Review About Automotive Industry

Chinese consumers’ high demands for vehicles attract more and more global car manufacturers who do their efforts to develop new car models. Those global car manufacturers put new models into the domestic market. Thus, car industry has high requirements for the product research & development of the domestic parts industry. As a result, the huge market space of the automotive components is occupied by the multinational companies which own advanced technology and products.

In the bearing industry, based on production technology of the high-precision bearings (mainly used for engines, transmissions, and wheel hubs), many world bearing manufacturers actively build production system in China. At the same time, they also monopolize the high-end market by wholly-owned subsidiary, or reorganization and merger of Chinese companies. The world’s leading multinational companies such as SKF bearings, Schaeffler Group, Timken, and NSK have joint ventures or wholly owned plants in China. It is obvious that the international competition has become the main characteristics in domestic bearing market competition

Meanwhile, driven by demands in foreign markets, many domestic parts enterprises export large amount of bearing products through networks platform. According to the statistics from a well-known automotive e-commerce platform, the frequency of bearing products export reached 295 during January to June in 2010. It showed significant increase.

In 2009, China’s auto output and sales volume reached the number one in the whole world. The consumption of cars in the domestic market had entered a rapid development stage. It is predicted that in the next three years, there will be more than 30% rate of growth of car consumption in the domestic market. The rapid development of automobile industry makes the demands for the automotive bearing products increase sharply. In this context, the matching amount of China’s bearing industry has the highest record in history. Liu Enshi, the director-general of China Bearing Industrial Association (CBIA), said that a car needs about 50 sets of bearings; that is to say, it is a very huge market for the bearing industry.

“Currently, many industries have much demand for bearing products, especially the automotive industry which has the largest consumption of them. Automobile transmissions, engines, axles and other key assembly must use bearings. Although car bearing is a small part, it has a close relationship with the reliability, safety, and comfort of the car.” said Wan Lushun, the president and general manager of ZWZ. It is said that bearing is also called “joint of the automotive industry”. It is the basis for the automotive transmission. Bearings are required in most rotating parts.

By: Rainbow Hong

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Back in the 1960′s and early 1970′s, the domestic North American automotive industry was focused strictly on getting the product into the showrooms. During this period, the challenge was producing enough of the right product and getting it into the customers’ hands. Price was not an issue and foreign competition was virtually non-existent. Circumstances certainly have changed radically since then!

In the late 1970′s and early 1980′s, consumers demanded quality, quality, and more quality! This change in customer expectations resulted primarily from Japanese entry into the North American market. The Japanese auto manufacturers’ increase in market share also gained momentum from the first oil crisis in the US during the early 1970′s. The facts are that the Japanese had the right size vehicles with better fuel economy than their US counterparts, and they were convinced that continuous improvement in quality, as advocated by Dr.W. Edward Demings, was fundamental to growing their export base.

Dr. Demings is widely recognized as the “father of the Japanese post-war industrial revolution.” He taught that adopting the right management principles would enable companies to increase quality while reducing costs. Unfortunately, it took years before the US auto manufacturers began to inculcate his teachings.

During the 1990′s, worldwide demand for vehicles continued to grow as did the number of vehicle manufacturers. In addition, there was significant proliferation in the number of vehicle models available in the marketplace, with even more to come. By 2005, the industry had grown to the point where, on a worldwide basis, there were over twenty five million units of excess capacity. Four million units of that excess capacity existed right here in the US.

In a free market environment, excess capacity only results in intensified competition for the “next sale.” To keep their plants running, the US automotive manufacturers incurred incremental marketing expense through a variety of incentive programs. The net result was higher costs and lower profits due to incentive programs such as rebates and zero interest based payment plans.

In addition, many other factors put even greater pressure on the domestic automotive manufacturers’ ability to stay profitable. New environmental pressures for increased safety features, more rigid emissions standards, and improved fuel economy resulted in increased vehicle costs, most of which the manufacturers have not been able to pass on to the customer.

In summary, market forces dictating the need for improved product content and technology, increased competition and changing customer wants and expectations added even more cost for the vehicle manufacturers. At the same time, decreased consumer brand loyalty coupled with an overall decline in market demand put downward pressure on pricing. Finally, increased fuel costs shifted consumer demand away from the more profitable vehicle lines -SUV’s and light trucks – to smaller, more fuel efficient cars.

The net result was continuing profit deterioration for the automotive manufacturers only some of which could be passed on to their suppliers. By not being able to address these challenges on a timely basis, Chrysler and GM had to go to the government for “bailout” funds, at a significant cost to us, the taxpayers. Now the government owns sixty per cent of GM, and we, the taxpayers who provided the funds, didn’t even get to vote on it!

