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Thai car industry eyes SA venture

A worker on a car assembly line. iAFP PHOTO/i
A worker on a car assembly line. AFP PHOTO

The Thai automotive industry has expressed interest in partnering and forming joint ventures with South African companies, says the Department of Trade and Industry (dti).

In a statement on Tuesday, the dti said that the Thailand Automotive Parts Manufacturers Association (TAPMA) has shown interest in partnering and forming joint ventures with their South African counterparts in order to grow the sector in both countries.

A South African business delegation arrived in Thailand for an Outward Selling and Investment Mission (OSIM) that kicked off, on Monday, in Bangkok. OSIM is profiling South Africa as an investment destination of choice.

The business delegation, on Tuesday, embarked on a site visit to the Thai automotive body parts manufacturers, Somboon Advanced Groups Plant and Summit Auto Body Plant, outside Bangkok.

TAPMA President Achana Limpaitoon committed to future collaboration with South African automotive exporters.

She said the Thailand Automotive Industry had gone through years of a challenging struggle but had managed to achieve noticeable successes.

“The industry is now going for higher regional and global competition, and I do hope for more collaboration in future for Thailand and South Africa,” she said.

Limpaitoon said she believed this visit would lead to exchange of ideas, transfer of skills and technology that would benefit Thailand and South Africa.

Managing Director of Durban based company Microfinish, Deshan Naidoo, who took part in the site visit, said there were plenty of opportunities for partnerships and joint ventures both in Thailand and South Africa.

“The technology currently used in the Asian market is at an advantage and has improved over the years. This is what we want to take advantage of and learn from our counterparts,” said Naidoo, whose company manufactures automotive valve guides and valve seat inserts.
Naidoo added that the partnership will allow them to improve their international competitiveness and give them an opportunity to market their products in other markets.

In his budget Vote, earlier this month, dti Minister Rob Davies said the automotive sector formed part of the key sector identified job drivers in the country. The department has allocated R7.9-billion for capital expenditure through the Automotive Production Development Programme (APDP).

Total trade between Thailand and South Africa was R31.1-billion in 2013; with a trade balance of R22-billion in favour of Thailand.
South African exports to Thailand totalled R4.6-billion, while imports totalled R26.5-billion in the same year. South Africa mainly source special classification products such as vehicle parts which constitute 45% of imports.

The OSIM concludes today.

SAnews

Article source: http://www.iafrica.com/articles/952122.html

Morgan Stanley: Auto Industry Is Peaking

As more capacity comes online and low payments pull purchases forward, now could be the time to reduce exposure

Ford Motor Company (NYSE:F) has posted nearly 12% margins and General Motors Company (NYSE:GM) has posted 9.2% (excluding recall costs) for the second quarter while seasonally adjusted annual rates (SAAR) have passed 17 million, setting new highs for SAAR value. But Morgan Stanley analysts Adam Jonas, Ravi Shanker, and Paresh Jain argue that now is a good time to start selling major auto companies because these numbers could be borrowing from future demand.

Ford Auto Industry

“We get asked about the possibility of 18, 19, even 20 million SAAR on a daily basis now… the US auto cycle has clearly moved from a ‘need to buy,’ to an ‘I just want to buy’ type of consumer mindset,” they write in July 29 report. “Forgive our contrarian instincts if this alignment of factors makes us want to head in the opposite direction.”

Auto industry: Low payments could be stealing future demand

The reason they see problems on the horizon is that current sales are getting pumped up by low monthly costs. It’s not just that interest rates in general are low, extended loan maturities and higher residuals (which make it cheaper to lease) are both being used to keep payments low and move stock.

“Consumers buy cars like they buy houses – lower payment, bigger car. There is a dark side to all this,” write Jonas, Shanker, and Jain.

Last quarter’s margins are partially due to 90% – 95% capacity utilization, which isn’t going to last with new capacity coming online in the next few years. The Morgan Stanley report estimates that 130% of the North American capacity reduced through 2010 because of the recession will be back by 2016, while Ford, Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203), and Volkswagen AG (OTCMKTS:VLKAY) (ETR:VOW) are all talking about higher capex spending.

