CSM Worldwide Expects Global Platforms to Continue Driving World's Auto Markets

DETROIT, May 16 -- Global automotive platforms will continue to emerge and accelerate as OEM consolidations take root, according to CSM Worldwide. This and other automotive market foresight was presented by CSM at the company's recent Insider Briefing to an audience of automotive suppliers and manufacturers. Presentations included Global Production Outlook from Michael Robinet, CSM Director of Forecast Services, and OEM Procurement Strategies from Paul Haelterman, CSM Director of Market Assessment.

Other key conclusions of the presentations:

Expect overall growth through 2007 in the B segment (small cars such as the Mitsubishi CZ and Opel Corsa) and unibody architecture on a global scale. Mature markets such as North America offer supplier opportunities, primarily with New Domestics Toyota, Honda and Renault/Nissan. Japanese automakers are closely followed by Hyundai into higher margin mature markets. China is an emerging market with market potential and risk, but the building blocks are in place for longer-term growth. Aggressive price competition is being driven by overcapacity in the global marketplace. OEMs are spreading fixed costs over larger volumes through global platforms and component commonization from one region to another. Suppliers must review their customer's strategies and use competitive intelligence to understand their strategic position in the marketplace.