Automotive Manufacturers Will Sell Where the Buyers Are - So Follow the Market Maturity
April 22, 2009
China Influence Grows With Car Sales | www.nytimes.com
As emerging market consumers grow their incomes, and as their countries grow their road infrastructure, the automotive companies will be there to provide vehicles. With very high populations in China, India, and Russia without vehicles, the markets are ripe for offering vehicles to those who have the income to purchase at all price points.
April 22, 2009
Chrysler CEO Says New Board Coming With Fiat Deal | www.nytimes.com
The U.S. Government in cooperation with the Senior Management of Fiat is going to appoint a new board of directors for this new joint company. Fiat is for all practical purposes a two market auto manufacturer; the home country…Italy (62%), and South America (38%). Chrysler LLC is a one market manufacturer in North America (72%) (Recognizing Graz, Austria (28%) for Minivans & Jeep). Respectively in those markets both companies loose money.
Support for Automotive Suppliers Means More Than Just Incidental Support for GM, Chrysler, and Ford
March 23, 2009
Auto Suppliers TARPed, But Questions Remain | www.forbes.com
Although it may not be transparent to many Americans, automotive Tier suppliers are usually linked to multiple OEM's. The failure of some of these Tier suppliers could interrupt component supply not only to GM and Chrysler, but to Toyota, Volkswagen, Nissan, Hyundai, and others. So, it is crucial that these suppliers are supported and find appropriate financing during these very tough economic times.
Automotive Tier–One Suppliers; North American Top 15… For Now!
March 5, 2009
GM’s Wagoner Meets With Auto Panel for Six Hours | www.bloomberg.com
In light of the current financial meltdown of the Global Automotive Market I looked at the North American sector to identify the specific commodities of vulnerability to the OEM’s.
March 2, 2009
GM’s Wagoner Meets With Auto Panel for Six Hours | www.bloomberg.com
Publications have used many adjectives over the years to describe the automotive tier one supply base; troubled, distressed, beleaguered, crippled, restructuring, etc... But the last six months it has interesting and painful to watch how the descriptions have progressively deteriorated to the most recent “unable to remain solvent”.
The End of Chrysler as We Have Known It
February 23, 2009
Chrysler Unlikely to Stand Alone | www.autonews.com
Chrysler has submitted a plan for a stand alone survival that is based upon the market yielding unrealistics sales, market share, and concessions from the supplier base. If Chrysler does have a partner moving forward, it makes more sense that it is Fiat, a Chinese manufacturer seeking a delaership and logistics network in the U.S. market. A GM merger makes the least sense, and most likely would mean further resource drain for GM.
GM / Ford – Restructuring “simplified”
February 6, 2009
GM, Ford Sales Collapse May Force Deeper Industry Restructuring | www.bloomberg.com
Restructuring plans are simple; “What do we design?”, “What do we engineer?”, “What do we manufacture?”, “What do we assemble?” Brand it, Market it, Sell it and get rid of the rest.
Honda's Announcement Is No Surprise - Now the Task Is To Identify the Best Positioned
February 2, 2009
Honda Lowers Profit Forecast for 4th Time | www.iht.com
Honda and most other OEM's will forecast lower sales and lower profits, if any, for 2009 and most likely 2010. The indicators of future success will be those OEM's remaining steadfast in their investment in fuel efficiency technology, hybrid technology, and globally positioned world car platforms. Not all OEM's will demonstrate this. Most likely, more brands will disappear in the next two years.
The Downturn in the Automotive Industry Will End, and the Survivors Can Be Predicted
January 12, 2009
U.S. Drivers Keep Autos Longer, Shun Showrooms on Job-Loss Risk | www.bloomberg.com
This article regarding automotive sales is very accurate. Consumer confidence in their income and wealth growth prospects drive automotive sales. But we can predict the OEM's and Tier Suppliers and technologies that will emerge as survivors and as investment potentials. Also, historically similar downturns are followed by a surge in replacement demand for new vehicles.
Is Honda going to save money by withdrawing from Formula One Racing
December 22, 2008
Honda quits F1 amid economic slowdown | nbcsports.msnbc.com
Honda is quitting! This is important news to the people that follow Formula One Racing throughout the world. Honda is giving up and taking their cars home to Japan. In the economic climate of today’s auto business this is probably a smart move by Honda. The reports say that they will save some six hundred million dollars by giving up the 2009 Formula One season. But money may not be the only reason for this pull back. Honda has not been winning. Winning is why a car company enters F-1 in the first place. Competitors such as Toyota have been finishing in the points and the Honda Teams were struggling. Honda engineers and the Honda Company take great pride in their winning racing heritage and lately that pride has been absent from Formula One Racing and that is why Honda is gone.
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