Presentació Manel Quero

Sales of engineering services for the automotive sector in China. Business case: Applus IDIADA

Manuel Quero

Manager, Business Development

February 2012

你好

nǐ hǎo

你好

nǐ hǎo

Business case: Applus IDIADA

01_ Short Corporate presentation

02_ OEMs Chinese market

03_ Applus IDIADA’s China implantation process

04_ Business in China

05_ 10 Keys to Success

Who we are & what we doApplus IDIADA is an engineering partner to the automotive industry providing complete solutions for product development projects worldwide

Our assets:

Professional teamAn international team of more than 1300 skilled and experienced engineers and technical experts specializing in automotive product development

First class state-of-the-art testing facilities A modern comprehensive proving ground and leading-edge laboratories

International presence in 20 countries Being close to our clients, to perform projects locally and better understand each market requirements

Innovation Continuously developing new services in a strategic, integrated and controlled manner

Know-how in all major vehicle functionalities

Experience in management of large projects

Complete solutions

for automotive engineering

Testing andCAD & CAE tools

1971 - First steps of IDIADA as “Institute for Applied Automotive Research” at the

University of Catalonia (Higher Engineering School)

1990 - Spin-off from the University and creation of IDIADA as an independent

company belonging 100% to the Regional Government of Catalonia

1999 - Privatization and creation of IDIADA Automotive Technology SA belonging 80%

to Applus and 20% to the Regional Government of Catalonia

Main milestones in our history and shareholder structure

Regional Government of Catalonia

80% 20%

Turnover evolution

(in millions of euros)

CAGR: Compound Annual Growth Rate

0

10

20

30

40

50

60

70

2005 2009

48,0

2007

90

2011

62,5

71,5

93,1CAGR: 11,7%

80

100

India 70 p.

New DelhiPune

Germany 50 p.

Ingolstadt MunichIlsfeldWolfsburg

Spain 700 p.

International presence

PolandPoznan

JapanTokyo

MalaysiaKuala Lumpur

ItalyTurin

Czech Republic 100 p.

Mlada BoleslavLiberecHradec králové

KoreaSeoul

Brazil 180 p.

Sao PauloCuritibaTatuí

China 40 p.

TaiwanLu Kang – Taichung area

ShanghaiBeijingChongqing

UKLondonHinckley

ParisMulhouse

France

TurkeyIstanbul

Barcelona Headquarters & Technical Centre

Madrid

Granada

Mojacar

Vigo

SwitzerlandGeneva

Detroit

USA

India 110 p.

Engineering

CAD / CAE

Testing

Homologation

Facility Management

Project Management

ThailandBangkok

RussiaNizhny Novgorod

Saudi ArabiaRiyadh

IDIADA’s services

Engineering

Homologation

Proving ground testing

Testing facility design

Complete development projects

Concept Finding &

Benchmarking

Styling & Feasibility

Package & Surfacing

Product Engineering

Design (CAD)

Product EngineeringSimulation

(CAE)

DevelopmentTest

Validation Homologation

Development led by vehicle functionalities and performance

Main Vehicle Functionalities

Passive Safety Active Safety Environment Comfort Reliability

Comprehensive engineering capabilities for turnkey vehicle development projects

at international level: Concept, CAD, CAE and testing of all major vehicle

functionalities with unique in-house state-of-the-art facilities

Engineering (1/7)

Structural analysis / Restraint system integration / Occupant protection / Pedestrian protection

Passive Safety

Engineering (2/7)

Active Safety

Advanced chassis evaluation techniques / Chassis tuning & system development / Brake system development

Engineering (3/7)

Powertrain

Integration / Engine calibration / CNG conversion / Alternative fuels / Anti-pollution systems

Engineering (4/7)

NVH

Interior noise tuning / Noise and vibration releases / Exterior noise / Vibration fatigue

Engineering (5/7)

Comfort

HVAC system development and validation / Thermal comfort

Engineering (6/7)

Reliability

Structural, Powertrain and general vehicle durability / Market driver assessment, road characterization and fleet validation

Engineering (7/7)

Electronics

ECU functional and fail-safe validation / SW&HW development support / On-board Networks definition & validation / EMC assessment

Break out box

(BOB)

ECU

Proving Ground

The most comprehensive independent proving ground

Homologation

Official homologation capabilities recognized in all markets worldwide

Testing Facility Design

Consulting services for complete project management of automotive testing facilities, from feasibility studies to commissioning