The government also fired and replaced the head of GM and dealerships that were about to be closed are being rescued by members of the House of Representatives.

What’s the next challenge facing the industry? My prediction is that the government will determine what vehicles we need, and which ones can be built by GM. Who knows, maybe there will be new regulations for the entire industry that will dictate what we’ll be driving in the future!

Is this still a free market economy or has the concept of free enterprise seen its heyday?

By: Charles H. Newman

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There’s no questioning the popularity of aftermarket auto parts in the US automotive industry. Basically alternate car parts most of which are not made by car manufacturers themselves, aftermarket auto parts compete with original equipment manufacturer (OEM) parts. When an original auto part fails (for instance, your hood strut) and is irreparable, the car owner has the choice – or dilemma – of whether to buy a new part from his car’s manufacturer or purchase an aftermarket part. Thus, inevitably, issues of which are more advantageous to car owners, which benefits the industry more, and other related questions and comparisons between OEM and aftermarket parts arise.

With the rise in production of aftermarket auto parts in the past two decades, a non-profit organization called the Certified Automotive Parts Association (CAPA) was established in 1987 to test and certify parts used for auto body repairs. Setting rigid standards for aftermarket parts, CAPA’s testing process includes an industry-recognized 500-hour salt spray test to indicate rust resistance. Tests on metal composition, screws, chipping and scratching resistance are also conducted. While the founding of CAPA initially boosted the trust in the quality of aftermarket auto parts, many automotive consumers still describe CAPA parts as generally not as good as OEM parts. Furthermore, questions on the credibility of the CAPA certification, despite its supposedly strict standards, still exist.

More often than not, aftermarket auto parts are compared in unfavorable ways to OEM parts. Negative comments/rumors include that these parts never fit, result in increased cycle time due to the extra effort it takes to make them fit, and other quality issues. But the benefits of aftermarket auto parts actually abound. First off, crash tests performed over the years by the critics of aftermarket auto parts have shown that these parts perform no differently than OEM parts. On the issue of hazardousness, it has been found that crash parts, whether aftermarket or OEM, do not affect the safety of a vehicle. Thus, there are no federal safety standards for crash/collision parts, except headlamps and the hinges on the hoods to prevent the hood from going through the windshield in the event of a crash.

When it comes to savings, the consumer wins when it comes to aftermarket auto parts, as such are categorically less expensive than OEM parts. This benefits not only the consumer but the insurance company (which pays for car repairs) and the collision/aftermarket shop owner as well, who is provided with more opportunities to repair when the lower cost of parts keep vehicles from totaling. But the savings work better for older cars. Some aftermarket auto parts can be non-usable for newer car models but are often very useful to older cars. Low cost repairs for older cars with the use of aftermarket parts can be crucial in keeping the vehicle from being totaled. These parts also cause less diminished value concerns for older vehicles.

Fears of warranty mishaps when it comes to aftermarket auto parts can also be thrown in the bin. Warranties on aftermarket auto parts are as good as OEM warranties. When a crash part has to be replaced, any original warranty on that part lapses but the warranty on the rest of the vehicle is unaffected. After a replacement part is installed, a new warranty takes over. Federal law prohibits manufacturer from basing warranties upon the exclusive use of OEM parts.

While both the OEM and aftermarket parts industries continue to develop and smooth out their negativities to gain the favor of the consumers, the competition can only benefit both the purchasers and the industry. As critics have remarked, when there is no competition, the OEM part seller price a part as it would like. But when a product competes with an aftermarket part, it would be priced cheaper than it originally would. It’s a two-way process though. If OEM parts were becoming more cost-competitive with aftermarket auto parts, aftermarket parts would have to strive harder to become more quality-competitive with OEM parts. If that believed distance of quality between the two is actually being bridged at present, aftermarket auto parts should still work on gaining the full trust of the public in the fact that they are indeed as good or even better than the original parts.

By: Robert Wilkins

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Automotive industry chemicals providers serve as the partners of car owners in making sure that their car performs at its peak. They understand the necessity of proper care and maintenance of vehicles and how to go about it. They are the ones whom their clients turn to for proper advice and guidance in using chemicals for car maintenance.

Chemical providers know that choosing quality chemicals ensures not only the efficiency of vehicles, but also their longevity. Using sub-standard chemicals can have a number of unfavorable effects, such as a need for constant upkeep of the car, which takes a lot of time, money and effort, as well as deterioration of the car’s performance over time.

