Review About Automotive Industry

Wiring harness is that versatile tool that is capable of meeting diverse requirements in all industry sectors. However, it finds special use in the automotive sector for exceptional automobile set-ups. The wiring harness used in the automobile industry is a durable solution that has the capacity to resist high temperature and is ductile in nature. These automotive wiring harness varieties are dimensionally accurate and hence are in wide demand across various automobile manufacturing set up.

Most of the manufacturers that deal with this cable harness variety ensure that they conform with the industry standards and you as a customer should only go for these ones to ensure safety. The best part about automotive wire harness is that they can be customized as per the requirements and specifications of the user like different color coding and the specifications etc.

All high-grade automotive cable harness varieties, find application for multiple purposes. They are used for ignition system, battery cables, AC, etc. in automobiles. Most of the manufacturers today fabricate these harnesses by using finest grade of materials. They are also stringently tested on each stage of fabrication to guarantee defect free harnesses. These types of harnesses are used for all types of vehicles like passenger cars, commercial vehicles, two wheelers and three wheelers, multi utility vehicles, farm, material handling equipment and off-the-road vehicles.

All harnesses for the automotive industry are designed to perform under extreme conditions with uninterrupted services and can hence sustain heavy loads. Apart from the standard ones there are special varieties like bus harness, truck harness along with wiring harnesses for four/two wheelers.

Among the various application areas where harness for automobile wiring is required includes power windows, horn relay and connector, dimmer switch connector, power door locks, circuit breaker for headlights, backup lights, ignition switch connectors horn, cigarette lighter, engine fan, radio battery, wipers, brake lights and many more. These harnesses are easy to install and are cost effective solutions to all kinds of electrical needs in automobiles. As per their requirements, these types of harnesses come in three different varieties viz; industrial automotive high, grade and standard wire harness.

Most of the manufacturers that produce or supply wiring harness also keep stock of other electrical tools like extension cord, and power supply cord, etc. that go well with any electrical or electronic appliances. Use these with locking plug for ultimate safety, as you would not want to risk the lives of your dear ones.

By: Suzie Williams

About the Author:

The rise in foreign investment has led to the rapid growth of automobile production, its export and developing of a more strong automobile industry. Overseas companies are making huge investments and are installing extensive production capacities in many developing countries. Today, the increase in the purchasing power and standards of living of people has resulted in the increased demand of automobiles especially four-wheelers in the developing nations. The fast pace of life and changes in lifestyles necessitates safer mobility for commuting to and from the work place and for traveling long distances. Research & development has resulted in increased productivity, better quality of automobiles and automotive accessories all across the globe. Low cost vehicles that are scooters and motorcycles have led to the massive growth of some of the fastest developing economies. The future of automotive industry in the developing countries seems bright and promising because of its further growth potential. Major automotive giants are shifting their production facilities to almost all emerging markets with the main purpose of gaining better access and reduction in their production costs.

According to the figures, South America and Asia have witnessed a boom in the past years. The various factors such as cheap financing and price discounts, rising income levels and infrastructure development have helped increasing the growth and development of automotive sector in the majority of developing countries around the world. The global automobile industry along with components and parts is expected to reach US$ 1.9 trillion by 2015, growth and it is thus evident that the economical potential of the auto industry is very high.

Reasons for the boost witnessed in the certain regions for the automobile industry are due to the availability of infrastructure facilities such like power supply, machinery, capital and availability of raw materials with efficient and relatively cheaper labor.

Auto motive industry is providing employment to a population of about 25 million people in the world. This industry not only provides millions of jobs to the people, but also produces billions of dollars in terms of worldwide revenues to many countries that are linked directly or indirectly with automobile industry. This industry is developing new markets worldwide but major shares still remain in the prominent automotive manufacturing regions. North American regions like New England, New York and the Mid-Atlantic, Central New York, Pittsburgh/Cleveland, Western Great Lakes, St. Lawrence Valley, Ohio and Eastern Indiana, Kanawha and middle Ohio Valley, St. Louis, the Southeastern region, Gulf Coast, Central Florida, and the West Coast are the major contributors towards the automotive industry in the USA. The European Union has the largest automotive production regions in the World. The key automobile manufacturing regions are United Kingdom, Rhine-Ruhr River Valley, Upper Rhine – Alsace – Lorraine region, and the Po Valley in Italy.

The global automotive component industry is highly diverse and comprises of various product segments like engine parts, drive transmission and steering parts, suspension & braking parts, electrical parts and other auto components parts.

By: Brenda Williams

About the Author:

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

About the Author:

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

About the Author:

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

About the Author:

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

About the Author:

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

About the Author:

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

About the Author:

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

About the Author:

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

About the Author: