GLG News by Mr. Mark Fendley, Continuous Improvement Manager
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
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Magna Will Find Better Targets for Their Attention and Their Cash
November 6, 2009
Magna Ends Hunt for Automaker, Eyes Suppliers | www.autonews.com
Magna may have risked alienating certain customers, especially in regards to component technology development, if they had succeeded with the Opel partial purchase.Magna is developing good partnerships in the growth segments of electronic, software, sensor, battery, and power management, so a growing interest in shopping for those suppliers that can be added to Magna's electronics or eletrical component product portfolio makes very good sense.
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June 8, 2009
Ford to Face Tougher Rivals Following U.S. Rescue | online.wsj.com
The WSJ article focuses on the immediate and medium term financial improvement that GM and Chrysler will enjoy as a result of the U.S. taxpayer bailout. But this does not necessaily translate into sales. Toyota and Ford still have the potential to take significant market share from GM and Chrysler. If you can't sell the cars to consumers, then profits are not in the cards.
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May 4, 2009
Germany's Edscha to be Sold in 2-4 Months | uk.reuters.com
While we see most of the press regarding the fate of Chrysler and GM, there are many Tier suppliers to the automotive OEM's that will be transformed in the next several months as well. How can these targets for acquisition be best recognized?
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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.
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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.
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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.
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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.
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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.
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November 10, 2008
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?
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Renault's Move Is Right; Right Size the Company For Striking and Non-Striking Employees
September 16, 2008
Job Cuts at Renault Spark Strike | news.bbc.co.uk
As a result of soft sales, and soft volume projections, Renault must reach lower labor numbers through voluntary reductions. The pressures at Renault have been more intense than at other European OEM's as Carlos Ghosn applies pressure on vehicle development and launch timelines. The pressures, along with the labor reduction news, have reached a boiling point for the Renault employees.
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Carmakers Deserving of a Bailout? Taxpayers and Consumers Take Notice, it's Your Wallet
September 1, 2008
Carmakers Deserve Loan Guarantees, G.M. Official Says | www.nytimes.com
There are other mechanisms to achieve where GM, Ford, and Chrysler need to be in terms of technology and product. The loans will be little more than a taxpayer funded bailout. GM, Ford, and Chrylser have not learned from the ample lessons they have had in the past, what assurances are there that they will this time.
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Autloiv's Investment in Sensors Makes Good Sense
August 18, 2008
Autoliv to Acquire Radar Sensors Business of Tyco Electronics | www.tradingmarkets.com
Certain parts of the automotive passive and active safety original equipment market are moving towards commodity status, with volume being the key to future profitability. Tier One safety equipment suppliers must invest in those technologies that will bring greater value and margins.
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How Much Deeper and How Much More will GM and Ford Have to Cut to Right Size?
July 29, 2008
GM cuts truck shifts to meet lower output target | www.reuters.com
GM, and Ford, are the victims of too much focus on the American market, for far too long, at the expense of the world market. GM, and Ford, must continue to shift away from, and write down production and assets focused on truck and SUV production. How much will GM and Ford have to give up, to survive?
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July 21, 2008
Toyota to make Prius, not SUV, at new US Plant | www.reuters.com
Toyota's announcement that the new Mississippi facility will produce the Prius is a smaret decision to increase capacity for a marketable product, with variant potential for the future. Toyota's temporary suspension of production in Indiana and Texas to reconfigure the plants for greater product flexibility is a model already proven to be a smart capital investment strategy by Nissan and BMW. Toyota is also indicating with this article a philosophy for world cars, as demonstrated by Prius production for other markets.
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June 30, 2008
AUTO-PARTS FIRMS FACE TROUBLE AS CAR MAKERS RETOOL PRODUCTION | www.aemag.com
With the downturn in US sales volumes and a rapid switch from SUV and light truck to smaller, more fuel efficient cars the Big Three are taking some of the Tier One suppliers down with them. Those that are diversifed in terms of product, geography, and model mix are the most well positioned to ride out the storm. Johnson Controls is one of those companies positioned well to maintain and to grow in the current, difficult market.
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Ibiquity Has Significant Potential That Will Be Realized Through HD Radio
June 9, 2008
Pumping Up the Volume: HD Radio Touts Price Cuts | www.investors.com
The new price point for HD receivers will mean signicantly more volume of units in automotive OEM applications, potentially surpassing one million units installed in OEM applications by early 2009. Unlike Sirius and XM, Ibiqiuty's HD radio is finding an audience in Asia and in Europe. Ibiquity is entering into unique partnerships with Apple and Navteq, that will enhance the functionality of HD radio.
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Volkswagen Announcement in July Will Be a Bright Spot in an Otherwise Gloomy Automotive Mont
June 9, 2008
Decision on VW plant still on track for July announcement | www.chicagotribune.com
Volkswagen recognizes they have to produce in the US to growth the US market share. The same formula has worked for the other German, Japanese, and Korean transplants. Expect the factory to be flexible enough to produce both Volkswagen and Audi products, since they share platform and powertrain components. Also, expect the factory to be positioned as an export center for VW and Audi products produced with US components with a US dollar basis.
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The North American Automotive Industry Is Not a Dot.com Bubble; There is a Growth Strategy
May 22, 2008
Car Makers' Boom Years Now Look Like a Bubble | online.wsj.com
Autmotive OEM's have saturated the US market, and now must ride out the economic downturn. The astute OEM's are right-sizing for the US market,and the wisest among them are using US capacity to support the explosive growth of sales in China, Russia, India, and Brasil. What should emerge are more OEM US manufacturing operations that are supporting world car platforms. US factories could become significant exporters of certain models.
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Freescale Is On A Roll In Multiple Automotive Markets and Applications
May 16, 2008
Freescale, Chery Team Up to Develop Automotive Electronics Technology in China | techon.nikkeibp.co.jp
The alliance of Freescale and Chery to develop MCU and chipset technology means tremendous potential for Freescale growth in Asia. Freescale's recent acquisition of SigmaTel could give Freescale an avenue to grow share of automotive multimedia and infotainment chipset applications. Freescale is well positioned to continue to be the dominant semiconductor supplier to the worldwide automotive market, driven by continued strong demand for chipsets for new applications, resulting in greater numbers of chipsets per vehicle, and strong vehicle unit sales in Asia and in Eastern Europe.
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Carlos Ghosn is "Dead-On" In His Assessment of Both Foreign and Domestic Automotive Market Growth
May 5, 2008
Russia's Car Market Will Pass Germany's In Two Years Says Ghosn | goldsea.com
The significance or the emerging markets in Russia, India, China, and Brazil should not be underestimated by any automotive OEM who wants to experience significant growth in the future. In addition, the implication that raw material sourcing and pricing as well as manufacturing and logisitcs cost control will be the focus of tremendous OEM attention is accurate. Finally, the prediction that U.S. sales will remain flat and will shift in types of vehicles sold should prove true.
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