Conrad Layson’s Post

[#Fleet #Management #Insights]: Challenges for Chinese Brands in the Booming Fleet Market The German fleet market is witnessing significant growth, presenting opportunities for new entrants. However, Chinese automotive brands face challenges in capitalizing on this boom. MG Motor AE as the strongest Chinese contender in the German fleet market, yet overall, Chinese brands struggle to gain a substantial foothold. Key findings from a Dataforce study highlight that brand recognition among company car drivers is a major barrier for Chinese manufacturers. While there's an openness to new brands, familiarity is crucial. BYD is recognized by a third of respondents, indicating a potential for growth among well-known Chinese brands. Quality remains a non-negotiable factor for fleet selection, alongside hopes for lower costs and concerns about service network and parts availability. German manufacturers like Volkswagen, Mercedes, and BMW continue to benefit from the fleet market's expansion, despite Tesla and others facing declines. Upcoming industry event "#Flotte – der Branchentreff" in Düsseldorf reflects the sector's vibrant activity and the pressing interest in electric mobility and the challenges in transitioning from government subsidies. The fleet market's composition is also shifting, with electric vehicles maintaining a stable market share amidst a resurgence in gasoline vehicles. #FleetManagement #AutomotiveTrends #ElectricVehicles #BrandRecognition #ChineseAutomakers #GermanMarket #SustainableMobility #IndustryInsights For Korean fleet management system providers, the European market offers significant opportunities, provided they navigate the challenges with strategic planning and a focus on brand recognition, quality assurance, and localized service offerings. https://lnkd.in/dB7cHXXN

Designed in China, made in Europe BYD to set up shop in Hungary according to a German broadsheet Frankfurter Allgemeine Zeitung, in a partial blow to Germany that were trying to lure China’s largest passenger car manufacturer to Ford’s Saarlouis plant, on the Luxembourg border. #Hungary is becoming a key cog in the European auto industry with the likes of Audi, BMW, Mercedes and CATL all present in the central European EU member state providing it with good credentials (suppliers and logistics) for attracting more inward investment with access to the 27 EU member states and EFTA nations while providing competitive labour costs. Avoiding the 10% import tariff, which could rise, on the EU investigation into China EVs, plus a lack of shipping capacity are also likely reasons, plus BYDs growth ambitions - once shipments to the region reach around 250K, local production/assembly makes sense, occupying one traditionally sized facility. SAIC are also likely to set up a local production site next with European volumes to touch 200,000 this year.

Europe • With a strong sales growth, the Chery subsidiary Omoda is pushing ahead with its expansion in Europe! February 10, 2024 LG The official launch in key markets such as Germany, Austria and the United Kingdom will take place during the second quarter, said Charlie Zhang, Executive Vice President of Chery Automobile International. “Omoda is poised for further growth in 2024.” Priorities in 2024 will be the expansion of the product matrix, the establishment of a robust brand ecosystem and collaboration with local dealer networks. "Omoda has emerged as a major player in the automotive industry in 2023, marked by important milestones and global recognition," Zhang emphasized. Jochen Tüting, Managing Director of Chery Europe GmbH, recently spoke to Car-Editors. Net. explaining that they are in very good discussions with dealer groups in Germany in order to cover the regions with sufficient partners. For basic coverage of the local market, 80 to 120 dealers would be needed. Chery was founded in 1997 and is now active in 80 international markets. Last year, the Chinese sold a total of 1.88 million cars - an increase of 52.6 percent compared to 2022 and a new record. Source; Autoflotte #automotive #dealership #omoda #chery #strategy #sales #network https://lnkd.in/epxRmtvU

🚀 BMW Expands in Southeast Asia with New Battery Assembly in Thailand 🌏 Since the early 2000s, #BMW's #Rayong plant has been a cornerstone of its strategy, assembling a wide array of models for the Southeast Asian market through the Completely Knocked Down (#CKD) #process. This move to include battery production is a strategic response to the burgeoning demand for electric vehicles (EVs) in the ASEAN region, home to over 270 million people. 🔋 With the introduction of high-voltage battery assembly, BMW not only aims to streamline its production but also to leverage Thailand's aggressive push towards electromobility. This initiative is expected to significantly reduce import tariffs and pave the way for locally produced electric models, aligning with the region's green transition. While the suppliers for the battery cells remain undisclosed, BMW's strategic partnerships in other regions hint at the potential for collaboration with leading battery manufacturers. This development is poised to enhance BMW's production capabilities in Thailand, which already boasts an impressive output of both automobiles and motorcycles. As we witness the automotive industry's shift towards sustainability, BMW's expansion in Thailand embodies a forward-looking approach to meeting the evolving demands of the global market. This move not only reinforces BMW's commitment to innovation and sustainability but also signals the growing importance of Southeast Asia as a key player in the automotive future. #BMW #Sustainability #ElectricVehicl https://lnkd.in/dHUU4Ra2

Notifying a study of AlixPartners about #China and the new number 1 #automotive #oems and the related updated world for legacy OEMs and #supplychain. #automobilbranche #automobilindustrie #automotivefuture #automotiveindustry #survey #studie #study Details Automobilwoche Fabian Piontek https://lnkd.in/edcM8zjW

