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Model Concept for the Future Núria Margarit Bel Josh Chambers Victoria Heindorff Steve Jacobsen Marion Kantz Andy Mantovan Miguel Molina Cecchetti Toma Teves Group 2 Team leader: Dr. Ulix Göttsch München, 14 th of January 2003 Background and Motivation Motivation

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Model concept for the future l.jpg

Model Concept for the Future

Núria Margarit Bel

Josh Chambers

Victoria Heindorff

Steve Jacobsen

Marion Kantz

Andy Mantovan

Miguel Molina Cecchetti

Toma Teves

Group 2

Team leader: Dr. Ulix Göttsch

München, 14th of January 2003


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Background and Motivation

  • Motivation

  • Traditional markets: USA, Europe, and parts of Asia are largely saturated

    • Difficult to significantly increase sales in a competitive market.

  • „Emerging Markets“ offer the most growth potential

    • New market opportunities in countries with quickly growing economies

  • The problem to solve:

  • Design a model program for a global car manufacturer.

  • Can there be a car that satisfies the demands of all emerging markets?

  • Could there be a “world car”?


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Markets Are Different

  • Political and Legal Differences

  • Taxation

  • Environmental regulations

  • Customs

  • Safety standards

  • Labor laws

  • Social/Cultural Differences

  • Demographic trends

  • Family structures

  • Aesthetic preferences

  • Status and prestige

  • Environmental awareness

  • Economic Differences

  • Quality of infrastructure

  • Purchasing power

  • Availability of natural resources

  • Technological capability

  • Labor costs


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The Current Markets

  • India

    • Imported used cars

    • Regionally produced discontinued cars

    • 2-stroke motorcycles

  • Middle East

    • Imported used American cars

    • Japanese cars

    • Luxury cars

  • Africa

    • Jeeps and Trucks

  • Latin America

    • Inexpensive cars

    • Midsize

    • Trucks (4WD)

  • Australia

    • Sedan with pick-up bed and big engines

  • Europe

    • Regionally produced cars

    • Family sedans/station wagons

    • Fuel efficient and diesel cars

  • USA

    • SUV’s

    • Midsize

    • Pick-ups

    • Mini-vans

  • California

    • Gas-electric hybrids

  • China

    • Inexpensive cars

    • Small cars

    • Motorcycles

  • Japan

    • Intelligent cars

    • Small cars

    • Hybrids

  • South East Asia

    • Fuel efficient cars

    • Inexpensive cars

    • Regionally produced cars


  • A look at emerging markets l.jpg
    A Look at Emerging Markets

    Characteristics of the Markets:

    • Limited purchasing power

    • High sales taxes

    • High density urban areas

    • Low fuel qualities

    • Increasing use of IT

    • Inadequate transportation infrastructure

    • Lack of skilled labor

    • Limited distribution and service network


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    Meetings the Market Needs

    Characteristics of the Markets:

    • Limited purchasing power

    • High sales taxes

    • High density urban areas

    • Low fuel qualities

    • Increasing use of IT

    • Inadequate transportation infrastructure

    • Lack of skilled labor

    • Limited distribution and service network

    Characteristics of the Car:

    • Inexpensive

    • Compact

    • Fuel efficient

    • Simple to produce

    • Robust to quality of fuel

    • Durable

    • Easy to maintain

    • Tolerant to poor road conditions


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    The Solution

    Basic Configuration:(simple version, min. luxury)

    - “Safety Cell“(engine and passenger compartments)

    - Drive Train (engine to wheels)

    - Chassis and Suspension

    - Passenger compartment(Interior: front seats, dash board)

    Utility car

    Utility car (camper)

    Family car


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    The Solution

    Modular Additions:

    Exterior:

    - body panels (plastics)

    - bed for utility car (load zone)

    - doors for the family car

    - rear seat “safety cell“

    - luxury upgrades(e.g. designer panels)

    - utility upgrades (e.g. cover, camper)

    Interior:

    - rear seats for the family car

    - luxury upgrades(e.g. navigation system or CD player)


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    Strategies for Success

    • Local government partnerships

    • Worldwide manufacturing

      • Consistent quality standards

      • Local investment

      • Reduced production costs

    • Brand name affiliation

    • Customer support

    • Standardized generic parts


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    Conclusions

    • Emerging markets offer greatest potential for sales growth in the near future.

    • A “Modular Automobile Concept” addresses the various requirements in different market regions.

    • Standardization and local cooperation can be used to reduce production costs.

    • Modularization allows market segmentation to maximize profit.


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    Group Photo

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    Thank You!


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