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Showing posts with label auto industry. Show all posts
Showing posts with label auto industry. Show all posts

January 12, 2017

3 reasons why tariffs on mexican cars wont solve trumps promise to generate more jobs

"cost comparison between a car manufactured in US vs mexico"
"cost advantage in building cars in mexico instead of united states"

President elect Donald Trump has a tough job on this hands. Generating jobs which remains  his is principle mandate and the  biggest  reason he feels he has been elected for will be an enormous challenge specially in the US auto sector. By threatening to  levy additional tariffs on cars produced in Mexico, Trump is calling for US car makers to continue to manufacture in United States. However as a recent bloomberg story shows it may be more free trade, not tariffs, that would help the U.S. keep some factory jobs from moving south.

Over the past five years, automakers have rushed to build factories in Mexico. The largest car companies have announced at least $22 billion in investments and about 25,000 jobs at new or expanded plants in Mexico by 2019. And that’s just the jobs that have been made public. 

So what do US car makers actually gain to have  manufacturing shipped off to mexico before being shipped to be sold to United States ?. Here  are 3 reasons why "US car makers are more favorably disposed to Mexico and rather build and manufacture cars there compared to US"

1) Cost of Labor :Cheaper labor is only one reason Mexico has seen a surge in new-car production. While the country’s low wages have been the big attraction, one of its key advantages is that it has is trade agreements.

2)Trade Agreements : Mexico has trade agreements with 44 countries, giving automakers access to half the global car market tariff-free.The U.S. has similar trade deals with just 20 countries, which make up 9% of global car sales, according to the Center for Automotive Research in Ann Arbor, Michigan."It’s pretty ironic that what makes Mexico successful is free trade," said Kristen Dziczek, an analyst at CAR "You can look at the new investment that has gone into Mexico and while a huge portion is for the U.S., they are selling a lot elsewhere, too."

3)Cost Arbitrage :To get a better sense of Mexico’s advantage, consider a $25,000 midsize sedan built and shipped in Mexico with one in the U.S. Automakers can pay.Total hourly compensation in the motor vehicle manufacturing sector is about 80 percent less for Mexican workers compared with that for U.S. workers. Considering assembly time for a typical midsize car, an automaker can save $600 per vehicle on labor costs.( see chart above)

While Infrastructure in Mexico lags behind the highway and rail network in the U.S., so it actually costs automakers $300 more per car in additional shipping expenses to produce the vehicle in Mexico and ship it to Europe, and an extra $900 to ship it to the U.S. That means, even after paying significantly less on labor, a car company is walking away with wage savings of only $300 per car,compared to it being manufactured in the US

Most importantly the bulk of the savings are tied to Mexico’s trade agreements and cheaper parts.Consider this! Automakers can save $1,500 per car on cheaper Mexican auto parts. Certainly, a lot of those savings are tied to the lower wages workers in Mexico are paid. But some of these parts are imported to Mexico tariff-free from countries in Europe and Asia, particularly for the foreign automakers who are increasingly investing in Mexico instead of the U.S. Since the U.S. doesn’t have as many free trade agreements, some of the automakers  need would pay extra for some of those parts if they made those models in the U.S which significantly increase the cost of production of cars in United States.  

December 28, 2016

toyota ,volkswagen and ford share the honors for the most sold cars in 2016

"toyota ,volkswagen and ford share the honors for the most sold cars in 2016"

Globally New passenger vehicle registrations increased in China, Europe, the USA, Japan, India and Russia but car sales were down in Brazil. For the first 6 months of the year Toyota seems to be moving to the top spot with over 634,298  cars sold in the first six months according to report compiled by Focus2move which tracked over 2,700 models sold in over 140 countries.

 As of January to November data in Europe 2016, new vehicle registrations in Europe were up by 7% to nearly 14 million cars – only around 300,000 shy of the total for the full year 2015..During the first eleven months of 2016, new passenger vehicle registrations in China increased by 18.6% to 21,058,400 cars – just over a million more than were sold during all of 2015.

