Supplying to Mercedes-Benz' looks at what changes are happening at Mercedes in order for the OEM to accomplish the goals outlined in its "Commitment to Excellence in Procurement". The author also takes an in-depth look at how the changes have affected procurement activities and the developments that are likely over the coming years as the company expands its global production footprint. It takes in the brand's model, platform and production strategy and delves into the purchasing strategies at Mercedes with analysis of global purchasing , supplier selection, technology and quality expectations. This report is packed full of insight, data and analysis that will prove invaluable to those partnering or looking to work with one of the global automotive industries most highly regarded players
Mercedes-Benz Cars (MBC) is currently progressing through what is arguably the most comprehensive series of new model launches in the company’s extensive history. With the introduction of the MFA modular front-wheel drive platform system, the company has given itself the flexibility to launch a virtual sub-brand of smaller vehicles, including two models already in full series production, the new A-Class hatchback and B-Class tourer, and a car which has just entered production, the CLA saloon. The modular platform will also support future production of a crossover SUV, currently referred to as GLA, with the addition of a fifth model at a later date, possibly a CLA-based Shooting Brake, a smaller version of the CLS model of the same name launched in 2012.
As MBC continues to broaden its MFA model portfolio, the company has a series of other issues it must successfully address, including the launch of the new C- and S-Class models, respectively the best-selling and highest-margin cars in the OEM’s range. At the same time, the OEM is dealing with changes to the production network for the MFA models and the C-Class, while continuing to work on new in-car technologies that will maintain the brand’s position as an acknowledged leader in automotive innovation in terms of fuel economy and safety.
Mercedes-Benz has announced that it plans to become the best-selling premium brand in the world by 2020. While the introduction of these new models will undoubtedly push the OEM towards that goal, the company has never been under such pressure to both introduce this number of new models and maintain its world-renowned levels of quality. To successfully complete this growth phase, the OEM will rely on its internal expertise and its network of suppliers around the world.
This will be of particular relevance as Daimler looks to carry out its plan to increase the percentage of parts delivered from local suppliers, concentrating on those countries where the OEM has existing production facilities. How current and new suppliers perform will have a direct impact on the success of these new models, and also on the success of the first engine production plant outside Germany, scheduled to start delivering product to the Beijing Benz assembly line in late 2013.
How Mercedes-Benz Cars plans to deal with these on-going challenges, together with various other issues facing the company, is discussed in Supplying Mercedes-Benz. From the extended passenger car and LCV production network, through to the development of new technologies, the report outlines what the company plans to do to maintain its current vehicle quality levels while achieving its long-term objectives.
Table Of Contents
Supplying to Mercedes-Benz OVERVIEW Introduction Overall sales Financials
PRODUCT AND PLATFORM STRATEGY Strategy overview Major model programmes Platform strategy Major platforms Component sharing Volume planning
PRODUCTION STRATEGY Production strategy overview Manufacturing network GERMANY HUNGARY FRANCE ROMANIA CHINA UNITED STATES SOUTH AFRICA INDIA AND SOUTHERN ASIA Internal supply network Modularisation strategy Supplier parks Cluster of reference Strategies for manufacturing efficiency
SUPPLIER SELECTION Supply base development Major and strategic suppliers Supplier selection criteria Working with Daimler and Mercedes-Benz Cars
GLOBAL SOURCING Policy and plans EUROPE CHINA NORTH AMERICA
PRICING POLICY Cost reduction programmes and strategies Payment terms Raw material price management
QUALITY MANAGEMENT Quality level Quality management systems Integration into product development Management of sub-suppliers Supplier awards
TECHNOLOGY Technological positioning Areas of focus RandD spending RandD organisation Access to supplier technology Approach to alternative fuels, electrification and fuel cells Special vehicle development
INTERVIEW Michael Hannemann, Managing Director of Valmet Automotive
OEM-SUPPLIER SURVEY RESULTS Introduction to the SuRe Index Methodology Executive summary Profit potential Organization Trust Pursuit of excellence Outlook
SWOT ANALYSIS - MERCEDES-BENZ
FORWARD MODEL PROGRAMMES
MAJOR SUPPLIERS - MERCEDES-BENZ
LIST OF FIGURES AND TABLES
Figure 1: Global light vehicle sales, 2006-2012 (Source: IHS Automotive) Figure 2: The Smart Limited 1 (left) highlights the so-called Tridion safety cell in black Figure 3: The Mercedes-Benz Juiz de Fora plant in Minas Gerais state, Brazil Figure 4: Schematic of the new aeroacoustic wind tunnel at the Mercedes-Benz plant in Sindelfingen Figure 5: Dr. Dieter Zetsche with the Concept GLA at the Shanghai motor show Figure 6: Dr. Klaus Zehender, Head of Procurement Mercedes-Benz Cars and Vans (PMC), Daimler AG Figure 7: Early lapbelt testing at Mercedes-Benz Figure 8: Mercedes Benz âIntelligent Driveâ Assistance technologies Figure 9: Mercedes-Benz Research and Development India (MBRDI), in Whitefield, Bangalore Figure 10: The six-wheel drive Mercedes-Benz G63 AMG Figure 11: SuRe Index 2012 (Top) Figure 12: SuRe Index 2012 (Middle) Figure 13: SuRe Index 2012 (Bottom) Figure 14: Mercedes-Benz - Global assembly plant locations Figure 15: Mercedes-Benz - European assembly plant locations Figure 16: Major suppliers to Mercedes Benz
Table 1: Daimler AG financial data overview (Source: Mercedes-Benz, Reuters, Moody's, Fitch, Standard and Poor's) Table 2: 2007-2020 production figures for Mercedes-Benz vehicles included in Major model programmes Table 3: Forecast for top 10 Mercedes-Benz platforms (by global volumes) 2012 and 2018 Table 4: Mercedes-Benz global production sites (March 2013) Table 5: Global M-Class sales (by region) 2010-2016 Table 6: Delphi and TRW parts delivered for latest Mercedes-Benz vehicles (by supplier) Table 7: Daimler research and development expenditure Table 8: Mercedes-Benz plant locations with production forecast for 2013 Table 9: Mercedes-Benz - Forward Model Programme (by Global Nameplate)