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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

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

background and motivation
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”?
markets are different
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
the current markets
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
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
meetings the market needs
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
the solution
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

the solution8
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)

strategies for success
Strategies for Success
  • Local government partnerships
  • Worldwide manufacturing
    • Consistent quality standards
    • Local investment
    • Reduced production costs
  • Brand name affiliation
  • Customer support
  • Standardized generic parts
conclusions
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.
slide11

Group Photo

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Thank You!