Meanwhile in US New light vehicle sales in the USA increased by 3.7% in November 2016 after three consecutive months of contracting. The US market was helped by two extra sales days and strong incentives offered in Black Friday and Thanksgiving campaigns. The trend away from cars in favor of SUVs continued in the US in November 2016. Car sales were down 4% to 509,000 cars while light truck and SUV sales increased by 9% to 863,400 light vehicles.

Volkswagen Golf takes the 2nd position by selling 500,630 sales, a 1.8 percent increase, in 2016 which may or may not be blamed on the cheating emissions scandal that shook the automaker, while the 3rd place goes to Ford F-Series, with 478,394 deliveries, up 12.6%. The Ford also secured the fourth place too, with its Ford Focus compact delivering 367,479 units, down 16.4%, followed closely by the Hyundai Elantra which ranked as the fifth most sold  car in 2016, with 363,490 deliveries. The biggest move the chart has seen this year belongs to the latest Hyundai Tucson, which climbed 949 spots to the 16th place with its 285,060 sales, a massive 202.4 percent increase in popularity, compared to 94,267 units chosen by customers in the first half of 2015. 

Globally only three cars have been widely acknowledged as the "bestselling automobile in the world" since Ford built its millionth Model T on December 10, 1915. The Model T itself remained the highest seller until forty five years after production ceased in 1927. On February 17, 1972 Volkswagen claimed that the Ford had been superseded by the Beetle, when the 15,007,034th was manufactured.Although The Model T has subsequently been credited with 16.5 million units sold, this anomaly is moot in light of the Beetle reaching 21 million.The Beetle remained the bestselling vehicle until the late 1990s, when it was itself overtaken by the Toyota Corolla, which continues to be the number best selling card today even in 2016.

January 28, 2016

revenue wise rank of global auto suppliers : top 10 List

"leading auto component supplier list by revenues"

top 20  global auto component supplier list

The chart from statista shows global auto suppliers ranking by their revenue split.German companies continental and Bosch with automotive segment revenue of around 33.3 billion euros takes the top 2 ranking ,while Canadian company Magna ranked 3rd with around $30billion revenues .

November 22, 2015

UK car sales hits a new high since 2004,with Ford Fiesta among top seller

New car sales in UK reached a new high with registrations rising by 7% to 1.38m in the first six months of the year, marking the 40th month in a row of rising sales. Data from The Society of Motor Manufacturers and Traders (SMMT) showed that this figure was 324 higher than the previous record in the first half of 2004. In June, sales rose 12.9% to 257,817 vehicles.
The Ford Fiesta remained the top-selling car last month, as it has all year, selling 12,543 units in June and 71,990 in the year to date. Behind the Fiesta, the Vauxhall Corsa was the second best-selling car, with 9,561 unit sales in June and 50,125 in the year to date.

Best selling cars of 2015  in UK (so far): 1. Ford Fiesta: 71,990
2. Vauxhall Corsa: 50,125
3. Ford Focus: 45,078
 4. Volkswagen Golf: 38,261
5. Nissan Qashqai: 34,501
6. Vauxhall Astra: 29,966
7. Volkswagen Polo: 28,980
8. Audi A3: 25,765
9. Mercedes Benz C-Class: 24,676
10. Mini: 23,455

International car sales in 2015 set to grow to 73million

" global car sales since 2000 onwards"
Global car sales data : Between 2012 to 2015 international car sales grew by 13%  since 2012 . In 2015 global car sales is set to reach  73million. Earlier Global car sales  totaled  52 million in 2011, 65 million in 2012, 69 million in 2013. In 2014 this increased  to 71 million.

auto industry recalls : top 10 car makers with highest recall

General Motor  leads as  the number one brand with highest car recalls, with a record 8.4million car recalls in 2014  and 1.5million cars in 2010 for safety issues. Toyota recalled some 6.4million cars in 2014  and another 5.6million cars in 2010.Next in line with biggest recalls was Hyundai. Chrysler and Volkswagen  ranks  next with 2.7 and 2.4million car recalls

