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K>MOBIL 31 // KIRCHHOFF Automotive Markets: Suppliers
Let’s take up the challenge!
r The German supply industry in global competition
t 10
German car manufacturers are among the winners
in global competition. They achieved a new
all-time high production record in Germany in
2007 with 5.7 million passenger cars produced,
the export ratio increased to 75 %, over five
million German brand cars were produced at
overseas locations, their global market share increased
to 17 % and in China, the fastest-growing
car market in the world, German brands are even
recording sales above the market growth rate.
Is the German supply industry, so heavily reliant on
the middle market, able to keep up the pace? Is it
well funded and financially strong enough to successfully
meet the challenge of global competition
with regard to product innovation (research and development),
investments in cost-optimized production
facilities, new plants with JIT logistics concepts
and, last but not least, recruit the respective human
resources needed to accomplish all this?
In its study of the TOP 100 global suppliers, the
renowned market research and analysis institute
Droege & Comp. raises some doubt.
The result of the study: “The Japanese are expanding
their leading market position and establishing
themselves at the top, the Europeans are stagnating
and the North Americans are coming a poor last by
a big performance margin.”
On taking a closer look at the results of the study,
however, it quickly becomes evident that it really
only exposes the structural weaknesses of multinational
companies. The strength and the success
of middle-market, family-run businesses is in avoiding
these pitfalls..
VDA President Matthias Wissmann came to the
same conclusion: ”Middle-market suppliers in Germany
are very well equipped to cope with the chal-
lenge of global competition. It is particularly the
middle-market suppliers who have the courage and
energy to exploit the opportunities globalization
offers by building new production plants overseas.
On the contrary, not opening sustainable production
plants on site in up-and-coming markets would
greatly weaken our ability to compete.”
On the subject of innovation, Wissmann continues:
“The subject of “eco innovations” is a sphere of activity
particularly suited to our supply industry. The
middle-market companies with their flat hierarchical
structures and high degree of innovative power
represent a great opportunity for our industry to
rapidly implement new ideas and get them on the
market.” With over 16 billion euros, the automotive
industry provides almost one third of all industrial
research funding in Germany. A significant part of
these funds is provided by the supply industry.
KIRCHHOFF Automotive already introduced
this successful development several years ago. It
founded an R&D center, the TEC Center at the company’s
headquarters in Attendorn, it purposefully
expanded its prototype and toolmaking center, it
optimized costs at several plants and initiated efficient
production and logistics concepts at 17 new
locations in 9 countries.
Arndt G. Kirchhoff, Managing Director and CEO of
KIRCHHOFF Automotive, states: “We are on the
right track. But we are still a long way from reaching
our objective. . Our customers’ problems are our
opportunities internationally, if we are capable of
offering the right individually tailored solutions.”
Let’s take up the challenge!
Ulrich G. Schröder