e-Commerce Hits the Auto Industry - Published By just-auto.com

26 October 2000
e-Commerce Hits the Auto Industry - Published By just-auto.com
    LONDON, Oct. 26 http://www.just-auto.com -- In its first
research report published today, just-auto.com examines the extensive changes
facing the automotive industry as a direct result of rapidly developing
e-commerce and e-business structures.  The study -- undertaken in alliance
with Auto Business -- concludes that the automotive industry faces a shake-up.
The supply chain will be turned on its head and will be increasingly customer,
rather than industry, driven.
    The feature at http://www.just-auto.com/features_detail.asp?art=311 quotes
a joint Deutsche Bank/Roland Berger report which concludes that total savings
along the North American automotive supply chain resulting from B2B
initiatives would be $1,188 per vehicle, with vehicle manufacturers and tier
1 suppliers contributing almost 66% of the total savings (80% in Japan and
73% in Europe).
    However, the study also indicated that, even in a favourable scenario,
around 74% of these savings ($878) would be passed on to consumers (81% or
$967 under less favourable assumptions).  In Europe and Japan the percentage
of savings passed to consumers was estimated at 70%, making the consumer the
clear winner in all regions.
    The rate of savings retention at different supply chain levels was also
estimated, and this also indicates winners and losers in the chain.  In North
America it was estimated that vehicle manufacturers would be able to retain
20% of their achieved cost-savings -- 5 percentage points lower than in Japan
and Europe.  Pass-through from the vehicle manufacturer to consumer was viewed
to be predicated by industry overcapacity and increasing competition in every
vehicle market segment -- suggesting the pass through of cost savings would be
higher for volume-biased vehicle manufacturers, and less for specialist or
luxury-biased vehicle manufacturers.
    just-auto.com Managing Editor, David Leggett, said:  "There is a tidal
wave of e-commerce and e-business about to hit the auto industry.  It's been
talked about to death, but there is a general uncertainty about how far the
industry's structures will change and over what timescale.  This report puts a
lot of the hype and a lot of the discussion into a sensible perspective.  One
thing looks increasingly certain:  costs and prices will continue to move
down.  It's good news for consumers, but many suppliers will be squeezed"
    To read the feature go to:
http://www.just-auto.com/features_detail.asp?art=311

    just-auto.com is the premier online portal for automotive industry
professionals worldwide.  Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
automotive industry information.