CSM Worldwide Highlights Opportunities Created by the Growth of Global Platforms

Analysts identify a new benchmark for global platform production volume

DETROIT, Aug. 26 -- CSM Worldwide continues to urge automotive suppliers to adjust to the new reality of global platforms, global rationalization, global quality and global procurement in order to optimize growth opportunities. During their recently held annual North American Outlook conference, CSM stressed that North American suppliers must be concerned with non-North American output because exports are not an "if" but a "when" in most cases, most notably from newer destinations such as China, Thailand, India, Brazil, and Central and Eastern Europe.

Just a short time ago, the benchmark production volume for global platforms was 1 million units. The new reality is 1.5 - 2 million units, providing a greater base for OEMs to rationalize the cost of design and technologies. CSM predicts that by 2009 there will be more than 16 global platforms over 1 million units.

"Driven by OEM consolidation, the automotive world has become a smaller place. OEMs have strategically used consolidation to spread to all regions, enabling them to globally source many components and systems," says Michael Robinet, CSM vice president of global forecasts. "China, Central and Eastern Europe, and non-Japan Asia are paramount in the growth of global automotive production and sourcing."

The good news is North American production will increase from 15.8 million units in 2004 to 17 million units in 2009. Being a mature market, North America will be vitally important in driving greater technology levels and fitment. A mix of segments, OEM customers and content will drive tomorrow's opportunities. CSM identified a few of these key opportunities for North American suppliers:

-- Growth in cross-over and multiple activity vehicles (CUVs and MAVs) will increase demand for flexible interiors, electronic convenience items and a focus on safety.

-- Production of luxury branded offerings in North America will jump 69 percent by 2009, allowing the supply base new content opportunities.

-- Luxury-derived technologies will continue to cascade and be adopted into mainstream entries to drive further differentiation and value.

-- Strong powertrains help provide differentiation for both cars and trucks. Automatic transmissions with five or more speeds will capture over half the North American market by 2009.

According to CSM, flexible global platforms can offer greater opportunity for North American suppliers by extending products across a broader range of manufacturers and providing technological rationalization.

CSM Worldwide (http://www.csmauto.com/ ) supports more than 350 of the world's top automakers, suppliers and financial organizations with global market intelligence and forecasting services. With corporate offices in Detroit, CSM Worldwide covers the global automotive environment from London, Frankfurt, Paris, Tokyo, Shanghai, Sao Paulo, Singapore, Bangalore and Budapest.