Study: Automotive Suppliers 2017 | Page 9

Apple Google Daimler VW BMW Continental Hella Schaeffler Tata Motors SAIC Tesla Geely Brilliance Apple Google Daimler VW BMW Continental Hella Schaeffler Tata Motors SAIC Tesla Geely Brilliance 9 3) Competitive landscape of the automotive industry faces disruption COMPETITIVE LANDSCAPE AND CAPITAL MARKET SNAPSHOT RATIONALE PAST CAR-CENTERED COMPETITIVE LANDSCAPE OEMs OEMs ESTABLISHED OEMs FUTURE DIGITAL COMPETITIVE LANDSCAPE OEMs MARKET CAPITALIZATION 2016 [bn €] CASH RESERVES 2016 [1] [bn €] 699 TECHS 503 59 75 OEMS & SUPPLIERS 73 61 38 4 3 111 41 NEW OEMS 38 12 8 205 TECHS 70 n/a 10 OEMS & SUPPLIERS 21 6 2 TECH GIANTS 1 1 2 10 NEW OEMS 1 1 0 In the past, OEMs competed with each other and the role of suppliers was clearly defined. A much more complex landscape is evolving, with the relevance of established OEMs decreasing due to new (tech) entrants. Large Tier 1 suppliers will drive consolidation to enhance their roles as system integrators. Smaller suppliers will pursue specialization to cope with increasing pressure. The changing competitive landscape will also result in new interaction between OEMs and suppliers as well as increasing price sensitivity due to low-cost, country-based OEMs. Uber [2] [1] Cash and cash equivalents [2] Based on IPO valuation Source: Annual Reports 2015 of BMW, VW, Daimler, Bosch, Continental, Schaeffler, ZF; Statista.de; Onvista.com; Nasdaq.com; Bloomberg.com; goetzpartners analysis Uber [2] Capital markets show a stronger belief in new players. Techs have deeper pockets to change the competitive landscape through M&A activity.