Review About Automotive Industry

While you may only here about the negative attributes of asbestos, such as an increased risk for mesothelioma, lung cancer, and other such diseases, it actually has a number of extremely useful characteristics that prompted its widespread use up until the 1980s. Many industries, including construction, utilized this substance before it was banned. The automotive industry, too, was not immune to the widespread appeal of asbestos.

Asbestos is a fiber that is a member of the silicate family. It has six different subtypes, which are divided into two main families. The first group, the serpentines, only consist of one subtype, chrysotile. Chrysotile was the most popular form of asbestos because of its sheetlike properties and the ability to form layers. The other group, amphiboles, are more chain-like. The amphibole family includes amosite, crocidolite, anthophyllite, tremolite, and actinolite. Amosite is the second-most common form of asbestos after chrysotile, and crocidolite is considered the most dangerous.

Despite the dangers of asbestos, the car industry still used it because it can be highly useful. As a silicate mineral, asbestos embodies several characteristics of this mineral family that are helpful. It is highly resistant to a number of things, including heat, flame, electricity, chemicals, and degradation. Asbestos adds some of its own useful characteristics as well, including high tensile strength and flexibility.

Because of these handy properties, asbestos has been historically added to a number of different car parts, including:

Brake pads and shoes

Clutch plates

Clutch facings

Gaskets

Many of these parts experience large amounts of wear and tear. For example, every time you hit your brakes, they can release asbestos fibers into the air if the pads or shoes consist of the mineral. Because asbestos is only dangerous when it goes airborne and then settles into someone’s lungs, it is no wonder that automotive workers are particularly susceptible to asbestos diseases.

To help protect these workers and other people around them, the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA) have teamed together to regulate asbestos. The EPA generally regulates asbestos that is released into the air, while OSHA specifically targets workers. It requires auto repair shops who perform more than five brake or clutch repairs or replacements per week must utilize at least one of the following safety measures:

Wet Wipe method

Low pressure/wet cleaning method

Negative-pressure enclosure/HEPA vacuum system method

Sadly, these regulations came too late for many auto workers, leading to health problems such as mesothelioma. If you or someone you know has developed this deadly disease due to illegal asbestos exposure, you should speak to a lawyer today regarding your rights. For more information, check out the mesothelioma lawyers at Williams Kherkher today.

By: Joseph Devine

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It used to be the General Motors, Ford, and Chrysler at first, then comes the new era of Germans, Americans, and the Japanese. Not so far in the future we will start to see the rise of the new markets for automobiles from China and India.

Cars have become a necessity in our daily life. With oil prices topping an all time sky high of $130USD per barrel, people are still in favor to drive their fuel guzzlers everyday to work, leisure, and errands. The demand for a four wheeler is still huge as people are eager to pay for the high fuel price.

For carmakers, solving the problem for high fuel prices is simple – reducing the sale price of the car, make it drink less fuel, and promise the customers of a better mileage for their money. This can be made simple by producing fuel economical cars in countries that are well popular for their cheap labors and raw materials – China and India.

To relate both countries by their auto industry strategies together, we will not see them doing the same approach towards their growing global market share. India, more of a place full of low cost labors, is a central hub for assembling cheap and low cost cars for the European region. Cars like Hyundai Getz, Suzuki Swifts, and so many other super minis are assembled and being exported via Chennai port. While India itself is a central hub for other car makers to build their plants and assembly line in, local car maker Tata has announced it’s own super economical and fuel saving super compact, the Tata Nano. It costs a mere 1 Lakh (approximately $2500USD) and with this price, it gives the opportunity for consumers to consider a cheap and economical car.

China on the other hand has a different approach than India. Since last year China has overtaken Germany to emerge as the third largest car making country in the world. With its growing population and economy, it may one day reach the position of the Japanese car industries. Since intellectual property is not being taken in seriously in China, many vehicles are designed identically to look like some other automobiles around. They also have their own brand such as LiFan and Chery with the former trying to purchase a plant in Brazil to manufacture their own cheap and economical car engine, which will realize the car being fully China made instead of their locally assembled imported vehicles.

