OE Undercarriage Component Markets to Have New Opportunity
26 October 1998
Electric Systems Will Bring New Opportunities To OE Undercarriage Component Markets
MOUNTAIN VIEW, Calif., Oct. 26 -- The OE undercarriage
component markets are becoming increasingly competitive as auto makers
pressure suppliers for price reductions and as industry consolidation
continues. Nevertheless, technological advances in electric systems have
opened opportunities to market players, which may result in significant shifts
in market share.
The major technological trend in this market is the increasing use of
electronics in braking and steering systems. Electric steering systems are
about to be introduced into the North American market, and full electronic
steering systems may follow in time, according to Frost & Sullivan Analyst
Joerg Dittmer. Electric braking systems are further in the future.
According to new strategic research conducted by Frost & Sullivan
(http://www.frost.com), North American OE Undercarriage Component Markets, the total
market generated $11.9 billion in revenues in 1997. Vehicle production is
projected to decline in 1999 and 2000, even out in 2001, and resume growth
from 2002 on.
Prices are declining one to two percent each year because price sensitive
auto makers are demanding lower prices. This price pressure has also forced
industry consolidation, because bigger suppliers can realize economies of
scale and offer lower prices, Dittmer says. In addition, auto makers prefer
to work with fewer, more capable suppliers, which has also promoted
consolidation among suppliers.
Increasingly, auto makers are scrutinizing vehicle components to determine
where costs can be limited without decreasing the vehicle's value to buyers.
This trend is called decontenting, and is the result of the sticker shock that
auto buyers have been experiencing. Suppliers have responded by redesigning
products to be less expensive without losing functionality or quality, and by
maximizing manufacturing efficiencies. For manufacturers seeking to develop
products that help manufacturers advance their goals, opportunities can be
found in electronic systems, advanced materials, better engineering and
greater manufacturing efficiency.
Frost & Sullivan's new study, North American OE Undercarriage Component
Markets, is divided into the following segments: steering systems, brake
systems, suspension components and dampers and struts. Also provided in the
study are revenue forecasts, market shares, technology and market trends,
competitive issues and strategies.
Frost & Sullivan gives out Market Engineering awards to market
participants to recognize companies that have worked hard to make a positive
contribution to the industry. Winners are selected from an in-depth analysis
of market competitors and interviews with those companies that make up the
industry. Frost & Sullivan is pleased to announce NewTech Brake Corporation
of Blainville, Quebec, as the winner of the 1998 Market Engineering Product
Innovation Award for its Full Contact Disk Brake which promises greater
braking efficiency, less vibration, less heat and longer life.
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research include: Identification of industry challenges, market
engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help market participants
navigate successfully through the OE undercarriage components industry.
The companies participating in this market include: A.G. Simpson USA
Inc., Aisin World Corporation of America, Akebono Corporation North America,
Amcast Automotive, American Axle & Manufacturing Inc., American Showa Inc.,
Aralmex SA de CV, Arvin Ride Control Products Inc., Brewer Automotive
Components Inc., Chrysler Corp., Citation Corp., CMI International Inc., Cofap
of America Inc., Cosma International Inc., Delphi Chassis Systems, Delphi
Saginaw Steering Systems, Eibach Springs Inc., Hayes Lemmerz International
Inc., Intermet Corp., ITT Automotive Inc., Koni North America, Krupp Bilstein
of America Inc., Krupp Hoesch Suspensions Inc., KYB Corporation of America,
Lemforder Corp., Linamar Corp., Lucas Sumitomo Brakes Inc., LucasVarity plc,
Mannesmann Sachs AG, Meritor Automotive, NASCO Inc., New Mather Metals Inc.,
NHK Spring Co. Ltd, Oxford Automotive Inc., Robert Bosch Corp., Sumitomo
Electric Automotive Inc., Tenneco Automotive Inc., Tokico USA Inc., Tower
Automotive, Toyoda TRW Automotive Inc., TRW Automotive, Visteon Automotive
Systems, YSK Corporation, ZF Industries Inc., ZUA Autoparts Inc., Related
Companies: A.G. Simpson Co., AMAK Brake LLC, Ambrake Corp., Arvin Industries
Inc., Bayer AG, Cardone Industries Inc., Dana Corporation, Delphi Automotive
Systems, Delphi Delco Electronics, Eaton Corp., Federal Mogul Corp., Illinois
Tool Works Inc., Indiana Precision Technology, ITT Industries Inc.,
LucasVarity Inc., LucasVarity plc, Magna International Inc., MascoTech Inc.,
NewTech Brake Corporation Inc., Robert Bosch Corp., Siemens Automotive LP, SKD
Company, Tenneco Inc., TRW Inc., TRW LucasVarity Electric Steering Ltd, Unisia
JECS Corp., ZF Friedrichshafen AG, ZF Group North American Operations,
Industry Organizations: ABS Education Alliance, American Automobile
Manufacturers Association (AAMA), Association of International Automobile
Manufacturers Inc., Automotive Parts Manufacturers Association, Brake
Manufacturers Council, Canadian Vehicle Manufacturers Association, Institute
of Transportation Engineers, Insurance Institute for Highway Safety/Highway
Loss Data Institute, Motor and Equipment Manufacturers Association (MEMA),
Office for the Study of Automotive Transportation, Original Equipment
Suppliers Association, Society of Automotive Engineers (SAE), Government
Agencies: Federal Highway Administration (FHA), National Highway Traffic
Safety Administration (NHTSA), U.S. Department of Transportation (DOT), U.S.
Environmental Protection Agency (EPA).
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5696-18 North American Automotive Sensor Markets,
#5562-18 North American Automotive Electronic Control Module Markets, #5766-18
North American OE Engine-Related Component Markets, and #5163-18 North
American Class 6, 7 and 8 Truck OE Chassis Component Markets, and to support
industry participants with customized consulting needs.
Visit Frost & Sullivan's web site at: http://www.frost.com.
Report: 5767-18 Publication Date: Oct. 1998 Price: $2950
For more information in the United States, please contact:
Kathleen Cooney
California
650-237-4385
Fax 650-903-0915
kcooney@frost.com