Investments

Examples of some recent investments

State-of-the-art Hemi-Anechoic Chamber for full NVH vehicle characterization

Wet handling track that complements our capabilities in vehicle dynamic evaluationWet handling track that complements our capabilities in vehicle dynamic evaluation

Continuously investing in new testing facilities: average 8 M EUR per year

Approximate value of the existing testing facilities: 300 M EUR

Continuously investing in new testing facilities: average 8 M EUR per year

Approximate value of the existing testing facilities: 300 M EUR

Main strengths and advantages

Development Integration

Project ManagementIntegration of CAD, CAE and TestingDesign led by functionalityThorough knowledge of all major vehicle functionalitiesStrong international presence

GZ Toyota

GZ Honda

Chongqing

Beijing

Shanghai

Shenyang

Harbin

Tianjing

Changchun

Baoding

Zhengzhou

HaFei

FAW-Mazda

FAW-VW

FAW

Brilliance

Brilliance BMW

FAW Toyota

BHMC

BBDC

BAIC Foton

Great Wall Motor

ZZN

JAC

DY KIA

CA Ford Mazda

Changan

CA Suzuki Guangzhou

Wuhan

Nanjing

Fuzhou

Hangzhou

Liuzhou

Haikou

Nanchang

Wuhu

Hefei

DFM Honda

DPCA

DFM

NAC-MG

NAW Fiat

NAW Iveco

Geely-maple

SVW

BYD

SGM

SAIC

Geely

SEM

Chery

Jiangling-Ford

Changhe Suzuki

SAIC GM Wuling

FAW Haima

DFM Nissan

OEMs Chinese Market

2000 First projects in China (Homologation & Engineering)

2004 Establishment of a permanent base in Shanghai as a Representative Office

2006 Moving to bigger premises (400 sqm)

2007 Transformation of the Representative Office into a Limited company in China (WFOE)

2008 Moving to new facilities in Shanghai, Zhangjiang Hi-Tech Park (1.000 sqm)

2010 Opening of a Branch Office in Chongqing

2011 Opening of a Branch Office in Beijing

2011 Moving to a new facilities in Shanghai, Kangqiao (5.000 sqm)

Main milestones in China

Labor and office costs

RANK RMB/YEAR (12 payments)Shanghai KAM 200.000Chongqing KAM 120.000 / 140.000Senior Automotive ENGINEER 150.000Civil SENIOR ENGINEER (on site) / Shanghai 180.000Junior Automotive ENGINEER 90.000 / 120.000

M2 RMB/MONTH RMB/M2 monthly DESCRIPTION70 20.000 285,71 Business Center in Shanghai (with furniture)

400 50.000 125,00 Business Center in Shanghai (without furniture)1.000 80.000 80,00 Hi Tech Park PuDong5.000 120.000 24,00 Industrial Area PuDong

LABOR COSTSLABOR COSTS

OFFICE COSTSOFFICE COSTS

Locations

Staff Total European Chinese

2006 4 1 3

2007 7 1 6

2008 12 2 10

2009 23 3 20

2010 26 3 23

2011 45 5 50

Locations

Chongqing (branch office)

Shanghai (main office, current location)

Beijing (branch office)

Guangzhou (office to be opened in 2012)

Shanghai Chongqing Beijing

Beijing

Shanghai

Chongqing

Guangzhou

Homologation

Passive Safety

CAE

Vehicle dynamics

Project management

Team in China

50 people, including 5 European Senior experts

What we do today

What we are developing

Durability, Brakes, Component testing

Complete vehicle testing

CAD / CAE

IDIADA’s presence in China

Offices in Shanghai, Beijing and Chongqing

Opening in Guangzhou 2012

Space: up to 2.500 m2 workshop

Operational during the first quarter 2012

New workshop space in Shanghai

Doing business in China requires understanding the people, culture,

etiquette and approach to business

By acquiring cross cultural skills, international business people can

maximize their prospects of success in China

Aim

中國

Junģ gue

中國

Junģ gue

People's Republic of China – Brief

Area: 9,60 million km2 Population:1,345 BReligion: 56 ethnic groups in China,

The Han people make up 92 percent Languages: ChineseCurrency: RMB yuanCapital City: BeijingMain festivals: New Year's Day (January 1), the Spring Festival (the New Year's Day by Chinese lunar calendar), International Labor Day (May 1), and the National Day (October 1)

People's Republic of China - History & Environment

China is one of the world's oldest civilizations with a chronicled history of more than 5,000 years

On 1 October 1949, established the People's Republic of China as a socialist state

Located in East Asia, it is a single-party state governed by the Communist Party of China

China has become the world's fastest growing major economy, the world's largest exporter and second largest importer of goods