Finally, they see risks to the auto industry in China after an antitrust campaign caused Jaguar Land Rover to cut prices by 5% – 10%, followed by Audi’s decision to reduce spare part prices in China by more than a third.

“We expect similar voluntary downward adjustments for prices of GM and Ford products offered to Chinese consumers, currently at a significant premium to US prices,” they write.

Auto Industry: Autonomous car/software plays

While they recommend reducing exposure to mass market auto manufacturers, Jonas, Shanker, and Jain see room for a play on high tech suppliers as autonomous cars become a more important part of the market. Automation is already on the upswing, and they expect to see big shifts in the industry as software becomes a bigger component of a car’s value. They recommend Delphi Automotive (NYSE:DLPH), TRW Automotive Holdings (NYSE:TRW), and BorgWarner Inc. (NYSE:BWA) as strong secular picks.

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Article source: http://www.valuewalk.com/2014/07/morgan-stanley-argues-auto-industry-peaking/

Texas Instruments surpasses shipment of 15 million SoCs enabling the …


DALLAS, July 30, 2014 /PRNewswire/ – Confirming a leadership position in the automotive market, today Texas Instruments (TI)

/quotes/zigman/7971332/delayed/quotes/nls/txn TXN
+0.98%


announces that more than 15 million of TI’s advanced driver assistance systems (ADAS)
System-on-Chip (SoC) devices are on the road. TI’s open and flexible solutions are in series production in over 25 OEMs and over 100 car models, and are designed to help reduce the number of road collisions and enable more autonomous driving experiences.  With common hardware and software architecture across camera based front (mono and stereo), rear, surround view and night vision applications, as well as mid- and long-range radar and sensor fusion systems, TI’s scalable solutions allow for reuse and reduced time and cost to market. Leveraging more than 30 years in signal processing, safety and automotive experience, TI developed the TDAx family of SoC processors to enable customers to further drive innovation and differentiation in ADAS applications.   

Market leader, designing award winning innovative ADAS solutions
Based on its recent analysis of the ADAS market, Frost Sullivan recognized TI with the 2014 Product Leadership Award for Semiconductor Solutions for ADAS Industry. TI has developed the automotive System-on-Chip (SoC) family, the TDA2x, incorporating an innovative Vision AccelerationPac with features to help customers create next-generation ADAS solutions. Additionally, Frost Sullivan also provided best-in-class ranking for TDA2x in management vision alignment, process design and technological sophistication indicating a comprehensive superior solution.

Providing an open, flexible platform enabling innovation and differentiation
Unlike other solutions in the market today, the TDA2x offers an open platform enabling customers the flexibility to add their unique value.  The TDA2x offers one-architecture for high performance to entry-level solutions in front camera, park assist and radar/fusion applications reducing investment and time to market for the customer. Specifically, TDA2x combines the optimal mix of high performance, vision analytics, video, graphics and general purpose processing cores in a low-power envelope enabling a broad range of ADAS applications scaling from entry to high performance. Additionally, the Vision AccelerationPac delivers a more than 8x compute performance at the same power budget for advanced vision analytics in a more cost-effective footprint.  

“TI’s rich heritage in automotive ADAS-related application development allows the company to understand and address key goals in the automotive market,” said Arunprasad Nandakumar, Research Analyst, Frost Sullivan. “The TDA2x family is aligned to meet the challenges posted by various ADAS technologies and will be instrumental in enabling customers to achieve their goal of an autonomous vehicle.”

ISO 26262 Functional Safety Deliverables
The TDA2x is under development respecting the relevant requirements of ISO 26262 functional safety standard.  Supporting safety documentation will be available to customers upon device PPAP and release.

Pricing and availability
TI’s TDA2x is currently sampling and is intended for high-volume automotive manufacturers. Please contact your local TI sales representative for more information.

