This includes exceptions among which Valeo

A recent study by Hackett-REL indicates that the first seventeen European OEMs have need of Fund turnover of EUR 7.5 billion. This figure reflects the BFR in its three components are the client's payment times, stocks and payments providers. This study also followed the first twenty American suppliers for which the same problem translates a BFR of $ 8 million.

On average, U.S. suppliers are more efficient than their European counterparts with a need for funds less than 45. But this comparison is somewhat skewed by very disparate situations of American manufacturers. Note that they rely on a generally stronger industrial performance than that of the European culture. "Some manufacturers are in a particular situation," admits Marc Loneux, financial analyst at Hackett-REL.

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At Visteon, the BFR is spent 50 days in 2004 to 40 days in 2005 due to an acceleration of the terms of payment of Ford declined from 33 to 22 days. On the general situation of American manufacturers, Steve Payne, Global Practice Leader of Hackett - REL, was surprised that this problem is not better treated: "even if OEMs reorganization must deal with the issue of wage costs, they spend next money in their accounts and better use would have a significant impact on their accounts of result." "It is difficult to understand that companies ignore these amounts. And, even more than Marc Loneux: "these cash obtained through optimization of methods of payment, performance increased purchases and better supply chain management is the cheapest source of capital for businesses".

European OEMs, sometimes handicapped by delays in payment exaggerated, such as those performed by French manufacturers, so display an average performance less good than that of the Americans. This includes exceptions, among which Valeo. The OEM needs of "23 days of BFR, then the mean is 59 days in Europe".

Valeo "best in class".

This performance comes from including 69 days for the payment of suppliers and an excellent industrial performance reflected in 24 days of stocks, while the average European OEMs is 46 days. On this test, Valeo is clearly in the best in the sector, because only 25 of the equipment suppliers are within 31 days of stocks. "They are best in class" indicates Marc Loneux. The study of these criteria of BFR shows that Faurecia and Plastic Omnium are also well placed, particularly by the deadline for settlement of their suppliers.

In total, the study estimates that more than 14 billion euros of cash are buried in these working capital needs. Yet, according to Marc Loneux, each OEM is clearly capable of performance, including by improving its operational performance, which limits the inventory process, but also by upstream logistics optimization. Indeed, year after year, the performance of the OEMs on this criterion of the BFR improves: need them to balance the possible derives from deadlines for payment of manufacturers by the spacing of the rules of the subcontractors and the decline in stocks in domestic. From 2004 to 2005, Autoliv has lowered its BFR 6, 7 Bosch and Valeo of 5. The trend towards improvement is General, but all sectors, companies can improve their BFR 3 to 4 per year. Hackett-REL calculated that the potential of lowering of the operational cost on the HRW is $ 480 million for the whole European OEMs and 958 million for the Americans.