Specialist
Former executive at Faurecia SE
Agenda
- Cockpit TAM growth outlook, including key markets of Europe, North America and China and realistic short- and medium-term content per vehicle growth opportunities
- Shift to cockpit of the future – unit economics impact across component segments of seating, interiors and electronics
- Competitive analysis – Continental (ETR: CON) vs Faurecia (PAR: EO) vs Bosch vs Denso (TYO: 6902)
- Pricing dynamics across tier 1 suppliers and OEMs (original equipment manufacturers), including cost pass-through opportunities and inflationary challenges
Questions
1.
What are the top 3-5 developments in the cockpit sector, focusing on cockpit of the future?
2.
In terms of purchasing behaviour, what are OEMs’ priorities around cockpit development? Is it in line with tier 1 development?
3.
What is your TAM outlook for cockpit of the future – including seating, interiors and electronics – over the next 3-5 years, based on the developments you outlined?
4.
How does the market size or growth profile differ across the component segments – seating, interiors and electronics?
5.
What are the key drivers of your 8% CAGR estimate for infotainment? Could you break that down on a component or OEM basis?
6.
How do you think about market size across the three key markets of Europe, North America and China? Are there key size differences across these markets?
7.
How do you think about the content per vehicle growth across seating, interiors and electronics, in both practical and value terms?
8.
To what extent can the increase in content per vehicle be passed on to the customer, as you mentioned it’s a big hit for OEMs?
9.
What are the typical pricing dynamics between tier 1 suppliers and OEMs when we think about cockpit of the future – so looking at seating, interiors and electronics?
10.
Logistics and transportation has been a key post-pandemic issue due to freight capacity. What are the opportunities to pass transportation or logistics costs on to OEMs?
11.
Who do you think are the key players in cockpit of the future? Obviously, we have Faurecia and Continental. Could you outline the competitive positioning and who might be most likely to pick up or lose out on growth in the market?
12.
You mentioned electronics, obviously through Faurecia’s 2019 acquisition of Clarion and now through its 2021 acquisition of Hella. The Clarion division has been underperforming within the Faurecia group. What are the key issues in that electronics part of the business, and how does the acquisition of Hella improve its competitive positioning in electronics?
13.
What are the key improvements that are required with regards to Clarion and infotainment?
14.
We’re seeing growth in a new type of competitor for the legacy tier 1 suppliers, in particular regarding electronics. Tech players are moving into this space and taking market share. How competitive do you think legacy tier 1 suppliers can be vs more tech-based competitors or even start-ups in the sector?
15.
How do you think about the R&D investment required through the tier 1 network to support the growth in cockpit of the future?
16.
How does the R&D spend differ if you’re a tier 1 supplier that’s further behind vs Faurecia?
17.
How do you expect operating margins to shift as we move from current cockpits – and the content provided for those across seating, interiors and electronics – to the concept of cockpit of the future?
18.
Would the sweet spot in operating margins primarily be driven by margin growth in electronics or are you expecting growth across seating and interiors as well?
