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Q: Automotive market research ( Answered,   0 Comments )
Subject: Automotive market research
Category: Business and Money
Asked by: rswartz-ga
List Price: $75.00
Posted: 16 Aug 2004 14:00 PDT
Expires: 15 Sep 2004 14:00 PDT
Question ID: 388675
What is the quantity of navigation systems sold by Harman Becker in
the United States
Subject: Re: Automotive market research
Answered By: adiloren-ga on 16 Aug 2004 23:48 PDT
Hi, thank you for the question.

Here are some recent U.S. market for navigation systems, specifically
from Harman Becker and their parent company Harman International.
Please let me know if you need any clarification of this response.


United States:  2003 Sales  645.5 Million  29% of total market
Total: 2,228.5 Million
From: Hoover's Company Records - In-depth Records

Harman International Industries, Incorporated  

Standard & Poor's Corporate Descriptions plus News
July 31, 2004

"Sales to DaimlerChrysler and BMW accounted for 26% and 10%,
respectively, of Harman's consolidated net sales for FY 03"

Navigation system sales in the United States
January 8, 2004

"According to the Consumer Electronic Association's (CEA) year-to-date
sales for aftermarket navigation products through October, the market
reached $32.8 million, marking a 33 percent increase over the same
period in 2002. For the month of October, sales increased 145 percent
to $4.7 million."

Harman "Infotainment' Systems Accelerating Audio Firm's Profit
Investor's Business Daily
March 29, 2004 

<<Harman International's infotainment systems make it into only a
small fraction of those vehicles for now. But that number could grow
quickly the next few years: from 325,000 at the end of last fiscal
year to 1.5 million three years from now.>>

<<"Some of it is geographic, some cultural, some an accident," said
Chairman Sid Harman, explaining upscale European carmakers' response
to its infotainment systems. "With carmakers in general, the early
adopters have over the years been largely the Porsches and BMWs, and
if you have a group of clients with whom you've already done business,
you're more likely to do more business in the future.

"The U.S. in some ways is laid out geographically as a less natural
place to reach out for complex navigation systems. In the States when
you go for a drive, you're likely to go from the office to the
suburbs. In Europe you may go from one nation to another, where there
are different geographic systems, different radio systems. There's a
more immediate utility in Europe than in the U.S."

Despite many nations' slow adoption, the firm has issued lofty growth
forecasts, sparked largely by infotainment systems. It's endorsed a
25% profit growth rate for the next three to four years, on annual
sales growth of 12% to 15%.">>

Integrated Navigation Systems-- a $13 billion market
Business Wire
June 7, 2004 

"The ratings on Washington, D.C.-based Harman International Industries
Inc. reflect its well-recognized brand names in audio products, such
as Harman Kardon, JBL, and Infinity; its leading market positions in
the branded automotive audio and professional audio markets;
geographic diversity; and moderate financial policy. In addition,
vertically integrated manufacturing and a commitment to R&D protect
its market position. Still, the firm's operating segments are highly
competitive and subject to technology risk.

Harman is a global designer, manufacturer, and marketer of
high-quality audio products for the consumer market, which includes
original equipment manufacturers (OEM) and the professional market.
The company produces what it refers to as infotainment systems for the
OEM automotive market: electronics that integrate audio, Internet, and
navigation features for luxury cars. These systems offer a significant
growth opportunity, potentially a $13 billion market in the medium
term. Harman continues to penetrate this market and has received
contracts for branded audio and infotainment systems from
DaimlerChrysler AG, Toyota Motor Corp., BMW AG, Mitsubishi Motors
Corp., Jaguar PLC, and Audi AG. The firm also designs and manufactures
branded audio systems for computer manufacturers' personal computer
product lines, as well as for automobile audio/navigation systems,
providing more diversity to its earnings stream. As the developer of
the key systems architecture, Harman enjoys technological leadership
in the OEM automotive segment. The company's OEM products command
higher margins and faster inventory turns than its historical consumer
and professional audio businesses."

Business Week Online
February 19, 2004

"We believe our growth projections could be conservative if Harman can
expand beyond its stronghold in the European luxury-car market, and
gain a larger presence with North American and Asian manufacturers,
especially the volume-driven OEMs. We are encouraged by Harman's
integration of its RB4 system in the Dodge Ram pickup and by the
planned rollout of its equipment in General Motors' (GM) Buick and
Ford's (F) Mercury models in coming years."

Investor's Business Daily
December 15, 2003

"That's exactly what Harman is doing with its automotive infotainment
systems, a market it dominates. These systems are capable of playing
music and DVD movies as well as providing car navigation, wireless
Internet and other information services.

Harman is working now to increase the functionality of its systems,
adding such things as voice activation and diagnostics, says Sydney
Harman, the company's executive chairman.

Harman eventually wants to move beyond the luxury car market to
provide systems for less expensive cars, he says. It charges its
automotive customers, including Audi, BMW, Mercedes and Porsche, about
$1,200 for one of its systems. The price would have to be 40%-60% less
to be affordable for mainstream cars, he says.