Looking at the rate at how their market grows, we do hope that one day China or India will emerge as the new benchmark in automotive industry, maintaining standards and quality while keeping the price low for people around the world – Would be better if they can come out with hybrid cars too.

By: Brenda Williams

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In April 2009 Ford declared that it would not need government aid and claimed that it had a plan to break even in two years. Ford has been ahead of its main rival General Motors in scaling down its business by selling Aston Martin, Land Rover and Jaguar over the past two years. GM, meanwhile, went through a massive reorganization after filing for Chapter 11 bankruptcy proceedings. GM is temporarily majority owned by US government after it invested $57.6 billion in the company.

Per the plan GM executives presented in congressional hearings the company would reach the break-even point by 2011. They further declared that they would cut costs by eliminating 47,000 jobs, closing five more unprofitable factories and cut at least $18 billion in debt from its balance sheet. It was expected that these cost cuts would allow the company to break even when the U.S. auto market returned to between 11.5 million to 12 million vehicles sold per year.

J.D Power and Associates, a global marketing information services firm, announced its projections about the new automotive industry break-even point. According to Gary Dilts, senior vice president of U.S. automotive at J.D. Power and Associates, due to cost-cutting measures such as renegotiation of union and supplier contracts, the break-even point for the domestic automotive industry will decrease by more than 2 million units when comparing current industry conditions to those forecast in 2010. Dilts explains the reason for this decrease due to the significant declines in the auto industry which resulted in lost sales volume of more than 7 million units between 2000 and 2009. This sales volume makes $175 billion in net revenue.

In automobile industry fixed costs make up a greater portion of total costs. The manufacturing plants, assembly lines and technology invested to build vehicles are some of the items forming the fixed costs. Compared to fixed costs, variable costs form a relatively smaller portion of the total costs. This puts the auto industry into a risky situation due to high operating leverage.

The definition of the operating leverage is the ratio of fixed costs to total costs. The higher a firm’s fixed costs, the higher its operating leverage. In firms having high operating leverage, small percentage changes in sales volumes result in large percentage changes in profits. This variability or sensitivity of profits to changes in sales volume put the firm into a risky position. Per the “Greater Risk, Greater Return” rule this also means more profit if demand and therefore sales volume is high.

In automobile industry since fixed costs are relatively high, during the recession times, as the demand and sales volume go down the likelihood of earnings to cover the fixed costs will decrease, i.e. it will be more difficult for the automobile companies to break even. Therefore the automobile companies start cutting the costs, especially fixed costs, like closing the unprofitable facilities, eliminating jobs. For example, GM sold its unprofitable Hummer to a Chinese company.

The car companies should increase the volume of profitable vehicles and effective advertising activities to be able to sell them to the customers. Increase in the sales volume will help in covering the high fixed costs and reach the break-even point. In August 06, 2009 Edward Whitacre Jr., the new chairman of General Motors, stated that GM needs to improve the number of vehicles sold. To do that, he said, the board may decide to move up the launch of several new vehicles.

Comparing Ford and General Motor’s Consolidated Results of Operations from Form 10-K these two companies submitted to Securities and Exchange Commission (SEC) back in 2008:

Ford (millions)

Revenue: 146,277
Cost and Expenses: 160,949
Net Income/Loss: (14,672)
Volume of Sales: 5.532

General Motors (millions)

Revenue: 148,979
Cost and Expenses: 179,839
Net Income/Loss: (30,860)
Volume of Sales: 8.144

Break-even points for these companies can be calculated using the Revenue, Cost and Volume figures above.

Ford
Average Price: 146,277 / 5.532 = $26,441

GM
Average Price: 148,979 / 8.144 = $18,293

To cover its Costs and Expenses Ford had to sell: 160,949 / 26,441 = 6.08 million cars and trucks. To cover its Costs and Expenses General Motors had to sell: 179,839 / 18,293 = 9.83 million cars and trucks. The additional sales volume GM and Ford had to make to reach the break-even point back in 2008.