The quality of industrial chemicals is of paramount importance, as this contributes to sales and maintaining good working relationships with clients. Given this, chemical providers need to partner with distributors whose products pass the strict industry standards and approvals. In addition, distributors with years of experience in the field have proper knowledge and established relationships with manufacturers that allow them to provide the best products and services. All these partnerships and experience also allow distributors to offer competitive prices to clients.

Automotive industry chemicals providers need to find distributors who can offer blending, drop shipping and private labeling to help them provide their clients with the best chemical solutions and service. These distributors need to be able to work with them closely in order to determine their specific needs and customize a formulation to address these.

By: Y. Tilden

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The automotive careers field is still wide open for anybody who might be looking to spend their future in this industry. Many people are under the false impression that these opportunities are limited to people who manage to get a position in an actual car dealership.

This could not be further from the truth as the automotive careers field makes use of individuals with a wide variety of different talents and qualifications all over the world. Very few people understand the enormity of the automotive industry and are unaware that this industry that it is one of the biggest job creating industries the world over.

This is a fact about the automotive careers field which has been so in the past and definitely will still be so in the future. So successfully being able to find a career in the automotive industry will not mean that you need to change the type of career which you are in, but rather that you need to look into ways by which your current skills can be used in the industry.

For example, people who are currently employed in banks who might be looking for a change to something in the automotive careers field should find it easy to secure a position in the industry. They already have the basic training which they will have got from the bank as to how one structures a car sales financing.

These people would fall perfectly into many areas of the automotive careers field as they have been trained to structure deals in the banks favor and how to make it most profitable for any organization which they work for.

This is only one example of how someone looking into a change to the automotive careers field can begin to find out how their own unique talents or qualifications can help them to secure a position in this diverse industry. So do not let perceptions limit your ability to see where you can fit into this industry with whatever talents you already have.

The automotive careers field is constantly growing and will continue to do so far into the future, all you need to do is to figure out how you can best fit into the industry. No matter whom you are or what your situation is, if you truly put your mind to it you will find your place within the automotive industry.

By: Rocco Van Rooyen

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Social networking for the automotive industry seems a bit hard to fathom. With all of the sites out there doing it, but only concentrating on a couple of different sectors of the industry. The way I see it for this to work, it needs to be more all-inclusive.

The automotive a whole is having hard times right now, and believe me they are all looking for ways to make their businesses perform better. They go to the web because it’s one of the best places to push their businesses without having to spend more money then they can afford.

With all of the buzz on the net about social networking, you can bet they are looking in to it, just as I did. A lot of them are probably finding the exact same thing as I did, that there are no social networks that are directly related to their business.

Why on earth would you join a social network that doesn’t relate to your business? I know I wouldn’t do it, if they are looking to promote their business by the use of a social network, it just makes sense to look for like minded people in the social networks.

It stands to reason that a person who is looking to promote their auto restoration shop, doesn’t want to join an automotive social network that is aimed at new car dealers. What point is there to spend the time that it takes to network with people there.

Social networking takes a lot of time to do right. You need to figure out the best way to use it for your business. It takes hours of studying to get it right, you need to know demographics, and why the customers would respond to your as opposed to another person.

If you on the network that is aimed at you specific sector you increase you chances of it working for you greatly. Although a lot of the automotive industry still has no place to go for this, people are out there wondering why automotive social networking seems to be failing as a whole.

The bottom line is there is no such a thing as the idea of as a whole, it is just a few sectors of the industry that are covered in the social networking universe. I wonder how these people have come to a conclusion that it’s failing as a whole, when that doesn’t exist yet.

When you take a slice of pie, you can’t know the entire story of that pie. No I don’t think that automotive social networking as a whole has failed, I think that it need to have deeper exploration. The automotive industry is a tough way to make a living.

A lot of the people in the industry feel as if they got left out in the cold, if you give them a nice warm fuzzy place to call home, you can bet they will swoon right on it. They will attack like a pack of vultures, but they need to fell like they are getting something from it.

In the automotive industry we don’t have piles of money sitting around to experiment with, we need things to work the first time. I realize that most of these web sites don’t charge to join them, but it does take a person a lot of time to make them work.

By: David Atkin

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The automotive Industry is really facing some tough times right now. How long will these down times last?

It is not the best time to try and make a living selling automobiles with the industry slowing down and even some of the top companies closing their doors. You might have to put in over sixty hours a week to make what would have only taken you ten hours a week to accomplish a year or two ago.

