Smaller OEMs to Take Greater Share of Global Auto Production, According to CSM Worldwide

DETROIT, June 4 -- By 2008, smaller automakers -- those with production volumes of less than 4 million units per year -- will have made significant gains in their share of overall global vehicle production, according to CSM Worldwide.

Production of the top six OEM groups in the light vehicle industry will grow at a pace of 1.8 percent on a compound rate from 2002 to 2008. This group includes General Motors, Ford, DaimlerChrysler, Toyota, Renault/Nissan and Volkswagen. Outside the traditional mass markets of the U.S., Canada, Western Europe, Japan and Australia, this same group will grow at a 6.3 percent rate.

Another group of smaller, more flexible OEMs will grow at a pace of 5.3 percent globally to 2008. This group includes PSA, Honda, Hyundai and BMW. Outside the traditional mass markets, this group will expand significantly -- at a pace of 12.1 percent per annum.

"The message is that smaller is better in today's marketplace," says Michael Robinet, vice president of Global Forecasting Services at CSM. "The big automakers have more burden, some of them need to address issues of overcapacity, and the economies of scale they once enjoyed have run their course. Smaller automakers are more nimble, they tend to have strong platform rationalization strategies, and they stick to segments they understand."

Honda and PSA are prime examples of smaller companies that are forecast by CSM to gain in global production share. At Honda, a regimented global platform approach reduces development and production costs, and a strong strategy across the B, C and C/D vehicle segments will create product breadth in China. PSA's strategy calls for partnerships and OEM powertrain arrangements to extend into new vehicle segments without the burden of a heavy balance sheet.

CSM Worldwide supports more than 350 automotive suppliers with global market intelligence and forecasting services. With corporate offices in Detroit, CSM Worldwide covers the global automotive environment from London, Brussels, Frankfurt, Budapest, Sao Paulo, Tokyo, Beijing, Shanghai and New Delhi.