For more information

Texas Instruments drives automotive innovation
TI’s state-of-the-art semiconductor products allow manufacturers and system suppliers to deliver world-class features to the automotive market. Our extensive automotive portfolio includes analog power management, interface and signal chain solutions, along with DLP® displays, ADAS and infotainment processors, Hercules™ TMS570 safety microcontrollers and wireless connectivity solutions. TI offers SafeTI™ parts designed to facilitate OEMs’ compliance with the requirements of ISO 26262, as well as parts specifically designated as compliant with the AEC-Q100 and TS16949 standards, all with excellent product documentation. Visit TI’s Automotive page
or TI’s E2E™ Behind the Wheel
Blog to learn more about our commitment to automotive innovation. 

About Texas Instruments
Texas Instruments Incorporated (TI) is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. By employing the world’s brightest minds, TI creates innovations that shape the future of technology. TI is helping more than 100,000 customers transform the future, today. Learn more at www.ti.com
.

Trademarks
All trademarks are the property of their respective owners.

SOURCE Texas Instruments Incorporated (TI)

Copyright (C) 2014 PR Newswire. All rights reserved

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Article source: http://www.marketwatch.com/story/texas-instruments-surpasses-shipment-of-15-million-socs-enabling-the-automotive-industry-to-redefine-advanced-driver-assistance-systems-2014-07-30

Global Industrial Automation Market in the Automotive Industry 2014-2018








NEW YORK, July 29, 2014 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:

Global Industrial Automation Market in the Automotive Industry 2014-2018

http://www.reportlinker.com/p02183874/Global-Industrial-Automation-Market-in-the-Automotive-Industry-2014-2018.html

About Industrial Automation
An industrial automation solution helps organizations, especially those in process and discrete industries, optimize their business operations by effectively controlling various processes. Industrial automation solutions include seven major types: industrial robotics, industrial sensors, DCS, PLC, MES, and SCADA. These automation solutions enhance organizational efficiency by facilitating uninterrupted system operations. In addition, they help companies by providing real-time information, which improves the efficiency of the entire plant and thereby reduces the total cost of ownership.
TechNavio’s analysts forecast the Global Industrial Automation market in the Automotive industry will grow at a CAGR of 8.25 percent over the period 2013-2018.

Covered in this Report

The Global Industrial Automation market in the Automotive industry can be divided into seven segments:, DCS, MES, Industrial Robotics , Industrial Sensors, PLC, PLM, and SCADA , , , and.
TechNavio’s report, the Global Industrial Automation Market in the Automotive industry 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the APAC and EMEA regions, and the Americas; it also covers the Global Industrial Automation market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.

Key Regions

- APAC
- EMEA
- Americas

Key Vendors

- ABB Ltd.
- Rockwell Automation, Inc.
- Siemens AG

Other Prominent Vendors

- dept Technology, Inc.
- Applied Material, Inc.
- Apriso Corp.
- Aspen Technologies, Inc.
- Aurotek Corp.
- Axium, Inc.
- Camstar Systems, Inc.
- Control Systems International, Inc.
- Daihen Corp.
- Denso wave, Inc.
- Ellison Technologies, Inc.
- Emerson Electric Co.
- Eyelite, Inc.
- Fanuc Corp.
- GE Co.
- Invensys plc
- Kawasaki Robotics, Inc.
- Kuka Ag
- Metso Corp.
- Miracom, Inc.
- Mitsubishi Electric Corp.
- Mitsubishi Heavy Industries Ltd
- Nachi Fujikoshi Corp.
- Omron Corp.
- SAP AG
- Schneider Electric SA
- Toshiba International Corp.
- Werum Software Systems AG
- Yaskawa Electric Corp.
- Yokogawa Electric Corp.

Key Market Driver

- Need for Improved Productivity.
- For a full, detailed list, view our report.

Key Market Challenge

- Reluctance among End-users to Migrate to Latest Technology.
- For a full, detailed list, view our report.

