Auto parts case studies

the following practical examples show how fiducia supports companies who need a strong partner in market intelligence and strategy implementation.

 

Automotive coils

The issue: Transfer of production from Europe to China with the aim of strengthening the market position.

The case: A US manufacturer of automotive coils identified an acquisition target in China which they wanted to buy in order to increase their China presence.

The findings: An extensive market analysis which included face-to-face interviews with foreign and Chinese competitors, customers and industry experts showed that the automotive electronic segment is at a stage of high growth typical of an emerging market. The technology that current manufacturers in China use is still relatively unsophisticated, so potential competition in the future will come from foreign manufacturers of high value-added products. Even though Fiducia identified a small number of sizeable targets suitable for M&A consideration, we recommended organic rather than acquisition-driven growth and a global competition strategy in tandem with a roadmap for the Chinese market.

 

Leaf springs and air vessels

The issue: Transfer of production from Europe to China with the aims of lowering cost and getting a sales access to the domestic market.

The case: A European manufacturer of leaf springs and air vessels wanted to shift some production to China for lower costs while at the same time using this as an entry point for selling to Chinese truck manufacturers.

The findings: The client’s high quality standards brought them into an unfavourable position due to the low price expectations and low quality requirements of Chinese customers. However, Fiducia identified separate high potential opportunities in the parabolic and air suspension segment despite the early stages of market development. After a full-scale marketing analysis was conducted, we gave several partnership recommendations to the client who is now in acquisition negotiations with a company identified by Fiducia.

 

Motors and electrical components

The issue: Taking advantage of the fragmentation of the auto electrical components (AEC) industry in China to enter the market as well as to achieve cost savings through lower priced sourcing opportunities.

The case: An Indian manufacturer of small motors and electrical components looked for an acquisition in China to create a sales foothold and use it as a base for sourcing components.

The findings: After an extensive analysis including a long-list of all relevant producers of AEC components, an overview of supply relationships between the AEC OEMs and end product manufacturers, an assessment of the production facilities of more than 10 AEC producers and an evaluation of the interest in buyout of shareholders while retaining client confidentiality, we recommended several targets.

» Latest News Index
» Subscribe Fiducia Newsletter