North American Auto Industry Marches to the Beat of a Different Drummer
13 May 1999
North American Auto Industry Marches to the Beat of a Different Drummer; PricewaterhouseCoopers Releases Findings of First-Ever Global Powertrain Study
DETROIT, May 12 -- How can the powertrain industry
successfully utilize global economies of scale in the face of regional market
requirements? Global stability masks regional disparities, and these
differences should be carefully considered when implementing global powertrain
strategies.
The unique differences between the North American auto industry and that
of the rest of the world are highlighted in the newly released Global
Powertrain Strategies Study, published by The AUTOFACTS Group, a division of
the Global Automotive Practice of PricewaterhouseCoopers.
"We've always known that vehicle production and consumption in North
America is vastly different from that of the global automotive industry," said
Peter Langlois, a senior consultant at the AUTOFACTS Group, and the study's
lead author. "But now we have quantitative evidence. For example, we can
definitely say that while the world's automotive growth is coming from
passenger cars that use small gasoline engines with overhead cams, North
America prefers larger cars and a much higher percentage of light trucks."
According to the study, the North American preference for automatic
transmissions is overwhelming, with nearly 83 percent of North American
vehicles equipped with automatic transmissions. By contrast, only 12 percent
of vehicles in Western Europe, 45 percent of vehicles in the Asia-Pacific
region, and 2 percent of vehicles in South America are automatic.
The first study of its kind to focus on the worldwide powertrain industry,
the Global Powertrain Strategies Study is an analysis of the demand and
supply-side issues facing the worldwide market for light vehicle engines,
transmissions and related components. Among other key findings in the study:
* The internal combustion engine powered by traditional fuels (gasoline
and diesel) will continue to dominate the powertrain field well into the
future. However, advanced engine technologies that show significant
promise include direct-injection technology, which offers improved fuel
economy (and fewer emissions) over both IDI diesel and spark-ignition
engines, and compressed natural gas -- the preferred fuel alternative of
both diesel and spark-ignition engines -- and electric-powered vehicles
that utilize a parallel-hybrid design.
* Hybrids and fuel cell-powered vehicles will not make major inroads
before 2005, due in part to the low cost of gasoline. Eventually, fuel
cells will be the powerplant of choice for electric vehicles.
* Key factors driving the future of powertrain technology are the
increasingly stringent global emissions and fuel economy regulations.
Yet global harmonization of vehicle regulations is not expected within
the foreseeable future.
"The powertrain is the most complex, expensive component of every vehicle
assembled," said Mr. Langlois, "which is why we initiated this study. It is
intended to equip powertrain executives and engineers, product planners and
procurement professionals with the knowledge to make informed future product
development and planning decisions."
The 3,000-page, multi-volume study takes a strategic view of the drivers,
trends, enablers and constraints in the global powertrain sectors. Prepared
by a team of PricewaterhouseCoopers automotive analysts, and powered by the
AUTOFACTS Global Automotive Knowledgebase, the Global Powertrain Strategies
Study covers the following issues:
* Regulatory trends
* Technology trends
* Engine & transmission consumption outlook
* Vehicle manufacturer powertrain strategies
* Powertrain supplier competitive analysis
The Global Powertrain Strategies Study also offers a review of significant
industry technologies and a profile of the major and regional vehicle
manufacturers, along with the 70 largest and most influential powertrain
suppliers. The study is based on more than 100 interviews with the leading
light vehicle manufacturers, including engineering, purchasing and product
planning officials; more than 20 interviews with powertrain supplier
executives; and technology and regulations reviews with engine, transmission,
electronics, emissions, and regulations experts worldwide, all conducted by
The AUTOFACTS Group's global network of automotive industry analysts. In
addition to Mr. Langlois, key authors of the study include: Suzanne Kinsler,
Brian Maxim and Karey McCann, with contributions from Charlotte Pike at
AUTOFACTS' Norwich, U.K., office.
The AUTOFACTS Group, a division of the Global Automotive Practice of
PricewaterhouseCoopers, is a leading provider of automotive strategy, market
analysis and competitive intelligence to the world's vehicle manufacturers and
marketers, automotive suppliers and support organizations. The AUTOFACTS
Global Automotive Knowledgebase is the industry's most comprehensive
automotive decision support tool, providing instant access to detailed market
sizing analysis and vehicle manufacturer and supplier competitive profiles.
PricewaterhouseCoopers (http://www.pwcglobal.com) is the world's leading
professional services organization. Drawing on the knowledge and skills of
155,000 people in 150 countries, we help our clients solve complex business
problems and measurably enhance their ability to build value, manage risk and
improve performance. PricewaterhouseCoopers refers to the U.S. firm of
PricewaterhouseCoopers LLP and other members of the worldwide
PricewaterhouseCoopers organization.