We know that people will always want to buy car and trucks so it’s not as if they are going to stop making them. But if you plan to ride out the storm and keep trying to make your living in automotive sales, be prepared because it might be a long time before things recover.

In the meantime, you can either work some projects on the side or even with the purpose of replacing what you are doing right now. Of the thousands and thousands of people that have been laid off in the automotive industry, many of them have found that they have matched and in some cases greatly exceeded their income by making money from home using their computer and internet connection.

There is a massive trend right now. People that have lost their jobs in this economy are flocking to start new careers from home on the internet. You can be a part of this if you get in now while the trend is still growing strong.

Good luck with whatever you decide!

By: Nick Lang

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The British vehicle manufacturing industry leads Europe with over forty companies producing cars, trucks, vans and buses, with additional international companies manufacturing the necessary components for those vehicles. The Automotive Industry represents 13% of Britain’s total exports, and it provides over 180,000 jobs and contributes approximately 10.2 Billion Pounds to the UK economy.

In support of these manufacturing enterprises, numerous retail, service, maintenance and finance sectors assist in the smooth running of the total industry. There are a number of car leasing and car finance companies, such as Pendle Vehicle Contracts, that provide an important and necessary service to the industry. In 2009, it was reported that this sector generated 24 Billion Pounds in value added services and products to the UK economy and employed over 552,000 people in full time employment.

To ensure the continued smooth running of the Contract Hire, Car Leasing and Car Finance businesses, a strong representative body called the British Vehicle Rental and Leasing Association (BVRLA) was formed to oversee the sector. The Association looks after the interests of its members and sets industry standards for all operations in the vehicle contract hire, leasing and daily hire sectors.

In the last twelve months, while realising the growing demand of businesses wanting to lease vehicles instead of buying them outright, the British Government has changed the rules on car leasing, focussing on a car’s CO2 emissions. The Government sees this as a positive step towards a low-carbon future and the development of green-friendly vehicles in the UK.

By: James Pendle

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Automotive dealers have a number of objectives to meet with respect to stock levels. These include maintaining the right level of stock inventory, minimising stock holdings, keeping stock costs to a minimum and maximising efficiency in stock use. A consistent ordering process reduces business pressure to meet stock levels and allows dealers and distributors to manage the exceptions to stock levels as opposed to moving from one crisis to the next.

Without an efficient forecasting process in place a dealer will simply aim to minimize stock holdings. However, if dealers are not forecasting correctly, stock levels will be incorrect. There are obvious inventory costs in holding too much stock but at the same time, too little may require emergency orders. Dealers who require such emergency orders bear not only higher costs of stock purchase but also increased freight costs. In addition, dealers have traditionally decided not to order extra stock because, in the event that the dealer is unable to move that stock within a reasonable time frame, there may be a higher cost of managing and warehousing inventory.

An efficient forecasting system assists both the distributor and dealer to reduce costs by providing a consistent, predictable and reliable basis for stock inventory. There will always be unforeseen circumstances, but these can be managed as exceptions as opposed to normal business processes.

Distributor versus dealer forecasting
A new system, pioneered and functioning well in Europe, gives distributors, rather than dealers, ultimate responsibility for forecasting stock requirements. By analysing trends in stock ordering across all dealerships, the distributor is better able to forecast, taking a broad view of requirements, predicting the expected stock requirements of dealers and advising accordingly. For example, following the release of a new vehicle model, patterns may emerge in high volume metropolitan locations. These then provide valid information on trends as the volume increases in other locations, such as in country areas. The distributor can advise or make certain components compulsory when a new dealer starts up or a new model is introduced into a new area.

Under this new system a dealer is obliged to purchase a certain level of stock because the distributor wants to ensure that a dealer has a basic set of components for a particular vehicle model that will cover most situations. Distributors understand, through trend analysis, the frequency with which components will be used and are in a position to advise dealers about the components that are to be maintained.

There has been slight, initial resistance from the dealers in the implementation of this system. The major issue has been that the distributor is basically instructing the dealer as to the stock that has to be purchased. However, as the distributor now accepts a greater risk by allowing the dealers to return unused stock within an agreed period or to increase or in some circumstances reduce quantities, resistance has been greatly reduced.

The advantage to the dealer in agreeing to those recommendations is that many dealers today would not stock all the recommended parts due to the cost of maintaining inventory and the fact that it could not be returned to the distributor if it was not used over a given time. Essentially, the dealer manages the inventory risk and their behaviour reflects that risk.