November 12, 2015

auto industry face off :Ford vs General Motors

Auto Industry Face off :Ford and General Motors 
 Ford's sales volume is estimated to be around $144billion as compared to General Motors sales volume of  $156 billion revenue
Ford's employees number 187,000 as compared to General Motors 216,000 Fords net income and market cap is to the tune of : $4.77 Billion and $59.1 Billion respectively as compared to GM's Net Income of $5.36 Billion Market Cap of $55.4billion

toyota and volkswagen among worlds bigger car makers by marketshare

The chart shows the worlds biggest top 10 car manufacturer by marketshare .

Toyota and Volkswagen with 11.6% and 11.1% respectively are the biggest OEM's followed by among worlds bigger car markers by marketshare, followed by  General Motors, with  8.2%.
The number 4th ranked is Ford with 7.6% led by the 5th ranked Honda Motors with 5.9%

how big is the auto components market by regional marketshare

Auto Components Suppliers breakdown by region. The automotive parts market in Europe was sized at approximately 160 billion euros in 2014. Statistic: Global automotive parts market value in 2014, by region (in billion euros) | Statista
source :Statista Auto Industry Suppliers :Global market for auto components   was sized at approximately 700 billion euros in 2014. 

November 8, 2015

Altanta based Top 10 best companies to work for

1)Delta Air Lines Inc. ranks No. 1 on the Top Employers list with more than 30,000 full-time employees in the metro Atlanta area. The major airline company, established in Atlanta in 1941, employs more than 80,000 employees companywide

2)Emory University lands again at No. 2  holding on to its position since last year with 24,090 full-time employees in Atlanta

3) Gwinnett County Public Schools ranks third having more than 20,000 full-time staff.

Among the fortune 500 companies
The Home Depot (Ranked 33): The world’s largest home improvement retailer is  headquartered in Atlanta, GA.  The biggest and greatest global brand coke ranked 63  is based out of  Atlanta
" the best companies to work for in Atlanta"
AT&T Inc with more than 16,794 employees at Atlanta also ranks number 1 as the Top Technology Employer at Atlanta
Atlanta is also some to some of the worlds best healthcare companies .Infact among the best companies to work in Atlanta several are across the healthcare verticals ,including Piedmont Healthcare (No. 6), Northside Hospital Inc. (No. 9), Children’s Healthcare of Atlanta (No. 10), Northeast Georgia Health System Inc. (No. 19), and Grady Health System (No. 21) with a combined total of more than 38,000 full-time employees. 

October 14, 2015

Tesla Motors list of awards in the auto industry

" auto industry and list of awards for TESLA car mfl Inspite of almost zero spends on advertising, its product Tesla model X received spectacular coverage across the mainstream mesi , Motors does no advertising at all, it is heavily covered in the press. And, since launching in 2012, the Tesla Model S has accumulated an astounding number of awards and accolades. In fact, THE NUMBER OF awards it has mindbogling

The infographics show the number of  awards shown by  So we decided to highlight our favorites over the past three years in an easy-to-digest in Tesla


August 27, 2015

The biggest 10 corporations which has been financially bailed out by US Government

" the top 25 corporations bailed out by US"
Which  American corporations are largest recipient of US Financial Bailout package

Top 10 corporations  which has benefitted from the U.S Government. Financial Bailout Package  ;

The above chart represents the list of 10 corporations who have been among the receipients of American government sponsored bailouts program. 
Heading the list  as the biggest recipient of US government bailout is Fannie Mae  with a $116 billion bailout package. However government aided bailouts or not, the company has a debt of $22 billion outstanding.The number 2 in the list is Freddie mac with a government bailout package of $71.3billion,,while  AIG is no 3 with a total bailout package of 
Till date the US Government has bailed out 951 corporations with a total disbursed bailout package amounting to $615B. Out o this $390B were returned back to the Government. The total Total revenues from dividends, interest, and other fees amounted to $283B Total disbursement


March 23, 2015

Auto Majors Ranked by online conversation and social sentiment index

Ranking the top 10 most social auto brands
source :blogworks

Toyota maintained its leadership position 3rd month in a row  ranks number one as the it led across social media sites including Facebook,Twitter and Blogs according to the latest data from Blogworks India auto social index.In terms of social sentiment index it garnered a whopping 93% positive reviews ,5% negative and 2% being neutral. Ford and Maruti Suzuki were  number 2 and number 3 respectively.

