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Showing posts with label car brands. Show all posts
Showing posts with label car brands. 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 23, 2016

tesla releases video of its self driven enhanced autopilot car

Elon Musk is promising to give a fantastic holiday gift to those  who have the patience to wait. Tesla's CEO tweeted Thursday night that it "Looks like we might be ready to rollout most of Autopilot functionality for HW2 towards the end of next week." Musk is referring to new self driven car models built from October on that contain the hardware capable of full-on autonomous driving as part of its Enhanced Autopilot driver assist feature. None of the systems were to enabled, however, until a yet to be announced December date, which now looks to be during the week between Christmas and New Years'.The rollout is expected to be incremental, first enabling safety systems like adaptive cruise control and autonomous emergency braking. This brings Tesla's new Model X and Model S vehicles in line with the older Teslas currently on the road. 

If you want to see what it's all about, here's a video from Tesla  shown above which showcasses Tesla's Autopilot's ability to drive itself around town, responding to stop signs and other traffic, making turns and cruising around town.All new Tesla vehicles come with the hardware to support full-on, hands-off autonomous driving, even though it's not yet enabled. But a new video from Tesla now shows us exactly what it will it look like once it's enabled. The automaker released a video showcasing Autopilot's ability to drive itself around town, responding to stop signs and other traffic, making turns and cruising down the road. The original video was sped up,

December 15, 2016

google to take on uber as its driverless car project is shelved

"google self drive car is on the backburner"
Google  is  backing off from manufacturing self driven cars. It had  earlier Touted its autonomous self driven cars as the technology of the future.

In the summer of 2015, Google experimented its self drive car with a blind man, Steve Mahan, had “driven”, unaccompanied, one of its Koala cars on the public roads of Austin, Texas. That trip was the world’s first fully driverless trip on public roads..

Google is stepping back from its " highly ambitious self driving card project. According to recent reports Google Parent company Alphabet has shelved its long-standing plan to develop its own autonomous vehicle in favor of pursuing partnerships with existing car makers.Google’s self-driving cars which had sprung up from its “moonshot division”, X labs, had become a full-blown subsidiary of umbrella group Alphabet, called Waymo. The new company, headed by X alumni John Krafcik, was assigned with " creating self-driving car technology that Google has been developing behind closed doors into a viable business for the future. However it seems Google's plan to creating self driven cars is in a limbo and have been tucked away in the deep freezer.

The One thing Waymo won’t be doing is building its own cars – a step back in ambition from the highest goals of the X labs team. “We are a self-driving technology company,” Krafcik said. “We’ve been really clear that we’re not a car company, although there’s been some confusion on that point. We’re not in the business of making better cars. We’re in the business of making better drivers Now those who have followed Google's self driven car ambition, might find this to be a  complete U turn .

Google has it first set out to reinvent " self driving , by doing away with the steering wheel and pedals however it backtracked on this after after CEO Larry Page and CFO Ruth Porat, found the original approach to be “impractical,” according to Techcrunch

That’s in spite of  Google’s autonomous vehicles clocking over two million miles of tests on public roads. Meanwhile a recent confidential news was leaked that Google has long been rumored to move into the on-demand car space — it offers carpooling via its Waze business — and this would bring it into direct competition with Uber.Uber began trialing self-driving taxis in Pittsburgh this year, while another, younger company, Nutonomy, is conducting similar tests in Singapore and Boston..and Google believe that" Car Hailing space" is just the right segment where it can  innovate with service operators and provide better experience to consumers

So for consumers who wanted to drive the " Google Car" you can forget about it.Apparently the best hope for someone who wants to get their hands on Google’s software looks to be Fiat Chrysler, who signed a deal with Google in May to put its self-driving tech in a small fleet of the company’s Pacifica minivans. If that deal expands into a full-blown partnership, Fiat Chrysler could be the first company selling Google tech to end users. 

One of the biggest reason why Google has putting its automated self driven cars on the backburner seems to be its insistence on pursuing full automation.“The system we have built is aimed at full autonomy, and it is therefore much more complicated than a lot of these other systems,” X labs engineer Andrew Chatham told the Guardian 

January 9, 2016

5 companies across industry with highest RD spends

The companies that spends highest on research and development across industries

For the third year in a row, the German car maker  Volkswagen tops the Strategy& list of research and development spenders.Volkswagen R&D spending in 2013 was  $13.5 billion
As a percentage of total revenue, the company spends 5.3% on Research and Development

 Samsung  R&D spending in 2013: $13.4 billion
As a percentage of revenue: 6.4%

 Intel's R&D spending in 2013 was  $10.6 billion
 As a percentage of revenue: 20.1%

 Microsoft R&D spending in 2013 was $10.4 billion
 As a percentage of revenue: 13.4%

 Pharma brand Roche  R&D spending in 2013 was  $10 billion
 As a percentage of revenue the company spends 19%

 Pharma company Novartis R&D spending in 2013: $9.9 billion
 As a percentage of revenue: 16.8%

 Toyota  R&D spending in 2013: $9.1 billion
 As a percentage of revenue: 3.5%

 Johnson and Johnson R&D spending in 2013: $8.2 billion
As a percentage of revenue: 11.5%

November 22, 2015

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

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%

July 17, 2011