorate in engineering Stuttgart University - graduate engineer, mechanical engineering, production technology, plant management Tool-maker Summary of experience Over 18 years of very broad scale Automotive Operations Experience primarily in Manufacturing, Logistics and product development with a global scope Prior Industry experience General Site Manager Volkswagen Plant, Wolfsburg Technical Vice President SKODA a.a.s, Czech Republic and Member of the Board Exec. Director of Central Manufacturing Volkswagen Group, Wolfsburg Planning Powertrain Operations Assistant Director, Technical Autolatina, Sao Paulo, Brazil and Industrial Planning (Volkswagen/Ford) Plant Manager Volkswagen, Taubate, Brazil Head of Logistics, logistic planning and AUDI AG, Neckarsulm and production methods planning Selected Consulting experience Projects in Research Institute (IPA) in German and Swiss industry, primarily in Automotive Since two years senior professional and Vice President with A.T. Kearney in its Global Automotive Practice, primarily responsible for manufacturing and operations strategy for OEMs and suppliers; e-business implementations in procurement,supply-chain and engineering

A.T. Kearney 23/3603/41

Steve Young - Vice President, London



Summary of experience Steve is Vice President and joint Head of A.T. Kearneys European Automotive Practice, working with OEMs and suppliers in marketing strategy, operations, sourcing and distribution. Steve has particular expertise in supply chain issues, including the application of lean distribution in the industry. Prior work experience British Leyland, Senior Industrial Engineer Ford Motor Company, Production Management and Industrial Engineering Edwards High Vacuum (BOC), Production Manager Areas of expertise Strategy Operational cost reduction Supply chain management Marketing Business process reengineering Strategic Sourcing Selected Consulting Experience - Vehicle Manufacturers World Class Benchmarking of key European suppliers on behalf of a major vehicle manufacturer Platform strategy for global automotive leaders European operations European logistics strategy for inbound materials for a leading car company Cost reduction study on distribution of finished vehicles in four European markets Lean distribution planning and implementation for a leading European car manufacturer Evaluation of potential acquisition of a specialist car manufacturer, including market and investment forecasts Market entry strategy for a European car manufacturer into an East European market Prioritisation of key international mature and emerging markets for a premium car manufacturer Evaluation of sourcing opportunities in Central Europe for a global auto manufacturer Development and implementation of a global integrated supply chain for a leading agricultural and construction equipment manufacturer
A.T. Kearney 23/3603/42

Dr. Arindam Bhattacharya - Principal, New Delhi



Education Eng Doc (Warwick University, UK), M.Sc. (Warwick University, UK) MBA (I.I.M. Ahmedabad), B.Tech. (Hons.) (I.I.T., Kharagpur) Areas of Expertise Business strategy Process re-engineering Manufacturing improvement Supply chain management Summary of Experience Over 11 years of consulting experience 4 years of industry experience in industry in manufacturing and TQM implementation Select Consulting Experience Led the team which carried out industry competitiveness study for the Association of Indian Automotive Manufacturers Led the team which is developing new revenue generation initiatives for Indias leading auto firm Led the team which developed the business plan for an innovative automotive product for a multilateral finance body Managed the team which carried out supply chain integration and strategic sourcing at a large commercial vehicle company Managed the team which carried out strategic sourcing, inbound supply chain re-design and procurement transformation assessment at leading two-wheeler firm Led the team that developed the strategy to restructure one of Indias leading component manufacturer

A.T. Kearney 23/3603/43