Harman also is looking to take the technology it's developed for the
automotive market and apply it to "a whole new era of home consumer
products," he said."

Tele Atlas provides digital maps for Becker navigation systems
October 21, 2002

"Meeting the direct request of the car manufacturers, we are now
making Tele Atlas data available for the Becker system, and we are
looking forward to extending our cooperation into other markets, such
as North America.? Dr. Erich Geiger, Chief Technology Officer of
Harman International Industries and President of Harman Becker
Automotive Systems, commented: ?By cooperating with Tele Atlas, we are
expanding our range and improving our service towards our customers.
We are sure that everybody will profit from this agreement: Harman as
a leading provider of navigation systems, Tele Atlas with its accurate
and up-to-date maps, our retailers and last but not least the people
who use our navigation systems."
"In Strategy Analytics? (SA) view the factory fitted market for
in-vehicle navigation systems shipments is expected to increase from
around 3.1M units shipped in 2002 to 6.5M shipments by 2008,
representing a CAGR of 13% p.a."

Search Strategy:
Lexis Nexis Business search

Request for Answer Clarification by rswartz-ga on 17 Aug 2004 10:09 PDT
The material you provided is helpful.  However it does not get to
heart of the question.  First it provides no no breakdown between
navigation and audio systems, and further it does not provide a
breadown of US and foreign sales.

Clarification of Answer by adiloren-ga on 17 Aug 2004 13:08 PDT
Unfortunately, the information available is somewhat limited. I
searched through detailed records and disclosures for more specific
information, including many paid company information databases.

The first part is meant to establish an idea of how much of Harman's
sales are in the United States, about 29% of the total sales. The
later information shows that their navigation systems are becoming
largely integrated with their audio systems and they are attempting to
target the U.S. market with this technology. As of now, the Japanese
and European markets are larger, however.

I Understand that this information may not be as specific as you may
like. I will search for more detailed information on the navigation
systems and their sale in the U.S.

Any guidence you can give me on what type of information is most
valuable to you would be helpful.


Request for Answer Clarification by rswartz-ga on 18 Aug 2004 18:44 PDT
The areas I am interested in are what cars and models have Harman
Becker navigation systems.  It is of value to find out sales of those
models and from that perhaps an estimate can be made of the number of
units sold.

It is also valuable to understand whether the navigation system is
standard equipment or an option on the particular models.

There are generally good published sales figures for most cars broken down by model.

Clarification of Answer by adiloren-ga on 18 Aug 2004 19:51 PDT
Thanks, I'll get to work on that.


Clarification of Answer by adiloren-ga on 20 Aug 2004 22:59 PDT
Here is some more info. I'm still working on it...

Business Wire
November 20, 2002

HEADLINE: Harman Consumer Systems Group Announces Expansion With
Harman Kardon Reentering Car Audio Aftermarket

<<Traffic Pro(TM), a CD/Radio/Navigation Head Unit, to Drive
Reintroduction of Brand, Enable HCSG to Enter $24 Million U.S. Mobile
Navigation Market

Having successfully captured the European GPS mobile navigation
market, the Harman Consumer Systems Group (HCSG), a division of Harman
International Industries, Inc. (NYSE:HAR), announced today that its
Harman Kardon brand is launching a reentry into the U.S. electronics
aftermarket with its TrafficPro(TM) system.

TrafficPro will be the first Harman Kardon car audio product to be
available at retail locations on this side of the Atlantic in nearly
20 years. A onetime leader in the aftermarket car audio arena with a
full product line, Harman Kardon in recent years has focused its
mobile electronics efforts solely on the original equipment
manufacturer (OEM) business and home audio. Harman Kardon audio
systems long have been the preferred OEM factory upgrade of many
premium car.>>

PR Newswire
October 21, 2002, Monday

<<While navigation systems entered the automotive original equipment
market through the luxury segment, vehicle manufacturers are migrating
the systems to a wide variety of vehicle segments, according to
research completed by CSM Worldwide.  Segments such as sport utility
vehicles and minivans will be the primary drivers of growth, nearly
doubling the number of systems on the market between 2002 and 2007
resulting in a $4 billion per year industry.
    The rank order in unit market share for suppliers to the current
combined North American and European market is:

    1.  Siemens VDO 
    2.  Harman/Becker 
    3.  Bosch 
    4.  Alpine 
    5.  Visteon>>

Business Wire
August 15, 2001

<<Rolling forward from July 1, 2002, Harman/Becker will supply all
Mercedes-Benz' requirements for navigation systems. The new awards are
for integrated infotainment systems with display for all E Class and
for DVD navigation systems for all S Class vehicles.

These awards represent approximately $150 million in incremental sales
in fiscal 2003, $300 million in fiscal 2004 and over $400 million in
fiscal 2005.

Commenting on the new award, Gregory Stapleton, President and Chief
Operating Officer of Harman International, said: "We are delighted
with this decision by Mercedes. It confirms our technological
leadership in this critical area. We are now the primary supplier of
these sophisticated systems to Mercedes-Benz, BMW, Audi, Porsche and
There are no comments at this time.

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