AD&P; > December 2015 > TALK > Insights from IHS > Michael.Robinet@ihs.com
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INSIGHTS FROM IHS
Michael Robinet, Managing Director, IHS Automotive
Looking Ahead
Peering forward has always been
difcult when it comes to the
automotive industry. Taking the
time and resources within an
organization to understand the
future landscape is critical to
decisions about direction, capital
and resources. The world is littered
with companies that failed to see
the signs requiring course correc-
tion to continue to be prosperous.
As we enter the new year, what
are the key trends which every
supplier needs to understand?
Volume: North American light
vehicle production will hit new
highs in 2015 (17.5 million) and
again in 2016 (18.2 million).
Keeping up with this industry
pace has been difcult—stressing
maintenance, people, logistics,
etc. Companies need to be able to
stand back and contemplate the
way forward as a number of factors
will alter the future operating
environment.
Other Markets: The industry is
dealing with unprecedented slow-
downs in Brazil (down 20% in
2015) and Russia (of 28% in
2015)—two of the four BRICs are
anchors around the industry. To
be able to supply global platforms,
many suppliers have to co-locate
in these regions due to inventory,
local value-added and currency
issues. In hindsight, being in Brazil
and Russia are necessary evils
for many. How will non-North
American markets develop and
what are the risks involved?
Legislation: Events of the past two
months have shone a spotlight on
global emissions and compliance.
The key now is "over-compliance"
as OEMs and suppliers alike face
required emissions/fuel economy
improvement of ~5% year going
forward. Pressure to increase power-
train efciency and lightweight will
be relentless. Material change (to-
wards aluminum and advanced