Ford: 6.08 – 5.532 = 0.554 million
GM: 9.83 – 8.144 = 1.686 million

By: Bilal Ciftci

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In 1984 Nissan established a Factory in Sunderland, North East England. In the past eight years this factory has been Europe’s most efficient car plant. Since then Nissans overall investment in the region has been approximately ?2.1bn ($4.1bn).

The North East of England also boasts a wide range of specialist industrial support. This includes the NEPA programme which looks at lean automotive manufacturing; The Regional Centre for Manufacturing Excellence; The Automotive Academy; and the Automotive Centre for Excellence.

These resources are made available to businesses that are looking to set up in the region. The regional development agency, One NorthEast, have a dedicated team who help businesses from all over Europe and around the world to look at the opportunities available to business looking to relocate and take advantages of what the North East has to offer.

Located in nearby Newcastle upon Tyne is Northumbria University. The design school contributes to the industrial design of automotive products.

The level of commitment by Nissan has propelled the North East of England as one of the top places in Europe to relocate automotive businesses [http://www.investnortheastengland.com/page/sectors/automotive.cfm] as well as the expansion opportunities available.

Nissans decision to move to the North east has prompted over 150 automotive companies to relocate or start up in the region and the industry now has a combined workforce of 18,000 skilled people. Companies in the car or car component industry can take advantage of the regions large and skilled workforce with great employment skills in the automotive industry.

In addition to the employable skills enjoyed in the region, the industry is also supported through the Institute of Automotive and Manufacturing Advance practice at the University of Sunderland which is recognised worldwide as a one of the leaders in its field. Its research includes materials and structural analysis, manufacturing systems and ergonomics. There is also Durham University’s Centre for Automotive Research; here they have expertise in vehicle aerodynamics and hybrid vehicles.

So the North East of England is a region that can support new and existing businesses that are looking for expansion opportunities or relocation opportunities in the Automotive industry [http://www.investnortheastengland.com/page/sectors/automotive.cfm]. With a highly skilled workforce and support and collaboration available for the regions local Universities the North East has established itself as one of Europe’s prime locations for the Automotive industry.

If you would like to know more about these business opportunities then the best place to get advice is through the Invest North East England team at One NorthEast.

By: Tracy Hildreth

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China’s automobile industry has gained a rapid development. In 2009, the annual output had reached 13.79 million. And China becomes one of world’s largest car producers. However, some key parts such as bearing bush, axes guide, thrust washers, and car mold standard parts mainly rely on imports which bring both the golden opportunities and great challenges to the Chinese bearing manufacturers and automotive mold manufacturing industries.

At present, China’s resource-saving bearing manufacturing technology which is the independent intellectual property is more material-saving and energy-saving than the conventional bi-metal bearing manufacturing technology. It requires less investment and less usage of equipments. Thus, it is an excellent opportunity for development. Until the end of the patent license of “Automotive mold self-lubricating composite metal embossing die V block” in 2009, China had completed the restructuring of the traditional and existing sintering bi-metal manufacturing technology of sliding bearing through twenty years’ accumulation and efforts. And then China realized the shape manufacturing of different bearing categories which made from the steel – copper alloys. There are bushing bearing, thrust bearing, sliding bearings with special shapes, and sliding bearings with solid lubrications, etc.

The rate of utilization of the steel and copper alloy materials has reached nearly one hundred percent. Since then, the manufacture of sliding bearings have changed from the rough shaping of the material removal into a net shape processing which has high efficiency, light weight, and low-cost and so on. The net shape manufacturing method helps to save materials and energy so as to provide sliding bearing accessories for the development of the China’s automotive industry.

Auto mold industry is known as “the mother of auto industry.” To some extent, the mold industry is the mark to measure the development level of the car manufacturer or even the national auto industry. Although through years of development, China auto mould technology and capability has made much progress, it still lags behind in the world automotive manufacturing industries. According to the statistics, about 90% of the auto molds are not “Made in China”. And the majority of the luxury car molds depend on imports.