A member of multilateral organizations including the WTO, BRIC, G-20

China is a recognized nuclear weapons state and has the world's largest standing army with the second-largest defense budget

2011 / 2012 Major Public Holiday Calendar

People's Republic of China – Public Holiday

Culture

Trust / Mistrust

In business transactions, trust must be established before any serious business relationship can be cemented

Face / Hierarchy

Face and hierarchy are closely related to the creation and development of the business network

Time / Long Term Orientation

For Chinese, once a relation is established it is hard to break and once a relation is broken, it is very difficult to reestablish

Values

China's ethical system involves respect for superiors, duty to family, loyalty to friends, sincerity and courtesy

Age brings increased respect and status

Handshaking is the accepted greeting, with a light handshake encouraged, lasting as long as ten seconds

Chinese lower their eyes slightly as a sign of respect

Staring may make Chinese uncomfortable

It is very important for Chinese people to "maintaining face" in everything they do. Therefore

• Never insult or openly criticize someone in front of others

• The relationship you develop with a person represents your relationship with his or her entire company

• Gifts are important, although expensive gifts could be taken the wrong way

Culture

Business Culture

Do's

Be aware of all favors done for you and prepare to respond in kind

In China, business relationships are personal relationships; establish a trusting personal relationship that demonstrates your respect

Business cards are important

Don'ts

Avoid unintentional criticism of others

Don't poke fun at someone, even if in fun

Culture

Business Culture

Chinese Etiquette and Customs

Address the person by a position title and their surname

Greetings are formal and the oldest person is always greeted first

Handshakes are the most common form of greeting with foreigners

Meeting Etiquette

In general, it is always welcome by gifts given

Do not give scissors, knives as they indicate the block of the relationship

Do not give clocks, handkerchiefs as they are associated with death


Gift Giving Etiquette

Four is an unlucky number so do not give four of anything. Eight is the luckiest number, so giving eight of something brings luck to the recipient

Always present gifts with two hands

Gifts are not opened when received

Gifts may be refused three times before they are accepted


Gift Giving Etiquette

The Chinese prefer to entertain in public places rather than in their homes, especially when entertaining foreigners

If you are invited to their house, consider it a great honour.

Arrive on time

Remove your shoes before entering the house

Bring a small gift to the hostess

Eat well to demonstrate that you are enjoying the food!


Dining Etiquette

Business Etiquette and Protocol in China

The Chinese don't like doing business with person they don't know

Business relationships are built formally after the Chinese get to know you

The Chinese see foreigners as representatives of their company rather than as individuals

Relationships & Communication

Rank is extremely important in business relationships and you must keep rank differences in mind when communicating

The Chinese prefer face-to-face meetings rather than written or telephonic communication

Meals are not usually the place for business discussions, depends on the level of confidence


Relationships & Communication

Meetings require patience. Mobile phones ring frequently and conversations tend to be noisy. Never ask the Chinese to turn off their mobile phones as this causes you both to lose the face

Guests are generally escorted to their seats, which are in descending order of rank. Senior people generally sit opposite senior people from the other side

Only senior members of the negotiating team will speak. Designate the most senior person in your group as your spokesman for the introductory functions


Business Meeting Etiquette

Only senior members of the negotiating team will speak. Designate the most senior person in your group as your spokesman for the introductory functions

Be prepared for the agenda to become a jumping off point for other discussions

Chinese are non-confrontational. They will not overtly say 'no', they will say 'they will think about it' or 'they will see'

Chinese negotiations are process oriented. They want to determine if relationships can develop to a stage where both parties are comfortable doing business with the other

Decisions may take a long time, as they require careful review and consideration


Business Negotiation

Do not use high-pressure tactics

Business is hierarchical. Decisions are unlikely to be made during the meetings you attend

Your starting price should leave room for negotiation


Business Negotiation

Business cards are exchanged after the initial introduction

Your business card should include your title

Hold the card in both hands when offering it, Chinese side facing the recipient

Examine a business card before putting it on the table next to you or in a business card case

Never write on someone's card in front of the clients


Business Cards

Wait to be seated, as there is a seating etiquette based on hierarchy in Chinese business culture

The host is the first person at the table allowed to begin eating and drinking. Then, the rest of the company can proceed with the meal

Business is usually not discussed during the meal

It will be appreciated if you use chopsticks. When you are finished eating, place your chopsticks on the table or a chopstick rest

Toasting, usually with Chinese white wine, is an important part of Chinese business etiquette. Toasts will be proposed throughout the meal. The popular toast is “GanBei" ("bottoms up!")