Key Market Trend

- Increased Availability of Wireless Sensor Networking Solutions.
- For a full, detailed list, view our report.

Key Questions Answered in this Report

- What will the market size be in 2018 and what will the growth rate be?
- What are the key market trends?
- What is driving this market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the key vendors?
- What are the strengths and weaknesses of the key vendors?
You can request one free hour of our analyst’s time when you purchase this market report. Details are provided within the report.

01. Executive Summary
02. List of Abbreviations
03. Scope of the Report
03.1 Product Offerings
04. Market Research Methodology
04.1 Market Research Process
04.2 Research Methodology
05. Introduction
06. Market Landscape
06.1 Market Size and Forecast
06.2 Five Forces Analysis
07. Market Segmentation by Product
07.1 Global PLM Market in the Automotive Industry
07.1.1 Market Size and Forecast
07.2 Global Industrial Sensors Market in the Automotive Industry
07.2.1 Market Size and Forecast
07.3 Global Industrial Robotics Market in the Automotive Industry
07.3.1 Market Size and Forecast
07.4 Global DCS Market in the Automotive Industry
07.4.1 Market Size and Forecast
07.5 Global PLC Market in the Automotive Industry
07.5.1 Market Size and Forecast
07.6 Global MES Market in the Automotive Industry
07.6.1 Market Size and Forecast
07.7 Global SCADA Market in the Automotive Industry
07.7.1 Market Size and Forecast
08. Geographical Segmentation
08.1 Industrial Automation Market in the Automotive Industry in the APAC Region
08.1.1 Market Size and Forecast
08.2 Industrial Automation Market in the Automotive Industry in the Americas
08.2.1 Market Size and Forecast
08.3 Industrial Automation Market in the Automotive Industry in the EMEA Region
08.3.1 Market Size and Forecast
09. Key Leading Countries
09.1 Industrial Automation Market in the Power Industry in China
09.1.1 Market Size and Forecast
09.2 Industrial Automation Market in the Automotive Industry in the US
09.2.1 Market Size and Forecast
09.3 Industrial Automation Market in the Automotive Industry in Japan
09.3.1 Market Size and Forecast
09.4 Industrial Automation Market in the Automotive Industry in Germany
09.4.1 Market Size and Forecast
10. Buying Criteria
11. Market Growth Drivers
12. Drivers and their Impact
13. Market Challenges
14. Impact of Drivers and Challenges
15. Market Trends
16. Trends and their Impact
17. Vendor Landscape
17.1.1 Key News
17.1.2 Key Acquisitions
17.2 Market Share Analysis 2013
17.3 Other Prominent Vendors
18. Key Vendor Analysis
18.1 ABB Ltd
18.1.1 Business Overview
18.1.2 Business Segmentation
18.1.3 Key Information
18.1.4 SWOT Analysis
18.2 Rockwell Automation Inc.
18.2.1 Business Overview
18.2.2 Business Segmentation
18.2.3 Key Information
18.2.4 SWOT Analysis
18.3 Siemens AG
18.3.1 Business Overview
18.3.2 Business Segmentation
18.3.3 Employee Structure by Region
18.3.4 RD Facilities by Region
18.3.5 Key Information
18.3.6 SWOT Analysis
19. Other Reports in this Series

