Managing Director Ford of Romania
ATTILA SZABO
THE GOOD NEWS
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• 56 markets – full EMEA
• €200 million investment
• +1,700 jobs – total 4 500
• €1.2bn+ invested since 2008
Single source for Europe
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2007
SUV & Crossover Sales
8%
2016
26%
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34%by 2020
Source: LMC Automotive
Millennials: next wave of SUV buyers
24%of adult population
Ages 17 - 34
60% will purchase in 2018
1 in 4considering SUV
Evolution
Source: JATO
2010 2012 2013 2014 2015 2016 2017 2018 2019 20202011
0%
5%
10%
15%
0
500
1,000
1,500
2,000
2,500
Share (%)
Reg. (k)
Forecast
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THE CHALLENGE
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Inbound Outbound logistics flow – INFRASTRUCTURE?
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Inbound logistics – 3.5hrs opportunity
Cologne (DE) – Nadlac (RO):
Total distance = 1365 km
Avg. speed = 75 km/hr.
Nadlac (RO) – Craiova (RO):
Total distance = 445 km
Avg. speed = 48 km/hr.
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Inbound logistics – motorway development is key
Craiova - PitestiLugoj -Calafat Craiova-CalafatCraiova-Bucharest
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Inbound logistics – express road can add 2.5hrs saving
Craiova Bals
Slatina
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Outbond logistics – 15hrs potential reduction in transit time
Duisburg (DE) – Curtici (RO):
Total distance = 1560 km
Avg. speed = 50 km/hr.
Nadlac (RO) – Craiova (RO):
Total distance = 450 km
Avg. speed = 15 km/hr.
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Outbond logistics – rail network exist, but need rehabilitation
Curtici-TimisoaraTimisoara-CraiovaCraiova-CalafatCraiova-Bucharest-ConstantaSimeria-Filiasi
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...MORE GOOD NEWS...
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Industry
2017
128 000
2016
118 000
2018
New Vehicle Industry -- Registrations
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SEGMENTATION 2017 VS 2016
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xxxxxx
9.0%
Ford of Romania performance 2017
Cars: 7.4%
CV: 15.9%
+0.9ppts vs 2016
#1 foreign brand!
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...BUT POLLUTION OVERSHADOW
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Industry New Regs vs SH Import Regs
70 000 85 000 100 000118 000 128 000
267 000 266 000299 000
351 000
576 000
2013 2014 2015 2016 2017
1:3.8
1:3.11:3.0 1:3.0
1:4.5
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USED CAR IMPORT AGING....EVEN FURTHER...SUB-STG4 EMISSION!
2017 201623
DO WE CARE OF ROMANIANS’ HEALTH? -- MANUFACTURERS DO
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DO WE CARE OF ROMANIANS’ HEALTH? – NEED MORE ACTION
• ENVIRONMENTAL STAMP?
• LIMIT SH IMPORT TO 1 UNIT/PERSON A YEAR?
• PROPER TAXATION?
• CONTROL AND PENALTY ON MILAGE REWIND?
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FORD MOTOR COMPANY’S ANNOUNCEMENT IN DETROIT
• $ 11 billion investment
in electrified vehicles by 2022
• 40 products: 16 BEV and 24 PHEV
• Keep moving engineering spend
from cars to CV/SUV/Crossover
• ...and from Internal Combustion
engine to Electric vehicles
• ZOTYE JV to further leverage 26