copyright 2004, visteon corporation visteon: the way forward in china cliff dawson, director asia...

Copyright 2004, Visteon Corporation

Visteon: the way forward in ChinaVisteon: the way forward in China

Cliff Dawson, Director Asia OperationsCliff Dawson, Director Asia Operations


AgendaAgenda

• Visteon Overview• Key relationships in China• The joint venture success model • The China slowdown – impacts and

responses from suppliers• Questions


Visteon CorporationVisteon Corporation

• $18.7 billion diversified manufacturer of automotive components and systems

• Capable of supplying approx 40% of a vehicle’s material value

• Approximately 72,000 employees, on 6 continents, in 25 countries

• Business with nearly every global automaker


Product LinesProduct Lines


Visteon Asia Pacific FactsVisteon Asia Pacific Facts• Been in the region for

more than a decade• 12,000 employees• 34 facilities

– Includes technical, manufacturing, sales and service centers

• 7 key partners• Well positioned with key

customers


A/C Systems, Condensers,Evaporators, Heater Cores,

Controls, HVAC Assy.

Interior, Exterior Trim

GEM, Clock, Amplifiers, SWAM, Cluster

IP, Seat, Door Panel Trim, Bumpers

Fuel Rail, FDM,Throttle Body

IP, Cluster, Trim Parts

Al.. Radiators

UARCOChangchun

Al. A/C HosesA/C Systems

Jiangxi FuchangNanchangA/C Systems

CondensersAl. Radiators, Controls,Evaporators, HeaterCores, HVAC Assy.

VTL ThailandRayong

RadiatorCSIL

Bhiwadi

A/C Systems, A/C Hoses,Plastics (IP, Clusters,Bumpers)

A/C Systems, Compressors,Radiators, Condensors,Heater Cores, Evaporators,Air Handling Assy. Fan & Shroud Assembly

ABS, AirbagRKE, GEM

Visteon Electronics Hiroshima

IP, Cockpit ModuleDuck Yang GroupUlsan, Yesan, Asan

HCC ThailandRayongStarter, Alternator

Visteon ElectronicShanghai

HCC KoreaPyongtaek,

Taejon, Ulsan

JCS Hiroshima

Visteon Philippines Santa Rosa

Dongfeng VisteonWuhan, Guangzhou, Shiyan

Yanfeng VisteonShanghai

HVAC

InteriorsYanfeng Visteon Beijing Interior Systems

Visteon Climate Control Beijing

VASIChennai

Interiors

VPCSI Chennai

Visteon JVVisteon 100%Products

Visteon AP OperationsVisteon AP Operations

Exterior/Interiors Plastics

VASIPune

Compressor

HCC Dalian

S/W, Airbag, Side Airbag, Seatbelt

Yanfeng Key Safety Systems

Powertrain Cooling, HVAC, Heat Exch.

Visteon Engine Control Systems Chongqing

Yanfeng Visteon Automotive Trim System Co., LtdChongqing


Visteon in ChinaVisteon in China

Beijing

Shanghai

Nanchang

Changchun

Chongqing

Wuhan

12

1

2 3

76

108 119

4

UARCO (FAW-VW; FAW)Aluminum Radiators/Heater Cores

Changchun

1

Beijing

2 Visteon Climate Control Beijing (Hyundai)HVAC, Engine Cooling, Heat Exch.Components

Yanfeng Visteon Beijing (Beijing Hyundai, Beijing Jeep,Beijing Futian)Interior systems and components

3

Chongqing

4 Yanfeng Visteon Chongqing. (Changan Ford)IP, Cockpit Assy, Bumper, Door Panel

Visteon Powertrain Chongqing (Changan, Changan Ford)Air Intake Systems, Powertrain Controls