After months of discussions with the Italian government, Chinese #oem Chery International appears to be close to a deal with the Spanish government to occupy all or part of the former Nissan assembly complex in Barcelona, Spain. Chinese #electricvehicle #oems are moving quickly to establish production facilities in the EU in advance of the European Union Comission’s investigation into Chinese government subsidies for the #electricvehicle industry. #autoforecastsolutions is also looking at how European subsidies affect the placement of #ev assembly facilities. The Spanish government has the potential to make either loans or grants available to #chery using funds from the 1.7 billion euro ($1.84 billion USD) PERTE program, itself made up from funds from the European Union originally earmarked for COVID pandemic relief. A decision from Chery on the Barcelona site appears imminent. #automotiveindustry #evs #subsidies #forecasting #automobilindustrie #newenergyvehicles https://lnkd.in/e2PUbh85

"Repeated counterfeiting scandals overshadow Toyota's sales and profit records. Nevertheless, Group CEO Akio Toyoda does not give a clear direction as to where the journey should go." Our thesis, regardless of the industry or circumstances : Revenues are earnings that have to be earned, as the term itself implies. When the money is the ultimate target and scale expansion takes precedence, when values and priorities are distorted, when operating structures and processes are subordinated - we inevitably count backwards as we start with the end - and an operational meltdown appears on the horizon like the famous "Amen" in church. On the other hand : Harnessing the power of the momentum can carry us to new hights. Hence the question to you : Where would YOU start if you would be in the shoes of the CEO ? Let's take that example to elaborate together on #howto. Spoiler alarm - we will share some "food for thoughts" on a potential solution approach here next Sunday for further elaboration. #chiefoperations #operationsmanagement #criticalthinking #knowledgemanagement #wirtschaftswoche https://lnkd.in/egZx8qit

#SAIC plant to build automobile manufacturing factory in Europe Chinese OEM #SAIC's exports to Europe increased sharply last year and this trend has continued in the first half of this year. From January to June 2023,SAIC sold 115,000 cars in Europe - a year-on-year increase of more than 140 percent. Globally, SAIC, which itself operates joint ventures with #Volkswagen and #GM in #China, has already sold 530,000 cars in the first quarter of this year alone, 40 percent more than a year earlier. The group's subsidiary SAIC Anji Logistics has even put four of its own cargo ship lines into operation for this purpose. 70 percent of these sales outside China were #MG Roewe models. In Germany, MG is by far the most successful Chinese brand to date, with a market share for new cars of 0.7 percent. There were just over 9,000 MG brand cars sold in Germany in the first half of 2023 - primarily the MG 4. https://lnkd.in/ebgcS47Y

Great interview of Michael Cole, President and CEO of Hyundai Motor Europe, in Germany’s leading top management publication. Mr. Cole sees Hyundai‘s innovation mindedness, strong and broad product portfolio in all drive train technologies, high yet affordable quality products, a well established brand and innovations in retail, including the recent collaboration with Amazon, as the key to succeed in the increasingly competitive market environment. I couldn’t have summed up our ground-breaking collaboration in better words. A great partnership that is driven by Customer Obsession, Innovation and Trust. 🤝 Manager Magazin: In the USA, Hyundai now also wants to cooperate with Amazon to sell cars. Is this really the right way? Michael Cole: Yes, we are convinced of it. We are also talking to Amazon in Europe, our brand is in good hands there. But sales will go through our dealers, they are involved. This will not be direct sales, our partners will benefit from additional attention. Manager Magazin: When will the first Hyundais be available on Amazon in Europe? Michael Cole: Even now. The Hyundai Brand Space on Amazon has been available in Germany since April, and other countries will follow. For those who have not seen the Hyundai Brand Space on Amazon in Germany yet, be invited to discover it now https://lnkd.in/e-UvrJBU #Hyundai #Amazon #AmazonAds #Automotive #Cars #Retail

Just as the good or bad harvest in the field is the result of countless interlinked preconditions, financial figures are the result of infinite interlinked factors as well and depend on how we do steer those to the extent we can. Some of these factors we can influence, others we cannot. Some factors are externally imposed, others are not. Some are technically - scientifically conclusive, others lack this characteristic. Notwithstanding, despite these facts, many management teams we worked with kept trying to plan for the unplannable (global developments, including their unpredictable influence on their own financial results) instead of watching and steering their own room for improvements closely. According to this article, Toyota’s manager seem to be one step ahead and publicly acknowledge the limitations of an approach that is often seen, looking instead at what they can (and must) influence themselves now, even if they may still have blind spots in one place or another. Having experienced comparable situations repeatedly, here are 3 possible steps to start with : · revise your values and priorities, incl. an adjusted direction · gain transparency and clarity, incl. valuable “everyday” tables · ensure that people can do their work, incl. producing quality from scratch Step by step, frame and create an interlinked organization which takes into account the composition of the company - and where people are free to create and compete again. What considerations would you like to incorporate yourself? Remark : To be emphasized that it is NOT about telling this company what to do or not, we are far too little into the details for that. However, this article addresses so many generally valid cause-and-effect factors that we would love to raise considerations that may help others as well to dive deep and get out again. Nevertheless, provided this sounds familiar to you, or you are seeking strategic guidance, and/or you are feeling trapped in day-to-day details: We are here to help of course, strategizing, aligning, and executing to transition your vision. DM us. #chiefoperations #operationsmanagement #criticalthinking #knowledgemanagement