Access America 2010 Annual Report Download - page 16

LINES OF BUSINESS
Auto
A struggling reshaped auto industry
bounces back
2010 was a comeback year for many original
equipment manufacturers (OEMs), particularly
in North America. It was also a year when
the automotive business flourished in BRIC
markets.
North American OEMs return to the
world stage and M&As continue
Ford reclaimed its number two spot by
overtaking Toyota in the U.S. and posted big
profits. General Motors, on the brink of doom
in 2009, increased its sales worldwide and
is nearing profitability once again thanks to
government efforts to prevent its collapse.
Automotive OEMs continue to merge and
forge partnerships in an effort to share
spiralling costs. Volkswagen is close to finally
acquiring Porsche, and Fiat and Chrysler
consolidated their partnership.
BRIC is growing, Europe stagnates
The overall 2010 market context saw car sales
and the assistance business performing well
in China, Brazil, Australia, Russia and India.
However, the activity was flat in many markets
in Europe and significantly down, especially
in Germany where new car sales posted a
1-million-unit decline. However, European
luxury automobile sales bounced back during
the year.
Growth and green trends ahead
Continued global growth can be expected
in all world regions in new car sales in 2011.
Aswitnessed in the past few years, car owners
and manufacturers are increasingly concerned
about the environmental impact of their
vehicles. With the recent launch of several fully
electric powered vehicles, 2011 promises to be
a turning point in the market position of “green
cars” and in consumers’ acceptance of them.
Multiple new contracts drive
growth and profitability for roadside
assistance
We continued to invest time, money and
resources in 2010 to ensure that our industry-
leading, operational capabilities are delivered as
efficiently as possible, and focused on improving
profitability. As a result, our roadside assistance
activity fared extremely well. First and foremost,
2010 was a year of multiple new contract
wins. These contracts were not only finalised
with automotive manufacturers in China and
Australia, but also and more spectacularly
with companies in the financial sector, notably
in Brazil, France and Spain. In an impressive
demonstration of the growing importance
of financial players in our roadside assistance
portfolios, today over 60% of revenues from
this line of business are now generated with
+14.9%
in turnover
38%
of Allianz Global
Assistance
turnover
12–Allianz Global Assistance / Annual Report 2010