Free flow of information within the network
The key to successful dealer forecasting is the free flow of information between the dealer and the distributor. Dealers provide information about their current stock levels and the demand for stock items and the distributor can understand the stock patterns that the dealer experiences. In a well functioning dealer forecasting system most of the risk of maintaining inventory is with the distributor, not the dealer.

The distributor has a broad visibility of stock levels across all dealerships and in certain circumstances it is possible to open up the visibility between all dealerships. A dealer enquiry for a part can reflect both the distributor stock and the dealer network stock. Generally, a dealer will be able to see only the distributor stock and if that has been exhausted, a dealer may be allowed to view the rest of the stock. Distributors encourage dealers to buy from the distributor first, and then buy it within the network. When buying within the network the supplying dealer accepts the order and is credited from the distributor. The receiving dealer is charged for the stock from the distributor. The distributor can then monitor the demand between the two, and adjust the system for that demand later on. The distributor can then analyse whether a dealership is using more of a particular stock than expected, and can adjust the dealer’s forecast accordingly.

Contingency for emergency orders
The primary goal in any stock control process is to reduce emergency order frequency. An efficient warehouse process, where dealers place more stock orders and less daily or emergency orders reduces pressure on the entire distribution and dealer network. The dealer forecasting system, together with an optional distributor buy-back strategy, goes a long way to achieving this.

Dealers are encouraged to stock a greater range of parts, based on the analysis gained from a consistent forecasting process so that they can fulfil their customer requirements efficiently and cost effectively. The distributor gains the benefit of knowing where parts are located throughout the dealer network and a more efficient warehousing operation.

There are some quite significant benefits to both distributors and dealers of a dealer forecasting system. Distributors and dealers in Europe that have engaged this model are experiencing significant upside to their business and are now more able to meet customer requirements as well as having a more consistent and predictable inventory process.

The free flow of information between the distributor and dealer is enhanced with a dealer forecasting system. Distributors understand the amount and frequency of all stock requirements in the system. There is an ability to move stock using both the distribution and dealer network. The dealer however has reduced risk in stock holdings and so is more likely to retain a greater variety and number of parts to satisfy customer needs.

Summary
Consistent and predictable information flow between a distributor and a dealer can be achieved through an efficient forecasting system. A distributor, having access to a broad view across all dealers, can provide in depth analysis of stock usage, inventory and future stock requirements. A distributor is then able to provide accurate advice to dealers on the type, amount and availability of stock required based on factual data.

Cost reductions throughout the supply chain process are realised for distributors and dealers through a more streamlined forecasting system. Facts can dictate how much stock is required across the entire dealer network and the expected usage rates by each individual dealer. Total stock inventory is reduced, availability immediately known and the ability for the distributor to deal with emergency orders is greatly enhanced. For both the distributor and dealer, inventory and warehousing costs are reduced while a reduction in frequency of emergency orders results in less freight and delivery costs.

By: Ben Portelli

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Imagine what our lives would be if there were no vehicles in our life? You would have to walk a long way, ride a horse or a carriage. Visiting family and friends would be a difficult, no proper roads would have been constructed and we would have to limit our travels anywhere.

It is really hard to imagine what our lives would be without the thing that we now take for granted. Let’s keep in mind that the automobile has really changed the way we live our live.

With the onset of the machine age, the world has seen a new turning era, which we are all thankful for today. The automobile has a great impact on how we live and work, transporting us and our goods anywhere. A network of highways have been built, fuel stations have emerged and people can choose to stay far away. It has made the world smaller for us.

The American automobile culture has been featured in songs, poetry, films and literature. It has become a part of our day to day life. It also has a great impact on our economy as well. Cities have grown, suburbs have popped up and going anywhere is possible.

No other invention has touched a great aspect of our society as much as automobiles have. Our entire lifestyle has completely change, it has altered our economy and redefined our everyday life. Without automobiles, our world wouldn’t be anything like it is today.

The automobile industry has become a crucial element in today’s economy of many industrialized nations. The production and sales of automotive are the major indicators of the economy status of most countries. The special requirements of mass production of automotive has a great influence on the design and development of highly innovative machine tools, which engineers strive to refine now and then.

Now, let’s talk about the employment opportunities that it brings with it. Being a part of this industry is a dream for most people. There are also so many career options in this industry as well. From auto technician jobs, store manager job, automotive mechanic jobs to automotive service manager jobs, there are so many that you can try for.

It is a thriving industry and it is attracting more and more diversified professionals. There are millions who are employed in this industry every year. You can try your luck if you are really interested.

By: Gaurav Dabhade

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