Engine Platform Shifts One of Many Issues Facing Powertrain Suppliers, According to CSM Worldwide

DETROIT, June 24 -- CSM Worldwide recently held their first- ever conference focused exclusively on the global powertrain market. A team of CSM analysts presented to a full house of executives from powertrain component and system suppliers. Presentations ranged from an overview of global engine and transmission sales and production to a close look at the advanced powertrain market of hybrid-electric and fuel-cell vehicles.

According to CSM, engine platform consolidation remains both the biggest threat and biggest opportunity to powertrain suppliers. Between 2000 and 2008, the number of engine platforms will decline 25 percent from 156 to 121. During that same period, engine platforms with global volumes in excess of 750,000 units a year will comprise more than half of total global engine production, an increase of 35 percent.

Other key findings:

* In the advanced powertrain arena, CSM says fuel cell system cost reduction and infrastructure development will take until the next decade. Meanwhile, internal combustion engines and hybrid variants will continue to improve, thereby raising the bar for fuel cells.

* Japan and Korea will continue to grow as a design center for new engines. By 2008, 34 percent of engines built in North America will be designed in Japan and Korea. This is up from 18 percent in 2001.

* Beginning in 2005, CSM calls for growth in 6-speed automatic transmission builds. Six-speed automatics, which currently account for less than 1 percent of the North American market, are forecast to hold 21 percent of the market by 2008. Benefits of the 6-speed include improved fuel economy and the ability to keep an engine in its optimal torque range.

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.