63 Percent of Automotive Companies Say Future Product Planning Now More Complex
Some 84% of automotive companies say that information on future car models is important to their company’s strategy, yet only 39% claim to have a detailed, written-down forecast, according to a new survey for PLDB, the auto model database from industry analysts just-auto.
The global survey, the first into the impact of future car model program information in automotive planning, also reveals that almost two-thirds of auto manufacturers and suppliers believe that planning for the future has become more complex over the last 12 months.
Understanding the automotive industry’s fast-moving new product cycles and actions plays a key role in automotive companies’ strategic planning.
Half of the companies surveyed said that they found obtaining information on vehicle manufacturers’ future model programs either “difficult” or “extremely difficult”. Only 15% claimed that they were able to find the required information without difficulty.
According to the survey the biggest obstacle in producing an accurate forecast is the lack of data from customers, followed by the cost of sourcing data and a lack of up-to-date information. Lack of resources and in-house expertise also emerged as barriers to effective forecasting.
Managing editor of just-auto Dave Leggett said: “Given the automotive industry’s reputed ability to develop deep relationships between suppliers and manufacturers, this survey reveals that there is still room for improvement.
“Over a third of suppliers claim that the information flow on future model programs from OEMs is poor. This inefficiency will doubtlessly result in increased manufacturing costs, and higher vehicle prices on the showroom forecourt,” Leggett added.
Surprisingly, given the claimed importance of future product program data, one-in-six of the automotive firms surveyed admitted to not using third-party data to benchmark and reinforce their own forecasts.
The survey has been launched as part of a campaign by just-auto, the owner of future product program database PLDB, to improve the free flow of data within the automotive supply chain. The full results of the survey, including a commentary by analyst Glenn Brooks, can be downloaded here: http://just-auto.com/automotive-future-product-program-report
PLDB is the light vehicle production model database from just-auto.com. It was developed to help sales, marketing, planning and engineering teams in the motor industry understand auto manufacturers’ future model programs, perform competitive analysis and identify sales opportunities. PLDB contains production life data of over 1,700 current and future models globally across 251 car brands. The tool combines GANTT-style lifecycle charts with estimated production volumes and expert analysis.