Product:
The year 2020 is forecast to see a continued tangible decline in the order situation for our traditional products due to the continuing economic weakness from the second half of 2019 as well as the worldwide Corona crisis. In particular, our main conversion partner Mercedes is suffering under the changed market conditions and also declared at the current financial statement press conference that “orders are collapsing and market share in core markets is shrinking.“
This development naturally will also have a direct influence on order volume in our departments.
- Chassis modifications
- Roof lowering
- Vehicle construction and
- Paintwork
What’s more, Mercedes significantly adjusted conversion prices downwards
starting in November 2019. This resulted in competitor cut prices as a side effect,
which have led to distorted order volumes.
Independent of this, 2019 already showed a significant decline in orders – triggered by the unstable market situation – of only 721 vehicles compared to 887 vehicles in 2018.
This dramatic decline, which may significantly increase in 2020, makes it necessary to find new markets in the core area of our fields of activity.
Therefore, we will be aggressively adding specific conversions in the cab area with different customer groups to our portfolio, such as cab glazing for various applications and long product vehicles. We already have the corresponding experience for this, but we now have to optimize our processes so that the production and documentation of required parts are addressed systematically with external support. This is the only way to achieve considerable reductions in production time and this is the basis for our entry into systematic production and installation.
In the chassis area, we also have to consider new types of conversion issues, such as switching to right-hand drive and other requirements that come from this user segment.
Vehicle construction with both components of a semi-trailer and a body platform have continued to expand so that this can develop into a significant business segment in 2020 despite the confusing order situation up to this point.
Therefore, for the first time this year, bodies and, if necessary, even a trailer will be created without a specific customer order and marketed in a targeted manner with corresponding measures in order to enable us to react to market requirements in the short term.
This also includes equipping Plattformer Days in Karlsruhe in September with corresponding vehicles.
There, we can also present for the first time a verification of the permitted frictional coefficients as per VDI 2700 Sheet 14 and lashing point values as per DIN EN 12640.
This will certainly get our customer base and other interested parties to sit up and take notice.
We also need to begin an optimisation process for vehicle paintwork – to improve both earnings and output – which must include both the personnel situation as well as the daily output, if necessary, through the expansion of attendance times.
The first ideas on this topic have already come out and must now be implemented in a consistent manner.
Market outlook 2020
The market outlook has already been discussed intensively in the “Product” section.
It will certainly not be as predictable as has been the case in previous years. It is not just the explosive changes in the world economy that play a major role here, but also the still unforeseen consequences from the Coronavirus, which can lead to delivery difficulties in the globalized market.
Rheinau-Helmlingen, 01.03.2020
signed Gerd Körber, GF