Abstract
Now that the majority of consumers regard HVAC as a 'must-have' in most
segments in the major markets, several drivers now influence both OEM sourcing
and supplier development as well as production approaches, some of them
conflicting.
As a result, suppliers are constantly under pressure to deliver extra
functionality and reduce the price of their components and systems. This is
especially true in smaller car segments. The consolidated nature of the
sector, with five global players chasing a stagnating amount of business,
means that small differences in price or technology can mean the difference
between winning and losing new business.
Overarching those concerns are the ongoing drive, in all major markets, to
improve fuel consumption and reduce emissions. The European Union has already
taken action to improve this situation, and other markets may follow.
There is no doubt that CO2 air conditioning is a "greener" solution than
current technology, and that it will in most forms offer superior performance.
However, the expectation is that the first applications of the new technology
could cost as much as 30% more than current systems.
To further complicate the picture, it appears as of the first quarter of 2006
that North America will not adopt R744 in the near future. Therefore most
suppliers can expect to have to conduct business on two fronts - carbon
dioxide for Europe and Japan, HFCs in North America. And the cost pressures in
the sector are not expected to ease.
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