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The PFA and the DGE nominated SNECI to support automotive companies for recovery

The PFA And The DGE Nominated SNECI To Support Automotive Companies For Recovery

SNECI has been mandated by the PFA and the DGE to accompany and support automotive through the Automotive Support Plan

A particular context with the COVID-19 crisis:

The Covid crisis in March 2019 led to a collapse of the automotive market in April 2020, resulting in a drop of -72% in March 2020 and a French market plunging by more than a third in Q1 2020 with a decline of -34%.

All countries have been affected by this health crisis, Germany with -20% in Q1 2020, Italy with a decline of -84% in March 2020 and Spain -69.3%. These are unprecedented figures for the sector, a decline that has endangered the industry and many companies, including manufacturers, equipment suppliers, distributors and dealers.

To avoid the bankruptcy of many companies and the collapse of the market, the French government announced in May 2020 an unprecedented recovery plan to support the automotive industry.

“The health crisis has brought the French automotive industry to a massive and brutal halt. It is a part of our economy, it represents thousands of jobs. Our support will be massively increased”, said Emmanuel Macron, the President of the French Republic.

Luc Chatel, President of the PFA, added: “The challenge is to maintain an industrial fabric in France today, and to ensure that our country is able to be one of the leaders in the vehicle of the future tomorrow.

The automotive sector is currently undergoing major changes, both technologically and in terms of mobility uses, as part of the environmental agenda and the digital revolution.

The year 2020 has been marked by a very significant acceleration of these transformations, under the dual effect of structural changes linked in particular to regulatory deadlines and a downturn in the economy, aggravated by the Covid-19 crisis.

Although that for 2021 the recovery seems to be starting within the first 8 months of the year + 12.83% of registrations up for new vehicles, + 23.23% for light commercial vehicles, some companies are doing well, possibly thanks to a better agility which is not obvious for a certain number of ETI and SME.

Whether it is the regulations, the Covid crisis, climate change, etc., all of these factors have had a strong impact on the industrial field and employment, which must be anticipated in order to better prepare the future.

In order to help companies of the automotive sector to adjust to this particularly difficult context and to guide them in the mobilization of the support mechanisms available through the Automobile Support Plan, based on their own needs, the PFA and the DGE, supported by the government, have set up an Automobile Support plan through the expertise of certain partners such as SNECI

This Automotive Support Plan should enable companies in the sector to respond to various changes:

Structural changes:

  • Environmental and regulatory: change of engine towards electric and hybrid and decrease of diesel.
  • Digital: technological developments for a more connected and autonomous vehicle.
  • Societal: new forms of mobility – Green mobility

Cyclical changes

  • After years of growth in the automotive market, the year 2020 will have been complicated for the sector
  • Strong growth expected in 2021

All of these factors have a significant impact on the industrial field and employment. A good number of manufacturers have already anticipated these changes, but a certain number of companies (ETIs and SMEs) are still in difficulty and sometimes even in a situation of fragility or survival.

 

The AUTOMOTIVE SUPPORT PLAN for a green and competitive industry includes two types of support that can be combined:

Definition of a diversification and restructuring strategy with a detailed plan.

  • Analysis of the company’s strategy and strategic resources
  • Identification of possible diversification/restructuring paths
  • Definition and elaboration of a detailed action plan to ensure the necessary reconversions, both industrially, commercially and in terms of human resources: diversification of the customer and export portfolio, diversification of the product range within the automotive sector or within other sectors, or, failing that, restructuring or even reintegration of employees

Customized support for the implementation of the action plan:

  • Support for the transformation project drawn up beforehand

 

How is SNECI committed to supporting the professionals of the Automotive Industry?

Phase A: Strategic analysis and development of an action plan:

We start with a preliminary interview with the company’s managers over half a day, in order to gather their point of view, then we analyze the company from two aspects:

  • The strategic and commercial part, thanks to our experts in Business Development and in Strategy and Market Research, include few days of analysis, on site or remotely and followed by an action plan
  • The Industrial Performance part, where we use our I.S.A.® supplier evaluation tool, focused on Quality, Manufacturing and Supply Chain aspects, includes as well few days of analysis on site, followed by an action plan

The mission ends with a report followed by a discussion with the manager or the Management Committee. The total estimated duration of the mission is 11 days on average, or 9 to 12 days depending on the size of the companies concerned and the diversity of their markets and products.

 

Details on our strategy and business development assessment tool:

We organize meetings with the Managing Director, Technical Director, Sales Director, R&D and project team to get a comprehensive overview of the company: current strategy, organization, customers, strengths, weaknesses and vision.

We also analyze the market data available to the company, which we complement with our own market knowledge, based on our 70 years of experience and 450 experts around the world.

This allows us to finalize a SWOT (Strengths, Weaknesses, Opportunities, Threats) diagnosis, together with an assessment of the sales organization, including a review of skills and gap analysis, proposals for a sales strategy, product strategy and priority customer targets.

Presentation of our ISA® Industrial Performance Assessment Tool:

Our assessment tool, which covers the different aspects of a business, is based on SNECI’s experience of automotive requirements and our own assessment methodologies.

Our tool assesses 5 areas:

  1. R&D organization
  2. Sustainable development
  3. Quality & Manufacturing
  4. Supply Chain Management
  5. Finance & Administration

 

Phase B: Support for the implementation of the action plan:

In this phase, support is:

  • either based on of the action plan detailed in phase A,
  • or, for companies that have already received support and defined an action plan, on the basis of an already established transformation project.

 

Support for implementation may include:

  • Improving industrial performance (improving quality, reducing scrap rates, reducing cycle times, reducing the area used, reducing purchases, etc.)
  • Assistance in promoting the diversification project to potential partners
  • Assistance with the certification process as part of a supplier referencing process (cf. the requirements of the aeronautics sector)
  • Assistance in restructuring the company, if necessary

 

Why asking SNECI’s expertise and teams as part of the AUTOMOBILE SUPPORT PLAN?

SNECI has nearly 70 years of experience with worldwide expertise through our 450 employees in 45 countries.

SNECI is a family-run services and consulting company, so our missions are not limited to assessments and the definition of action plans, but our strength lies in the fact that our experts are able to support and assist equipment manufacturers’ and constructors’ sites to deploy the action plans in an operational manner.

SNECI works with experts who have extensive experience in business development, strategic analysis, but also in industrial performance, lean manufacturing, problem solving, etc.

 

SNECI’s experts are located all over the world to ensure a relevant local approach.

  • SNECI is a specialist automotive expert in improving commercial and industrial performance
  • SNECI is able to draw on its international network to enable SMEs to develop not only in France but also internationally
  • SNECI has already advised more than a hundred equipment manufacturers of all sizes and all over the world on their strategic and commercial development, both to develop new products and to win new customers (manufacturers or equipment manufacturers).
  • SNECI has carried out more than 500 supplier assessments worldwide.
  • SNECI is certified by STELLANTIS to carry out supplier entry panel audits (NSA), worldwide.
  • SNECI has developed its own standard, the I.S.A.®, which covers the various aspects of a company.
  • SNECI accompanies its clients towards the green mobility (electric vehicles, batteries…) of tomorrow by supporting innovation but also by reinforcing the competitiveness of both French and foreign manufacturers.

 

If you wish to benefit from SNECI’s support through the  AUTOMOBILE SUPPORT PLAN, do not hesitate to contact us to validate that your company meets the criteria for this plan.

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