There are many suggestions to follow: firstly, creating a resource-saving sliding bearing manufacturing industry with the independent intellectual property. It is not only in accordance with the national policies, but also in line with the policies for the key parts of China’s automobile industry development. Besides, it is an important choice for the development of the automotive parts manufacturing industry.

Secondly, we should seize the opportunity of domestication of the automotive parts to lay a solid base for the rise of our own auto brands.

By: Sunny Ling

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The motor vehicle is the second most important treasure for most of the Americans after housing. The motor vehicle and parts industries employed 732,800 workers as reported in September, 2008, and the Detroit Three employed 239,341 hourly and salary workers in the United States at the end of 2007. More than 9 million people are employed in the auto industry across the world.

The U.S. automotive industry has always been the largest in the world. The U.S economy directly depends on the automotive industry as the automotive industry contributes to a higher level of output in the United States than any other single industry, and this output had been growing till last year 2008.

The contribution of automotive output to the U.S. GDP was substantial despite structural transform in the overall economy. Many other industries are also related or indirectly relying on auto motive industries. For example, metals industries rely on automotive industry purchases for a substantial share of their production. Thus the U.S economy is powered by the automobile industries for no doubts.

This was all well until the global recession hit the U.S economy. This large scale recession had a hand in automobiles sales reduction and slowly in the automotive industry crisis. Many think that the crisis occurred mainly as a result of bad business practices of the Big Three U.S. automakers. A December 22, 2008 New York times article stated, “For the most part, the so-called auto transplants – foreign-owned car companies with major operations in the United States – have deep pockets and ample credit, and they are not facing potential bankruptcy like General Motors and Chrysler.”

The American big three automobile industries, now recently the “Detroit Three” are General motors, Ford and Chrysler. The Detroit Three was destabilized by the rise in the automobile fuels which linked to the oil crises, which automatically discouraged the customers to buy Sports utility vehicles which have low fuel economy.

With the other side of option like fuel economy vehicles like green cars, the sales of the Big three cars declined slowly. The Big three faced criticism for their constant lineups irrespective of the fuel price rise. Eventually the North American customers switched to the high fuel economy vehicles of Japanese and European automakers. The Big Three faced financial losses and so they left factories idle and drastically cut the employment rate.

The sudden crises had impact not only on the US based industries but also on the foreign based automakers.

Employment impacts:

Direct: Reduction in the earnings of the employers due to their job cut at the Detroit Three.
Indirect: Changes in the employment due to cancellation of the purchased inputs to automobile industries.
Spin-off: These include the expenditure-induced effects in the general economy.

If only we could detach the US economy from the automobile industry, the solution to the economic crises would be permanent in my point of view. It’s good not to depend on a single big industry always for economic benefit of a country. Why the auto industry fallout should worry us all the time? Does decline in the auto industry production would mean that the countries employment rate should go down? If the auto industry could incorporate the high fuel efficiency technologies in vehicles, it could increase average fuel efficiency to 40 mpg. If the industry converted its entire fleet of new vehicles to gasoline-electric hybrid vehicles, it could give consumers 60 mpg.

If we want a secure and developing nation, we need to kick off the petroleum habit.

By: Miguel Covarrubias

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China, India & ASEAN countries are the major driving markets for Asian automotive industry. “Asian Automotive Industry (2007)” report provides objective analysis on Asian Automotive industry to explore the potential opportunities and challenges faced by the industry.

Key Findings

Low cost Vehicles are driving the growth of automotive industry in emerging economy, such as China & India. It offers immense opportunities for global players in these economies.
Asian countries, such as Thailand, Philippines, Indonesia, Malaysia, are expected to be the potential markets for automotives due to AFTA (ASEAN Free Trade Area).

From long-term perspective, cheap financing and prices discounts, rising income levels, and infrastructure developments will drive the growth in majority of Asian automotive market.
Thailand is emerging as a manufacturing hub for foreign automotive players, due to AFTA under which export tariff are very less.