Business Entertainment


Popular Topics

Chinese scenery, landmarksWeather, climate, and geography in ChinaChinese art, antiqueFood, shopping etc. in ChinaYour travels in other countriesYour positive experiences traveling in China

Topics to Avoid

Never use the terms such as 'Red China', 'Mainland China,' and 'Communist China.' Just say 'China‘Never say “Taiwan is an independent country"


Expected topic of conversation

Visit• Pick up between Hotel and the company• Souvenir is necessary• Dinner is a plus• Information about sightseeing and shopping is a plus

Medium Term Stay

• Pick up between Hotel and the company• Supply the rice for lunch if necessary• Enjoy the local attractive nightlife• Leave some free time for sightseeing and shopping

Tips: How to Receiving Chinese Clients

1. Understand the cultural gap2. Be patient with the operation gap of the customer3. Be patient with the skill gap of the customer4. Be professional and flexible5. Respect Chinese tradition6. Understand the unclear explanations7. Respect everybody you meet8. Making friends prior doing business9. Giving prior to gaining10.Travel a lot around China

10 Keys to Success

Thank you very much for your kind attention

非常感谢您的关注

For further information:

Applus IDIADA

Main Technical Centre

L’Albornar – PO Box 20

E-43710 Santa Oliva (Tarragona) Spain

T +34 977 166 000

F +34 977 166 007

e-mail: [email protected]

www.idiada.com

Applus IDIADA Brazil

T +55 11 4330 9880


Applus IDIADA China

T +86 (21) 6210 0894


Applus IDIADA Czech Republic

T +420 493 654 811


Applus IDIADA France

T +33 (0) 1 41 14 60 85


Applus IDIADA Germany

T +49 (0) 841 8 85 38 0 (Ingolstadt)T +49 (0) 893 0 90 56 0 (München) T +49 (0) 537 1 55 55 5 (Wolfsburg) T +49 (0) 173 6102083 (Ilsfeld)


Applus IDIADA India

T +91 203 0556 900


Applus IDIADA Italy

T +39 011 3997 764


Applus IDIADA Japan

T +81 (0) 42 512 8982


Applus IDIADA Korea

T +82 31 478 1821


Applus IDIADA Madrid

T +34 915 095 795


Applus IDIADA Brazil

T +55 11 4330 9880


Applus IDIADA China

T +86 (21) 6210 0894


Applus IDIADA Czech Republic

T +420 493 654 811


Applus IDIADA France

T +33 (0) 1 41 14 60 85


Applus IDIADA Germany

T +49 (0) 841 8 85 38 0 (Ingolstadt)T +49 (0) 893 0 90 56 0 (München) T +49 (0) 537 1 55 55 5 (Wolfsburg) T +49 (0) 173 6102083 (Ilsfeld)


Applus IDIADA India

T +91 203 0556 900


Applus IDIADA Italy

T +39 011 3997 764


Applus IDIADA Japan

T +81 (0) 42 512 8982


Applus IDIADA Korea

T +82 31 478 1821


Applus IDIADA Madrid

T +34 915 095 795


Applus IDIADA Malaysia

T +603 9207 7018


Applus IDIADA Poland

T +48 61 6226 905


Applus IDIADA Russia

T +7 (831) 297 94 32


Applus IDIADA Saudi Arabia

T +966 53 41 47 301


Applus IDIADA Switzerland

T +41 219 22 12 85


Applus IDIADA Taiwan

T +886 4 7810702


Applus IDIADA Thailand

T +66 86 7917071


Applus IDIADA Turkey

T +90 262 679 1370


Applus IDIADA UK

T +44 (0) 7 979 691 631


Applus IDIADA USA

T +1 248 656 3469


Applus IDIADA Vigo

T +34 986 900 300


Applus IDIADA Malaysia

T +603 9207 7018


Applus IDIADA Poland

T +48 61 6226 905


Applus IDIADA Russia

T +7 (831) 297 94 32


Applus IDIADA Saudi Arabia

T +966 53 41 47 301


Applus IDIADA Switzerland

T +41 219 22 12 85


Applus IDIADA Taiwan

T +886 4 7810702


Applus IDIADA Thailand

T +66 86 7917071


Applus IDIADA Turkey

T +90 262 679 1370


Applus IDIADA UK

T +44 (0) 7 979 691 631


Applus IDIADA USA

T +1 248 656 3469


Applus IDIADA Vigo

T +34 986 900 300


Presentació Manel Quero

Business

Transcript of Presentació Manel Quero