List of Exhibits
Exhibit 1: Global Industrial Automation Market in the Automotive Industry by Product Segmentation 2013
Exhibit 2: Market Research Methodology
Exhibit 3: Global Industrial Automation Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 4: Global Industrial Automation Market in the Automotive Industry by Product Segmentation 2013
Exhibit 5: Global Industrial Automation Market in the Automotive Industry by Product Segmentation 2013-2018
Exhibit 6: Global PLM Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 7: Global Industrial Sensors Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 8: Global Industrial Robotics Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 9: Global SCADA Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 10: Global PLC Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 11: Global MES Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 12: Global SCADA Market in the Automotive Industry 2013-2018 (US$ million)
Exhibit 13: Global Industrial Automation Market in the Automotive Industry by Geographical Segmentation 2013-2018
Exhibit 14: Industrial Automation Market in the Automotive Industry In the APAC Region 2013-2018 (US$ million)
Exhibit 15: Production of Car in the APAC Region by Key Leading Countries 2009-2013
Exhibit 16: Production of Commercial Vehicle in the APAC Region by Key Leading Countries 2009-2013
Exhibit 17: Industrial Automation Market in the Automotive Industry In the Americas Region 2013-2018 (US$ million)
Exhibit 18: Production of Car in the Americas by Key Leading Countries 2009-2013
Exhibit 19: Production of Commercial Vehicle in the Americas by Key Leading Countries 2009-2013
Exhibit 20: Industrial Automation Market in the Automotive Industry In the EMEA 2013-2018 (US$ million)
Exhibit 21: Production of Car in the EMEA Region by Key Leading Countries 2009-2013
Exhibit 22: Production of Commercial Vehicle in the EMEA Region by Key Leading Countries 2009-2013
Exhibit 23: Global Industrial Automation Market in the Automotive Industry by Key Leading Countries 2013-2018
Exhibit 24: Industrial Automation Market in the Power Industry in China 2013-2018 (US$ million)
Exhibit 25: Industrial Automation Market in the Automotive Industry in the US 2013-2018 (US$ million)
Exhibit 26: Industrial Automation Market in the Automotive Industry in the Japan 2013-2018 (US$ million)
Exhibit 27: Industrial Automation Market in the Automotive Industry in Germany 2013-2018 (US$ million)
Exhibit 28: Global Industrial Automation Market in the Automotive industry by Vendor Segmentation 2013
Exhibit 29: Business Segmentation of ABB Ltd.
Exhibit 30: Business Segmentation of Rockwell Automation Inc.
Exhibit 31: Rockwell Automation Inc. Revenue by Business Segmentation 2010-2012
Exhibit 32: Rockwell Automation Inc. Revenue by Geographical Segmentation 2011-2012
Exhibit 33: Siemens AG. Revenue by Geographical Segmentation 2011-2012
Exhibit 34: Business Segmentation of Siemens AG 2012
Exhibit 35: Employee Structure of Siemens AG by Region 2012
Exhibit 36: RD Facilities of Siemens AG by Region 2012

To order this report: Global Industrial Automation Market in the Automotive Industry 2014-2018
http://www.reportlinker.com/p02183874/Global-Industrial-Automation-Market-in-the-Automotive-Industry-2014-2018.html

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Article source: http://www.prnewswire.com/news-releases/global-industrial-automation-market-in-the-automotive-industry-2014-2018-269051041.html

Mexico’s Growing Auto Industry: Bane Or Boon For US Big Three?

Standing in front of the assembly line in Volkswagen’s massive campus in Puebla, Mexico, 35-year-old line boss Milton Araujo, looked at the shiny new Volkswagen Beetles rolling off the conveyer belt, illuminated by the bright lights overhead. “Back in the day, everybody had a Beetle,” he told Fox News Latino. “Now the car is different, much more modern.”

So is Puebla, which has emerged as one of the main hubs of Mexico’s automotive sector. “There are more stores, shopping centers,” Araujo said.

VW’s facility is a modern metropolis unto itself, covering more than 1.1 square miles, employing nearly 16,000 people and producing more than 500,000 vehicles a year.  

It’s the largest car factory in North America and a big part of the reason why in 2013 the company celebrated the production of its ten millionth car made in Mexico. 

Beyond Volkswagen and Puebla, the automotive industry is also growing throughout the country, in places like Aguascalientes, where Nissan opened a $2 billion facility late last year.

The latest evidence of this came in early July, when BMW announced plans to build a $1 billion assembly plant, most likely in the central state of San Luis Potosí.

In the last decade, Mexico has emerged as the world’s fourth-largest automobile exporter, behind only Germany, Japan and Korea, and earlier this year the country eclipsed Japan as the biggest exporter of cars to the world’s largest market, the United States.