Poor infrastructure affecting the growth pattern in Asian automotive industry e.g. commercial vehicles dominates Indonesian and two wheelers in Sri Lankan automotive market due to the poor roads.

Key Issues and Facts Analyzed

Automotive Industry performance of major Asian countries.
What opportunities exist for the automobile players in Asian automotive industry?
Major challenges and driving forces for Asian automotive industry.
Who are the major competitors in Global Passenger car industry?

Key Players Analyzed

This section covers the key facts about major players currently operating in the Asian automotive industry, such as General Motors, Toyota Motor, Ford, Nissan, Honda, and Hyundai etc.

Research Methodology Used

Information Sources

Books, Newspapers, Trade Journals, and White papers, Industry portals, Government Agencies, Trade associations, Monitoring Industry News and developments, and Access to more than 3000 paid databases.

Analysis Method

Ratio Analysis, Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis.

For More information kindly visit http://www.bharatbook.com

By: Sunil Sudhakar

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Numerous people have an ambition of getting an automotive school degree, but are confused about what type of jobs the automobile companies offer. If you also think the same way, no need to worry, as there are various types of automobile jobs available.

Since the car usage and ownership industries have tremendously grown in the past few years and continue to grow, anyone with an automobile school degree has an assured job.

Types of Jobs Available:

Below mentioned are some types of jobs, which a person having an automotive school degree may opt for:

1. Lube and oil technician: Cars need maintenance on a regular basis. Oil change is one-step involved in maintenance of cars. For maintenance of cars, many oil and lube store, garages, and workshops have come up. They provide jobs to persons, who have experience and knowledge to perform these maintenance tasks quickly. Graduates from such schools will easily get these types of jobs, since they are more knowledgeable and experienced in all these tasks.

2. Automotive Technicians: These people perform numerous tasks rather than just oil changing. Automobile technicians perform tasks such as air filter replacement and other such maintenance related tasks. They may also be hired for balancing wheels, mounting and dismounting wheels, changing brake pads and for performing tune-ups.

3. Mechanics: Mechanics require more education and experience compared to technicians. Mechanics perform more difficult repair works and may do the tasks of technicians too. A mechanic performs replacement tasks such as replacement of shocks and struts, alternators, drive shaft, and starters. Any person with an automobile school degree may apply for this job. Mechanics are given all the necessary hands-on training for this job.

4. Master Mechanics: A graduate from an automobile school will be proud of this particular job. This is a kind of job available at high quality automobile shop, garage or dealership maintenance workshop. The pay package of a master mechanic is higher than a technician or mechanic.

5. Auto Body and Paint Specialists: Persons who repair the damages on the vehicle are called auto body and paint specialists. These people are in great demand in recent times due to the high incidents of accidents. An auto body technician replaces exterior body parts and repairs damage. Paint technicians apply paint to the vehicle after repairing the damage.

6. Automobile Design and Engineering: This is the most esteemed job in the auto world. These auto expert persons design the look of a car. This job has very high demand because of the ever-changing technology and competition in the automobile industry. A person with a good understanding of auto theory as well as engineering practices may apply for this job.

These are some of the jobs available for automotive school graduates. Auto industries often require people for various jobs in diverse sectors of automobiles. The job may be for the creation or sales of new vehicles or it may be for repairs and maintenance of automobiles. To end, the auto world always has jobs for auto graduates.

By: Tom Tessin

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Suppliers that fail to be ahead of regulations, standards, and consumer requirements can suffer in bringing up new automotive technologies to market. In early days of auto industry, latest technologies tend to introduce in random manner, at times based on inventor’s whim or possibly even dream tinkerer had night before. Great Bentley brought in aluminum pistons in automobiles due to decorative piston shaped paperweight that he had seen! To men and women functioning in this area, vagaries that enclose successful new automotive technology introductions most likely seem wide open. For each technology that embraces, over 10 potential fresh ones are been discarded. Steam cooled engines, talking dashboards, plastic cylinder blocks, as well as high-temperature electric batteries are some of ideas, which sounds good at some point, however finished up on the industry’s discard pile.

