Standard Motor Products’ Post

So this happened: M&A in Automotive Aftermarket!   Earlier this week, Standard Motor Products acquired Nissens, a European manufacturer of HVAC components and supplier to the automotive aftermarket. The acquisition aims to address multiple aspects in line with the current state of the market:   - Portfolio diversification: This move helps dilute and distribute the risk in the market for an aftermarket supplier. SMP's heavy reliance on the ICE vehicle population, particularly the 'Vehicle Control' product line, which constitutes 54% of the overall revenues (Source: Standard Motor Products), will likely be balanced out by the acquisition, ensuring revenue contribution from different product categories.   - Expansion to immune product categories: Nissens supplies HVAC solutions primarily, which are relevant across vehicle types. SMP, leveraging its market-leading brand 'Four Seasons' in the NA market, could further gain share in the European market with the Nissens brand, particularly in light of electrification trends. Case in point, currently Europe constitutes only 21% of the revenues for SMP, while over 80% of sales for Nissens are from Europe (Source: Standard Motor Products)   - Relevance to EVs: Nissens' portfolio includes products like powertrain cooling systems, enhancing SMP's relevance beyond the legacy ICE share of the vehicle population. With Europe boasting the biggest EV car parc outside China, SMP's product line expansion positions it well in front of a growing addressable market.   - Diversification for wider market targeting: As the European and Asian brands in the vehicle population diversify, SMP can target a broader market with an expanded list of SKUs.   #aftermarket #automotive #acquisition #aftersales #enginecooling #ICE

As part of measures outlined in February, on 26 March 2024 Continental announced the planned closure of its Wetzlar and Schwalbach sites in Germany. Both belong to the company’s non-tyre Automotive group sector. The company will transfer the activities currently conducted at both sites to other Continental Automotive plants in Germany, relocating around 1,100 jobs to its facilities in Frankfurt and Babenhausen. Continental will cut a further 1,200 or so jobs. Following the anticipated conclusion of this process by the end of 2025, Continental will sell the Wetzlar and Schwalbach sites. Improving cost structure, strengthening R&D cooperation Continental describes these measures as a merger of the sites and says that by doing so, the Automotive group sector is “leveraging synergies, simplifying work processes, shortening development times and reducing costs through better utilisation of the existing infrastructure.” Philipp von Hirschheydt, head of Automotive, states: “With these measures, we are improving our cost structure and, in particular, strengthening cooperation in research and development. “In the future, we will make even better use of our strengths in the field of vehicle software and architecture at the competence centre in Frankfurt (which is now being built) and thus bring our technologies and solutions to market maturity more quickly.” Continental’s Automotive business sector plans to reduce the share of research and development expenditure (R&D ratio) to less than ten per cent of sales in 2028. By streamlining its administrative structures worldwide, the Automotive sector intends to reduce costs by 400 million euros per year. The full scope is to be achieved from 2025. https://lnkd.in/ezECHUXq

As part of measures outlined in February, on 26 March 2024 Continental announced the planned closure of its Wetzlar and Schwalbach sites in Germany. Both belong to the company’s non-tyre Automotive group sector. The company will transfer the activities currently conducted at both sites to other Continental Automotive plants in Germany, relocating around 1,100 jobs to its facilities in Frankfurt and Babenhausen. Continental will cut a further 1,200 or so jobs. Following the anticipated conclusion of this process by the end of 2025, Continental will sell the Wetzlar and Schwalbach sites. Improving cost structure, strengthening R&D cooperation Continental describes these measures as a merger of the sites and says that by doing so, the Automotive group sector is “leveraging synergies, simplifying work processes, shortening development times and reducing costs through better utilisation of the existing infrastructure.” Philipp von Hirschheydt, head of Automotive, states: “With these measures, we are improving our cost structure and, in particular, strengthening cooperation in research and development. “In the future, we will make even better use of our strengths in the field of vehicle software and architecture at the competence centre in Frankfurt (which is now being built) and thus bring our technologies and solutions to market maturity more quickly.” Continental’s Automotive business sector plans to reduce the share of research and development expenditure (R&D ratio) to less than ten per cent of sales in 2028. By streamlining its administrative structures worldwide, the Automotive sector intends to reduce costs by 400 million euros per year. The full scope is to be achieved from 2025. https://lnkd.in/eJWgGmrX

European Automotive Logistics Sector Expands with Acquisition Read The News: https://lnkd.in/gB7HDmRc #ICTTMNews #SupplyChainNews #AutomotiveLogistics #EuropeanExpansion #SupplyChainGrowth #LogisticsAcquisition #BusinessExpansion

European Automotive Logistics Sector Expands with Acquisition Read The News: https://lnkd.in/gB7HDmRc #ICTTMNews #SupplyChainNews #AutomotiveLogistics #EuropeanExpansion #SupplyChainGrowth #LogisticsAcquisition #BusinessExpansion

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Next step towards the expansion of the Aftermarket Business

General Motors Honors Top Suppliers of 2023 at Prestigious Awards Event General Motors (GM) has once again celebrated excellence in its supply chain by recognizing the outstanding achievements of its top global suppliers during the annual Supplier of the Year recognition event. This year’s ceremony saw a total of 86 suppliers being honored with the coveted Supplier of the Year award, alongside an additional eight Overdrive Awards bestowed upon suppliers who went above and beyond in their contributions. Jeff Morrison, GM’s Vice President of Global Purchasing and Supply Chain, expressed gratitude for the invaluable partnership with these top suppliers, acknowledging their significant role in GM’s ongoing transformation. “Together, we’re pushing boundaries, […] - https://lnkd.in/dXc_dXrR #automotive #evs #ev #electricmobility #emobility #ebikes #fleets #evfleet #evnews #autonews #electricvehicles #electricvehicle #automotiveindustry #automotivejobs #cleantech #cleanenergy #hydrogen #lithium #evbattery #sustainability #climatechange #award #generalmotors #miami #northamerica #unitedstates

Let us discuss about: PROCUREMENT IN THE ERA OF UNCERTAINTIES Automotive Masterminds - The new Automotive Conference with Robert Suvak , Nicolas Neubauer , Popp Volker and me.

📣 Did You Know? Mexico Claims Top Three Spot in U.S. Auto Parts Supply Chain As 2023 came to a close, Mexico emerged as a powerhouse, contributing a remarkable 43% to the auto parts acquired by the United States. This achievement firmly places Mexico among the top three suppliers in the realm of automotive supply chains. The country's significant role in the provision of auto parts underscores its growing influence in the industry and its pivotal position in supporting the automotive needs of the United States. https://lnkd.in/eq8ZtyrT