Automotive Industry...
19
Automotive Industry Perspective Scott Paradise August 7, 2017 Vice President
Transcript of Automotive Industry...
Automotive Industry Perspective
Scott Paradise
August 7, 2017
Vice President
The supplier industry is worth $1 TrillionMagna’s global ranking is #3Our sales exceed $36 Billion
MagnaProductAreas
SEATING EXTERIORS VISION SYSTEMSCLOSURES
BODY & CHASSIS POWERTRAIN ELECTRONICS
COMPLETE VEHICLE ASSEMBLY
Market Overview
© 2017 IHS MarkitTM. All Rights Reserved.© 2017 IHS MarkitTM. All Rights Reserved.
5
Transition from Mature Markets to Emerging Markets IntensifiesGlobal Production Growth
© 2017 IHS MarkitTM. All Rights Reserved.© 2017 IHS MarkitTM. All Rights Reserved.
6
Assessing the Market Portfolio review– Cycle check– Goals– Risk profile– Timeframe– Demand– Capabilities– Technology
Risk mitigation– Customer base– Diversification– Hedging
Action plan– Assess– Diagnose– Execute
0
2
4
6
8
10
12
14
16
18
20
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Mill
ions
NA Production
Recession
We are here
NA Light Vehicle Production
© 2017 IHS MarkitTM. All Rights Reserved.© 2017 IHS MarkitTM. All Rights Reserved.
7
North American Light Vehicle Production by Country
2016 – 2024
-362,000CAGR = -2.0%
+1,046,000 CAGR = 3.3%
10.1
11.511.812.0
-504,000CAGR = -0.5%
11.2
Production Outlook
The world is changing.The consumer is changing.
Electrification
New Mobility
AutonomousDriving
Electrification
ICE62%
Microhybrid34%
PHEV3%
EV1%
2016
ICE31%
Microhybrid35%
Mildhybrid21%
PHEV10-12%
EV3-6%
2025
Electrification Take Rate – 2025
AutonomousDriving
Disclosure or duplication without consent is prohibited*Indicates Level 0-5, all other take rates are only Level 0-4
Level 017%
Level 124%
Level 237%
Level 318%
Level 44%
Autonomy Take Rate –2025
Benefits of autonomy:• Greater road safety• Independence for some• More efficient travel • Reduced congestion
New Mobility
Source: IHS
Miles Driven Globally 2016-2030
NAFTA Modernization Magna is:
– A global supplier– Flexible with its business practices – Responsive to changing business climates– A supporter of free trade and ability to openly compete in global
marketplace
Our Position • No country of origin content minimum within the NAFTA rule
of origin• No Region Value Content (RVC) percent increases to the
specific product rules of origin (60-62.5%). – If a change - 65%
• No addition of input materials or parts to the trace list – Specifically electronics, steel and/or aluminum
Our Position • Increase deMinimis from 7% to 10%• Allow R & D and engineering costs to be included as part of
the RVC calculation• Harmonize safety and environmental regulatory
requirements• Motor Vehicle Safety Standards accepted by all NAFTA
countries• Improve Temporary entry for business persons