In order understand forces at work – and huge investments that they make – means knowing four main drivers of the automotive technology achievement and failure. Those 4 drivers are:

The robustness of technology platform: Accurately, is a technology market ready? Obstructions to robustness comprise lack of resources possessing properties needed, insufficient control plans to make thing work in a field, short of infrastructure to hold up invention, unproven construction processes as well as faulty and under-optimized product & process designs.

Many of obstacles to market readiness for new technology is related to lack of required control and pointer systems. The anti-lock brakes were foiled for years unless necessary sensor patterns and cheaply obtainable digital power caught up. Original ABS systems that was introduced by Hayes & Bendix in 1960s utlized analog PC systems, which had important performance, cost & dependability drawbacks – in some other words, they did not work very well! Ever more, robustness comprises of ability to net with industry wide standards when they evolve.

One more key “gating feature” for automotive technology is materials performance. Some designs developed in early days of automobile might succeed if materials were available with necessary performance properties. Key to Ford Model success and indestructibility need to do with the apply of molybdenum steel that was hardly at limits of the commercial feasibility until obsessed Ford drove the producers to build necessary developments.

Lack of transportation also constricts technology’s marketplace readiness. The major obstacles facing today’s substitute fuel technologies is a lack of fueling and charging stations for the natural gas and electric cars. Lastly, less than optimal basic pattern solutions have harshly inhibited latest technology robustness, in spite of soundness of an underlying pattern.

Entertainment & Convenience. The satellite radios allow drivers listen to favorite music and radio programming continuous across all over the country. Some also straight connect Mp3 player in stereo system. Some cars feature the DVD systems in order to keep the passengers calm. Movable GPS systems are used in whatsoever car you are driving and phones can give maps as well as driving directions.

By: Tom Tessin

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The automotive industry has undergone tremendous changes and development in the 20th century and so far there is no stopping to it. Since the rolling out of the first car, the automotive industry news reports a steep rise in sales, as more and more cars are being produced. In recent times, with so much economic liberalization, attractive finance schemes and tax benefit laws and with increase in the income of the local people, car sales have been hitting new highs. However, with changing times, the mentality of people has changed and today services provided by car manufacturers play a crucial role, apart from car designs and models.

As more companies jump into the automotive sector, buyers have more freedom of choice to select the best of the lot. Unlike earlier times, buyers today pay more attention towards the services provided by the car producers. And with a variety of media around, buyers research and gather more information, before they step into any car dealerships. Hence, with so much of emphasis given on service, the role of the automotive service manager is vital to every car company in the market.

Not only does the automotive service manager coordinate and supervise the duties performed by the service staff, he looks after all the operations carried out by the service department. He has to make sure that all the employees working under him are adhering to company policies and other applicable standards and laws. Because the automotive service manager deals with customers and the service department, he has to be calculative about keeping both, the customer and his staff happy. Also, he does need to have a decent knowledge about mechanics of automobiles, and a pleasing personality to maintain customer satisfaction ratio.

Those employed in the service manager job have to ensure customer retention by not only providing repair and maintenance service but also by communicating and understanding customer’s priorities. He has to analyze and identify market reports, and have a good understanding of current trends making waves in the automotive sector. With so many things in one platter, it goes without saying that the service manager job requires leadership qualities, management know-how, counseling skills, apart from the customer service parameters.

At times, it becomes an arduous task for the automotive service manager to cope up with so many responsibilities and duties, which is time when he needs a service consultant, who will help him to get out of his overloaded work schedule. The main purpose of the service consultant is to counsel service managers, who are buried under the work load which comes with their job profile. Service consultants help service managers on how they can perform their duties in an organized way, which will not only bring down their stress level, but also pump out more productivity.

Service consultants also provide insight to those in the service manager job or service director job on how to calculate the productivity of other employees, and educate them with work practices to enhance their customer service skills. Service consultants take service advisor training as part of the service consulting module and set standards to make sure employees always have a positive approach towards their work and are updated with skills and knowledge so that they can provide a better experience to their customers.

By: Chris D Collins

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