Overview of R & D expenditure of European multinational automobile enterprises in 2021
The following is the Overview of R & D expenditure of European multinational automobile enterprises in 2021 recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.
In the past two years, the largest asset restructuring project in the global automotive industry is the merger of PSA and FCA. On January 17, 2021, stellantis N.V., an enterprise formed by the merger of the two, was incorporated in the Netherlands, becoming the third largest multinational automotive enterprise in the world after Toyota Motor and Volkswagen Group.
European multinational auto companies, except Renault, which only released the main financial data, have published their annual reports for 2021. The following table shows the data of R & D expenditure and vehicle sales of these enterprises in 2021.
On the whole, the proportion of R & D revenue of European enterprises is not low, and passenger vehicle enterprises are generally much higher than commercial vehicle enterprises. Stellantis is the lowest among passenger vehicle enterprises, with a proportion of 3.84%, which is similar to that of commercial vehicle enterprises, which is related to the operation status of the original PSA and FCA. For enterprises that have released data on the capitalization rate of R & D expenditure, the figure of most enterprises is about 50%.
The R & D expenditures of specific enterprises are as follows:
1. Volvo cars introduced the accounting treatment method of its R & D expenditure in detail in its annual report. R & D activities are divided into concept stage and product development stage. The cost of the concept stage usually refers to the research cost of the new product in the early development stage. At this time, the result of the project is still uncertain, for example, there are different alternatives still under evaluation and selection. Therefore, the research cost in the concept stage is directly included in the current profit and loss as an expense when it occurs.
When a R & D project develops to a certain extent, there is already a definable product, and the product will generate economic benefits in the future after evaluation, the project is considered to be in the development stage. All development costs of new products at this stage, including production and software costs, are recognized as internally generated intangible assets if certain conditions are met. After the new products are officially put into production and sales, amortization is included in the corresponding sales cost.
The accounting treatment of R & D expenditure of other enterprises is similar to that of Volvo cars.
2. The overall R & D revenue ratio of Volkswagen Group is 6.23%, but the group has two business departments: automotive and automotive finance. Looking at the automotive sector alone, the sales revenue was 206.237 billion euros, the R & D expenditure was 15.583 billion euros, an increase of 12.2% over the previous year, and the R & D revenue ratio was 7.6%; The capitalized expenditure was 7.843 billion euros, with a capitalization rate of 50.3%. The R & D revenue ratio of 7.6% is the highest among these enterprises.
In fiscal year 2021, Volkswagen Group submitted 5638 patent applications worldwide, most of which occurred in Germany. These patents are increasingly concentrated in important cutting-edge fields such as driving assistance systems, automation and networking, and alternative drive systems, showing the innovative ability of the Volkswagen Group.
In addition to developing new models, Volkswagen’s R & D activities also focus on new technologies such as electrification and digitization of vehicles and the modular platform of models.
As of December 31, 2021, the R & D Department of Volkswagen Group (including joint ventures in China) has 53046 people, accounting for 7.9% of the total number of employees.
3. Daimler group has split the original Daimler company into two independent listed companies, commercial vehicles and passenger vehicles. Daimler truck holding company was established on December 10, 2021, and Mercedes Benz group was established on February 1, 2022.
Daimler group’s R & D expenditure in 2021 was 9.105 billion euros, with a R & D revenue ratio of 5.42% and a capitalization rate of 27%.
The R & D expenditure of Mercedes Benz cars and vans reached 7.695 billion euros, slightly higher than the previous year, and the R & D revenue ratio was 7.02%. Of the 7.695 billion euros spent on R & D, 7.2 billion euros were spent on cars and 500million euros on vans.
The R & D work of Mercedes Benz focuses on the production of next-generation electric vehicles and batteries. In addition, it is also used to strengthen the R & D expenditure of digitalization and autonomous driving.
Daimler’s truck and bus R & D projects are important in the field of emission standards and fuel efficiency, as well as customized products and technologies for important growth markets.
4. The new BMW IX pure electric vehicle of BMW Group has a range of 600 kilometers, and it is also the first mass-produced vehicle in the world to introduce 5g mobile communication standard.
BMW is committed to the integration of digital technology and physical experience. BMW Group believes that Hyundai Automobile is not only the most complex item used by people as consumers, but also becoming a real digital device. Therefore, it is not surprising that the mode of digital business will occupy an increasing share in product value creation, which is especially applicable to the Chinese market with many young technology enthusiasts and customers.
BMW Group has the largest team, with about 10000 it and software experts in 10 places in Europe, Asia and the Americas, engaged in the research and development of vehicle digitalization.
5. Stellantis is committed to continuing its research and development activities on the original basis of FCA and PSA, aiming to improve the design, performance, safety, energy efficiency, reliability, consumption experience and durability of products and services, and to meet the challenges faced by the automotive industry in terms of environmental and safety regulations, mobile terminal trends, networking, software and autonomous driving.
In terms of product development, stellantis’ recent research focuses on mobile electrification, clean energy, autonomous driving and network technology.
Stellantis announced in 2021 that it plans to turn all its brand products to electrification by 2025. Accordingly, the focus of R & D work is also shifting to electrification and related technologies, as well as intelligent and networked technologies.
In addition, stellantis’ key R & D activities continue to focus on reducing the overall energy demand of vehicles, fuel consumption and emissions based on traditional technologies. Recent research and development activities to reduce fuel consumption and emissions have focused on powertrain technologies, including engines, transmissions, axles and transmission systems, hybrid and electric drives, and alternative fuel technologies.
From the perspective of the content of R & D work of European multinational automobile enterprises, electrification, digitalization, intellectualization, networking, mobile terminal and automatic driving are the development direction of automobile products, and multinational automobile enterprises are increasing their R & D investment in these aspects. Although China’s automobile enterprises have already started in these areas, in order not to lose in this round of competition, they must increase the intensity of R & D investment and strengthen relevant basic research.
From: Passenger Association
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