Wuhan/Shiyan/Guangzhou

6 Dongfeng Visteon (PSA, Nissan, Honda)Interior systems and components, Exterior Trim

Shanghai

7 Yanfeng Visteon (SVW, SGM, SAIC, Chery, Other OEMs)IP, Seats, Door Panels, Consoles, Bumpers, Int/Ext Trim

8 Yanfeng Visteon Electronics (Ford, Mazda, SGM, SVW, Fiat, Other OEMs)GEM, Clock, Cluster, Radios, Amplifiers, KES

Visteon Asia Pacific Corporate Office9China Technical Center10China Commodity Sourcing Office11

Jiangxi Fuchang Climate System (Jiangling Motors) A/C Hoses & A/C Systems Assy

Nanchang

12

7 Yantai

7Shaoxing

6Shiyan

Note: Does not include operations of Yanfeng Visteon JVs with JCI (Seat Systems) and Key (Safety Systems)

Climate Control

Interior/Exterior

Electronics

Powertrain

5

5

8

8

8

8

Xuzhou

8 Shenzhen

7 Shenyang

Visteon Climate China (Hyundai, Ford)Compressors

Dalian

13

13 Dalian


Key Relationships in ChinaKey Relationships in China

• Halla Climate Control• Beijing Automotive Industry Corporation

(BAIC)• Shanghai Automotive Industry Corporation

(SAIC)


Formula for JV Success:Two strong partners with an equal stake in the

success of the business

Formula for JV Success:Two strong partners with an equal stake in the

success of the business

“One Platform” Cooperation Strategy

SAIC Advantages

Visteon Advantages

One YFV Team

Technology and advanced management processes

Market and local knowledge/capabilities


“One Platform” Advantages“One Platform” AdvantagesSAIC:• Support SAIC’s systems-oriented business consolidation strategy• Accelerate development of Yanfeng Visteon Technical Center capabilities

to support SAIC’s future development

Visteon:• Leverage the resources and capabilities of Yanfeng Visteon in Shanghai to

support growth of business with Visteon’s global OEM customers throughout China

– Human Resources– Manufacturing / Technical Capabilities– Financial Resources

• Integrate the majority of Visteon’s China business under a single management structure with a coordinated strategy


China Technical CenterChina Technical Center

• Will serve as regional engineering hub for electronics and interiors

• Scheduled for completion last quarter 2005

• Will include Visteon and Yanfeng Visteon engineering staff

• Will house prototyping and lab facilities to support interiors and electronics

• Development of products for global and regional consumption

China Technical Center


Golden period 2001 – 2004- substantial year on year growth- opportunities for OEMs and Suppliers- hungry market

• Companies setting up in this period had growth plans based on recent history

•Overcapacity begins to impact the market

• Controls on the economy applied in 2004 compound the situation

China’s Auto Market SlowdownChina’s Auto Market Slowdown


• Result has been market “normalization”

• China begins to “feel like” the more established automotive markets of the world

• China will continue to be a positive market in which to operate

• Normalization of the China market will require more sophisticated responses from suppliers



• What are the appropriate responses to “normalization”

• Strengthen partnerships developed in China• Broaden scope of established partnerships• Begin to rapidly apply established techniques

– Supply chain management– Lean manufacturing– Local and regional sourcing

• Look to build local capability– Design capability– Engineering and Development– Sourcing and supplier management– Program management



• Essential but difficult

• Greater autonomy and flexibility is needed

• Quality and cost are the most dominant factors for successful suppliers

China’s Auto Market Slowdown China’s Auto Market Slowdown


• China remains the most exciting market to be in despite is slowdown and rapid change

• Partnerships are the key to long term success

• The “normalizing of the market” requires suppliers to provide appropriate responses to maintaining a strong position in the automotive supply base

Summary: the way forward for suppliers Summary: the way forward for suppliers


Questions?

copyright 2004, visteon corporation visteon: the way forward in china cliff dawson, director asia...

Documents

yanfeng visteon chongqing

visteon corporation

yanfeng visteon svw

dongfeng visteon psa

bumpers ac systems

systems capable

chongqing slide

honda interior systems