September 5, 2014

The Voice of the Car Consumers : How the web has changed user perceptions in auto buying

Consumer perceptions are being more shaped by the web and mobile, rather than what a " Car Salesmen would like you to believe. The web both play a disruptive and a constructive  role in auto purchase, depending on which side of the glass prism you are sitting on.

August 20, 2014

Customizing a car within 140 Characters:Acura luxury Sedans to be Twit-delivered

Customizing Your car online via a tweet .Digiday has posted a tweet, which shows ' what might be actually the first such case of using twitter to customize your 2015 TLX performance luxury sedan within a tweet 

Acura, which is the luxury division of Honda Motor Corp has been showcasing a launch of its digital campaign whereby yo can customize  is trumpeting the launch of the by letting you create a customized car, within Twitter in 4 steps 

Step 1 " Choose the Engine Type 206 HP 4 cylinder or 290 Hp V6
Step 2 Choose the drive train steer type  
Step 3 : Chose the  Color of yourAcura
Step 4 : Select the  2015 Acura model TLX and retweet to your friends

customise your car acura 2015 via twitter

Now customize your Acura car within a Twee

Acura is the luxury vehicle division of Japanese automaker Honda Motor Company. The brand has been available in the United States and Canada since March 1986, marketing luxury, performance, and high-performance vehicles.

July 30, 2014

Made in China vs Married and Divorced in China: Infographic

made in china vs  married and divorced in china

How does Made in China compare to Married and Divorced in China .This chart shows how the made in china automobile industry  graph is moving with marriages and divorces  graph
According to the latest  Chinese Passenger Vehicle sales figures..  January, 2013.had seen " the highest number of Chinese cars being  sold .
Now comparing this chart with the chart of marriages and divorces in the  country

Chinese marriages  have increased by 63% over the last 10 years, while divorces has increased by 133% in the same  number of years ( 2003 to 2012)

Similarly demand for r Green  cards from Chinese immigrants to United States has seen  an increasing uptrend  with a growth of nearly 100% from 562 in 2010  to  1202 in  2012 

March 25, 2013

Ford India Figo Ads Showing Gagged woman runs into Controversy

Ford India Ad: Car Company, Ad Agency Apologize For Figo Ad Showing Gagged & Bound Women (IMAGE): Ford Motor Company and the advertising firm WPP have issued apologies after mock ups of ads for the Ford Figo, a hatchback made in India, were posted online last week, Business Insider's Laura Stampler reports.

While three posters were uploaded to (and removed from) Ads of the World, the one that has perhaps received the most attention features caricatures of three scantily-clad women with their hands and feet bound and their mouths gagged. In the driver's seat -- looking back and flashing a peace sign -- is a grinning man who looks a lot like Silvio Berlusconi, the embattled former Prime Minister of Italy. (Berlusconi is, of course, not only known for throwing wild "bunga bunga" sex parties, but is facing charges of paying for sex with an underage woman.)
Another " Kardashians ad featured Paris Hilton "driving with the three sisters tied up in the back. The ad with Berlusconi shows him flashing the peace sign. The ads were meant to underscore the taglnie, "Leave Your Worries Behind."

 Ford issued a statement to CNBC apologizing for the ads: We deeply regret this incident and agree with our agency partners that it should have never happened. The posters are contrary to the standards of professionalism and decency within Ford and our agency partners. Together with our partners, we are reviewing approval and oversight processes to help ensure nothing like this ever happens again.