The downturn in the global automotive industry will definitely affect standard product offerings, said John Sanderson, president and CEO of Siemens Automotive in North America.
Siemens is primarily an electronics and systems integrator. 'The pricing environment is very aggressive, but we have to find ways to reduce cost which do not destroy our margins,' said Sanderson.
Suppliers cannot continue to absorb price reductions without an immediate cost reduction as well. 'We have to find different ways to fundamentally change that cost structure,' said Sanderson.
Sanderson said cost reduction should be designed into new vehicles using modularity, systems, common architectures, cross-platform strategies, and cross-powertrain strategies.
He said: 'We still need to design and develop the next generation of technology and we have to fund it from the current business.'
Sanderson expects double-digit growth this year, despite a downturn. He expects growth from tire pressure monitoring systems and body electronics, as well as multimedia, integrated cockpit and driver information systems.