Automotive OEMs Global Manufacturing Facility Investment Strategies, 2010–2022

6 OEMs Target Nearly $275 Billion Investments Globally by 2022, Including 26% Share in North American Manufacturing Facilities

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The need to optimize manufacturing investments, better utilization of production facilities, and improving production plant performance are becoming paramount, as they enable manufacturers to start delivering high volumes of vehicles with a variety of models that are preferred in the market and they will also open the door to lucrative revenue streams. Focused regional investment, effective utilization of production facilities and significant spending on next-generation technologies will play a key role in Original Equipment Manufacturers (OEMs) achieving their present objective of building cars that can change the form and function, compared with what is being offered now.

A majority of spending by OEMs is expected in manufacturing and assembly with minor spending increases on technologies. Further, increased investment on technologies would help auto makers transform the processes and systems of factories, which will result in improved plant productivity to compete against rivals and also help maintain an edge with customers.

However, identifying the right technology, assessing the value potential and risk of investing in the technologies become crucial for return on investment. Apart from this, auto manufacturers are also focusing on rightsizing their existing production plants to bring down the capital cost in operating their facilities.

In the current scenario, automakers are spending higher on manufacturing and assembly to increase capacity and assemble higher volumes of existing products, while replacing old equipment continues to be a priority for the manufacturers and the same industry trend can be expected to continue in the coming years.

With an objective to channelize the investments in the regions that provide higher capital gains and with a clear long-term strategy to strengthen the North American operations, leading OEMs have started to limit their investments outside North America and a notable number of manufacturers are planning to increase US-based production significantly in the next two years.

Key Issues Addressed

  • What technologies are the primary focus for original equipment manufacturers while investing in manufacturing plants?
  • Why have the selected OEMs pledged $275 billion for manufacturing investments between 2010 and 2022
  • What is the correlation between the manufacturing investments targeted and growth expectations?
  • Why are future facility investments divergent among the benchmarked OEMs, with Ford and GM being the only automakers forecasting a similar investment strategy as 2010–2014?
  • Mexico was one of the key regions for many OEMs to invest for the long term. Where does it stand today?

Table of Contents

Executive SummaryExecutive Summary—Major Growth OpportunitiesSummary—Select OEMs Manufacturing Facilities Investment in Key TechnologySummary—Select PV OEMs’ Investment in Manufacturing in Key TechnologiesSummary—2020 Comparison of OEMs Future Factory Capacity and UtilizationResearch Scope, Objectives, and MethodologyResearch Scope Research Aims and ObjectivesKey Questions this Study will Answer Research Methodology SegmentationTechnology SegmentationOEMs Investment in Global Manufacturing Facilities by Key TechnologySelect OEMs Manufacturing Facilities Investment in Key TechnologyFord Motor Company—Investment in Global Manufacturing Facilities by Key TechnologyGM—Investment in Global Manufacturing Facilities by Key TechnologyVolkswagen—Investment in Global Manufacturing Facilities by Key TechnologyBMW—Investment in Global Manufacturing Facilities by Key TechnologyToyota—Investment in Global Manufacturing Facilities by Key TechnologyNissan—Investment in Global Manufacturing Facilities by Key TechnologyOEMs Year-on-year Investment in Global Manufacturing FacilitiesFord Motor—Year-on-year Investment in Global Manufacturing FacilitiesGM—Year-on-year Investment in Global Manufacturing FacilitiesVolkswagen—Year-on-year Investment in Global Manufacturing FacilitiesBMW—Year-on-year Investment in Global Manufacturing FacilitiesToyota—Year-on-year Investment in Global Manufacturing FacilitiesNissan—Year-on-year Investment in Global Manufacturing FacilitiesGlobal Versus North America Focused Technology Investments by OEMs2015 OEM Comparison of Global and North America Plant InvestmentSummary—2020 OEM Comparison of Global Vs. North America Plant InvestmentFord Motor Company—Global Vs. North America Factory Investments General Motors—Global Vs. North America Factory Investments VW—Global Vs. North America Factory Investments BMW—Global Vs. North America Factory Investments Toyota Motor Company—Global Versus North America Factory Investments Nissan—Global Versus North America Factory Investments Global OEMs Factory Capacity and Utilization Trends2015 Comparison of OEMs Future Factory Capacity and Utilization2020 Comparison of OEMs Future Factory Capacity and UtilizationFord Motor Company Factory Capacity and Utilization TrendsGeneral Motors Factory Capacity and Utilization TrendsVW Motor Company—Factory Capacity and Utilization TrendsBMW—Factory Capacity and Utilization TrendsToyota Motor Company—Factory Capacity and Utilization TrendsNissan Motor Company—Factory Capacity and Utilization TrendsGrowth Opportunities and Companies to ActionGrowth Opportunity—Manufacturing Facility Investments Strategic Imperatives for Success and GrowthManufacturing Investments—5 Major Growth OpportunitiesKey Conclusions and Future OutlookThe Last Word—3 Big PredictionsLegal DisclaimerAppendixList of ExhibitsList of Exhibits (continued)List of Exhibits (continued)Market Engineering Methodology





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