GLG News by Experts in the Automotive Council

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

The Global Insight prediction is accurate, outside of the required investment.

October 22, 2007

Analysis of:Congress Wants Green Trucks. Do Buyers? | www.businessweek.com

The use of diesel technolgy, combined with turbocharging to maintain horsepower and torque, will become more common place. The combination of regenerative technology and smart cylinder deactivation will be utilized to a greater extent. The use of battery technology as a supplement and not as a stnad alone power source will be the reality.

Michael KowalskiConsultantMichael Kowalski

Does Ford really have a brighter future than General Motoers?

October 16, 2007

Analysis of:CORRECT: GM cut at Bear Stearns, Ford preferred | www.marketwatch.com

The decision by Bear Sterns to recommend Ford Motor Company over General Motors seems very misguided to me. Ford is literally just beginning its turn around efforts and they may not save the company. General Moors has already taken many steps of cost reduction and new product introductions and moreover is investing in many new powertrain technologies for coming years that Ford will find difficult if not impossible to duplicate. I expect GM to benefit and Ford to suffer as a result.

James "Jim" RippyFormer Senior Vice President of OperationsCONTINENTAL TIRE THE AMERICAS, LLC.

GM Purchasing never changes

October 10, 2007

Analysis of:GM looks to substitute materials to reduce costs: Purchasing VP calls price increases "scary" and outlines upcoming plans | www.purchasing.com

GM continues their attempts to restore profitability from the "hides" of their suppliers. Their purchasing department over the years has been a true deterrent to their success. Their recent statements are reminders of the Jack Smith and Ignatio Lopez era. Some of the supplier executives will remember the teams that GM would send to their factories supposedly to assist in improving the suppliers efficiency and reducing the price to GM. What a farce! They should have been visiting their top suppliers to learn how to be more efficient at GM. These programs only covered up the lack of leadership and management capability at GM. They have never learned how to partner with their suppliers to reduce cost for mutual success. They continue to use fear in their supplier relationships. Statements that commodity prices are scary and material substitutions are being considered by GM purchasing only re-inforces that their methods are stuck in a time-warp just like their performance of the past

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

Harman Has a Future Beyond Premium Audio

September 24, 2007

Analysis of:Harman Has a Future Beyond Premium Audio | www.financialweek.com

Harman International is not a one dimensional company. As automotive electronic content, especially infotainment and computing related, continues to grow, Harman has the potential to exploit software and video know-how and product.

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

Diesel Offers a Potential Stop Gap if the Infrastruture Supports it.

September 21, 2007

Analysis of:European Carmakers Bet That the U.S. is Ready for Diesel | www.nytimes.com

Diesel Technology can provide significant increases in fuel economy. Diesel in combination with hybrid technology is a natural part of the progression towards altentive fuels. The OEMs and Tier suppliers will continue to exploit technologies that will allow incremental improvements in fuel economy until truly viable energy alternatives are in place.

Michael KowalskiConsultantMichael Kowalski

Bad Decision at Ford?

September 14, 2007

Analysis of:Volvo ReCharge concept plugs into hybrids | www.autonews.com

Volvo has shown a concept hybrid powertrain in a modified C30 vehicle, quite similar to the design that General Motors showed earlier this year at the North American Automotive show in Detroit. This technology when fully developed will be able to substantially improve fuel economy and drastically reduce vehicle emissions. However this appears to be a Volvo effort and is not part of a wider Ford Motor Car Company program.

James "Jim" RippyFormer Senior Vice President of OperationsCONTINENTAL TIRE THE AMERICAS, LLC.

They just don't get it!

August 31, 2007

Analysis of:Ford, GM propose health care fund to union | www.autonews.com

Any agreement on health care funding is only a short term fix. We are the only developed nation in the world that does not supply universal health care to their citizens. Health care cost's have doubled in the past decade with relatively tame overall inflation. We need universal care with a single payer system. There is no justifiable reason for the increases in health care cost to such astromomical levels. This factor affects the ability of the auto maker's to compete with contries that provide health care as a birthright, ratheer than a service. Not only does our system continue to drive manufacturing off-shore, it is morally wrong to have 50 million people without health care access. We have thousands of people who die each year for lack of access to quality health care. Rather than negotitiation to fund a broken system, we need to jointly ask our politicians why we cannot have a system like France, Germany, Canada, United Kingdom, Sweden etc. We are ranked 37th in health care.

Michael KowalskiConsultantMichael Kowalski

Who is responsible for the failure of Chinese aftermarket replacement tires?

June 29, 2007

Analysis of:Accident Raises Safety Concerns on Chinese Tires | online.wsj.com

Quality of Chinese manufactured products is a hot topic these days.  The safety of pet food ingredients is just a recent example.  The Chinese seem able to avoid international standards for safety and quality, instead focusing on price and volumes.  Tire failures are just another example.  Radial tire manufacturing requires a skilled operator to build a good tire, assuming that good design and quality materials are used.  A deficiency in any of these three areas can lead to the tread separation failures reported.  Clearly the manufacturer of the vehicle experiencing a tire failure with these aftermarket replacement tires is not responsible for the problem.  However they make an easier target than Chinese manufactures, and litigation motivated lawyers will go after the automotive manufacturers as they have the deepest pockets.  Who can predict the outcome of the litigation that is sure to follow these tire failures?

Michael KowalskiConsultantMichael Kowalski

Chrysler’s future hangs on the next United Automotive Workers contract agreement

May 17, 2007

Analysis of:Union Cracks in Chrysler Deal | www.thestreet.com

The purchase of a majority stake in Chrysler by Cerbus Capital Management signals a chance of another Chrysler resurrection. This will require an accommodative new contract with the United Auto Workers union and massive changes to Chrysler’s business. The initial response from the union is constructive, however many difficult issues will be on the bargaining table this fall, not only at Chrysler but at Ford and General Motors as well.  

Michael KowalskiConsultantMichael Kowalski

The Future of Chysler operations sill uncertain

May 3, 2007

Analysis of:Magna out front in bid to buy Chrysler Group, analysts say | www.thestar.com

While the take over of Chrysler by Daimler was ill conceived and a poor business judgment, current issues in the market could provide a rationale for continuing joint operations to the benefit of both parts of the organization. However Daimler does not appear to have the tenacity to make the Chrysler operations a success and is anxious to unload them. Magna probably has the next best shot, but it is in competition with other bidders who would dismantle the company by selling off the parts. While the UAW may be willing to offer Magna concessions to save their jobs, it is still uncertain how this all will evolve.

 

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