GLG News by Experts in the Automotive Council

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

Honda's Announcement Is No Surprise - Now the Task Is To Identify the Best Positioned

February 2, 2009

Analysis of: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.

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

The real reason we are failing

January 28, 2009

Analysis of:Circuit City to liquidate remaining US stores | www.businessweek.com

We need to measure differently. We need to reward differently. Our present system does not work anymore and is tilted out of control.

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

The Downturn in the Automotive Industry Will End, and the Survivors Can Be Predicted

January 12, 2009

Analysis of: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.

Michael CainPresident / ConsultantMFC Consulting

Is Honda going to save money by withdrawing from Formula One Racing

December 22, 2008

Analysis of: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. 

Robert BartonPresident,Chief Operating OfficerFRANCHISE SERVICES OF NORTH AMERICA INC

If you bailout the manufacturers, you better open up the credit markets so cars can be bought.

December 17, 2008

Analysis of:Democrats Claim Agreement On Auto Rescue Deal | online.wsj.com

The following is the text of a letter I penned and sent to Washington this past monday in my capacity as President of the American Car Rental Industry

Robert BartonPresident,Chief Operating OfficerFRANCHISE SERVICES OF NORTH AMERICA INC

Shrinking is good, but is it enough?

December 8, 2008

Analysis of:Pursuing U.S. Aid G.M. Accepts Need For Drastic Cuts | www.nytimes.com

Fixing the manufacturing process is simply not enough Clearing the pipeline to allow for product distribution upon completion is critical

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

Bail them Out, But!!

November 12, 2008

Analysis of:The Breakfast Wars: Starbucks Learns to Cook | www.nytimes.com

  The article in the news today about the reduction of health care benefits planned for GM salaried retirees is very sad .We are talking about folks in their seventies and eighties who gave their lives to the company. People who were told almost annually that the size of their wage increases reflected the money that must be set aside to provide health care for them in retirement. I have always been a strong supporter of our free enterprize system. I find it very saddening to watch so many lives being destroyed because of greedy inept management and leaders. These leaders now asking for a huge government bail out are the same ones who have destroyed a once great icon of American industry.  . I say “Bail them Out”, but make sure that the entire top layer of management is gone and the board that supported their failed strategies with them. 

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC

Do Any of America's Big Three Automotive Companies Have the Staying Power and Product Pipeline to Make It To Better Times?

November 10, 2008

Analysis of:Running on Fumes: GM could soon run out of cash | www.forbes.com

Detroit's Big Three have several obstacles to overcome; the question is will they have the ability to withstand this perfect storm? Consumer confidence is shaken, financing is impossible or difficult, product mix doesn't meet market demands, alternative energy development and emission compliance is tremendously expensive, and the cutbacks and draw downs affect employee morale and leads to a loss of talent. Who, if any, will survive as a stand alone company?

Michael CainPresident / ConsultantMFC Consulting

Timing is Everything

October 15, 2008

Analysis of:G.M. and Chrysler Explore Merger | www.nytimes.com

The idea of GM buying out Chrysler is an exciting idea.  GM was willing to pay up to five billion dollars for the Jeep Division just a few years ago.  Imagine a Cadillac with a Hemi engine and so on.  Both companies would benefit from this merger and it would be an exciting time in the industry.  The elimination of two corporate offices and personnel departments and technology centers and testing and under utilized plants and etc. would be great for the business and would lower the cost of building autos and trucks.  This would be a good idea in normal times, but we are not in normal times and this merger should not happen for GM to succeed in 2010.

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

GM-Chrysler Merger. Will it work?

October 14, 2008

Analysis of:G.M. and Chrysler Explore Merger | www.nytimes.com

Leadership at the top will just double the problem with the merger.

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