On 10 and 11 October, the IFEMA exhibition centre in Madrid hosted the second edition of Automotive Manufacturing Meetings Madrid. An event, organised by ABE (Advanced Business Events) and SERNAUTO (Spanish Association of Automotive Suppliers), which brings together actors from many facets of the sector’s supply chain in a B2B meeting format. From the point of view of a company like ORAN, it was an interesting opportunity to discover and connect with new opportunities and ideas that we did not want to miss.
Institutional opening
The opening ceremony laid the foundations for the exchange of ideas and perspectives that would take place throughout the rest of the event. Francisco J. Riberas, President of SERNAUTO was the first to address the attendees, who commented on the competitiveness of the automotive sector in Spain, highlighting the work of component manufacturers, who contribute 75% of the value of the vehicle.
The institutional opening ended with the participation of Héctor Gómez, Acting Minister of Industry, Trade and Tourism, who highlighted the budget allocation that feeds the PERTES VEC.
Present and future of the sector
Special mention deserves, from our point of view, the report presented by Manuel Díaz and Álvaro Cuevas of PWC, entitled “The competitiveness of the Spanish components industry: Main challenges”. Prepared in collaboration with SERNAUTO, it aggregates the results obtained from the survey conducted in July/August 2023 to automotive component manufacturers.
This study provided valuable insights that will undoubtedly guide the sector’s strategic decisions in the near future.
To close their presentation, PWC offered the three main conclusions of the report:
1. The importance of company size. The 20th company in the global TOP20 today has a turnover of 16 billion euros, whereas in 2000, to enter the TOP20, a turnover of 3.4 billion euros was required. This growth in turnover is due to the phenomenon of concentration fuelled by mergers and acquisitions (more than 400 operations were carried out in 2022).
2. The need to focus on profitability and competitive advantage. The macro context demands high levels of investment to realise the necessary transformation/evolution, making profitability imperative (if it ever ceased to be so). A rationalisation of R&D&I efforts aimed at supporting profitability and enhancing competitive advantage is therefore necessary.
3. The transformation of the sector will accelerate. The entry of new players is changing the dynamics of the sector and decisions arising from OEMs’ electrification or hybridisation strategies will require agility and adaptability.
Javier Quesada from TEKNIA and Gianmarco Brunetti from Jaguar-Land Rover also addressed the audience. TEKNIA spoke about its expanded strategic focus. Beyond automotive, TEKNIA is becoming a manufacturer of components for mobility, supporting the various alternatives for electric urban mobility. JLR spoke about the principles that guide its strategy focused on excellence in customer experience.
The round table on the transformation of the automotive supply chain, with the participation of Javier Ealo, Industrial Consultancy at Bosch; Sergio García, Director of Industry 4. 0 at Gestamp; Alberto de los Ojos Moral, General Manager of HORSE Engines (Renault Group); Markus Haupt, Vice President of Production and Logistics at SEAT, and Manuel Diaz Delgado, Partner at PwC, as moderator, logically focused on basic topics such as digitalisation, Industry 4.0 and the reimagination of the supply chain. The points of view of both OEM’s and Tier 1’s were presented, as well as changes at a strategic level, disparity in profitability or technological sovereignty, among others.
Contacts, collaboration and innovation
With over 600 participants, 130 companies and delegations from 13 different countries, networking and business opportunities were everywhere. At ORAN, we had the pleasure to meet face-to-face again with well-known partners and build relationships with potential partners and customers. Especially interesting considering the not so distant post-covid reality that already seems to be completely behind us.
Part of your team, part of the future
ORAN’s contribution to the fair was mainly aimed at presenting our comprehensive service model for automotive component projects, highlighting the importance of bringing together the stamping, welding, assembly and cataphoresis processes under a single roof to optimise costs, minimise environmental impact and improve communication with customers and suppliers. This philosophy is the essence of our work: to offer efficient and high quality solutions that, in short, make us an adaptive and decisive partner.
Final thoughts
The automotive sector, as we saw at Automotive Meetings Madrid, is in the midst of a transformation and is going through a time of great uncertainty. Innovation, technology and collaboration are essential to stay ahead of the curve, always seeking to deliver the greatest value in a cost-effective way. At ORAN, we return to Santander equipped with new perspectives, ideas and contacts that will allow us to approach the challenges and opportunities that the future holds with a broader vision.