“Investors see Mexico as an export platform with access to the United States,” Eric Farnsworth, the Vice President at the Council of the Americas in Washington D.C. told FNL.

Auto manufacturers from around the world are drawn to the country because of its proximity to the U.S. as well as cheap labor. Workers are paid about one-sixth what their counterparts in the U.S. make.

Chrysler builds Hemi engines and Ram pickups in Saltillo, the capital of the Mexican border state of Coahuila. General Motors builds Silverado trucks in the state of Guanajuato, northwest of Mexico City.

Although Chrysler still builds its highly profitable Jeep Grand Cherokee in Detroit, both Ford and General Motors have shuttered facilities in the Motor City.

Today Detroit is bankrupt, known nearly as much for its urban decay and abandoned factories and 14.5 percent unemployment rate—a figure more than double the national average—as it once was for manufacturing the cars.

The simplest logic suggests that there is a zero-sum calculation that any new auto plant in Mexico means one less plant in the U.S. and that every job created means one fewer job in the U.S.

Advocates of cross-border, regional economic development as exemplified by the North American Free Trade Agreement (NAFTA), however, argue that U.S. companies working in tandem with partners in Mexico can out-compete manufacturers in Asia and help build up the industry on both sides of the Rio Grande.

“Mexico isn’t taking jobs from the U.S.,” Eric Farnsworth told FNL, “Because of integrated supply chains, up to 40 percent of the content of the products Mexico exports comes from the U.S.”

NAFTA has helped create more than six million jobs in the U.S., its defenders claim, but it’s a notion that is frequently disputed.

What is clear is that, since NAFTA came into force in 1994, foreign direct investment (FDI) in North America has increased nearly sixfold from $110 billion per year in 1992 to $650 billion per year in 2010, and today more than $1 billion dollars of goods and services cross the U.S.-Mexico border every day.

“A prosperous Mexico is good for the U.S.,” Farnsworth added, echoing the sentiment expressed by Mexican President Enrique Peña Nieto last year in an editorial in the Dallas Morning News. The U.S., Peña Nieto observed, “sells more of its exports to Mexico than it does to Brazil, Russia, India and China combined. By increasing economic growth in Mexico, we create jobs in the U.S.”

“The North American automobile industry is one of the most compelling cases of economic integration in the world,” Tony Payan, director of the Mexico Center at the Baker Institute for Public Policy at Rice University, told FNL. “It’s a success story, but at the same time it’s a darker story about Mexico betting on low wages” to drive development.

Eight out of every ten vehicles produced in Mexico are shipped out of the country.

“Overall Mexico is seen as a good point of distribution for both North America and South America. But [in terms of sales] it’s not a high volume country,” Paul Lacy, a director of the automotive division at the consulting firm IHS, told FNL.

Mexico may be home to 16 billionaires, but more than 11 million of the country’s 120 and some million people live in extreme poverty. In 2013 the country’s economy expanded by only 1.1 percent, and growth in 2014 isn’t expected to top 3 percent.

Nearly half of Mexico’s labor force works in the informal economy—low skill jobs that include window washers, taco stand operators and domestic help. Even if they earn enough to afford monthly payments for a car, informal sector workers often struggle to get bank loans. For this reason, Payan explained, “The cars you see in Mexico tend to be older. Families keep their cars longer.”

The Chevy Aveo is the top selling car in Mexico. But, Mexico’s automobile sales are not exactly a cause of celebration for U.S. carmakers.

In 2013 Mexico reported 1,063,363 new car sales, the first time since the beginning of the global recession in 2008 that that number topped a million.

By contrast, consumers in the U.S. purchased 15.6 million vehicles in 2013.

To put this in perspective, in 2013, Fiat, the automaker that owns Chrysler and Jeep, reported 85,000 vehicle sales in Mexico—about three-quarters the amount the company sold in Argentina.

Fiat sold nearly 1.9 million cars in the U.S. and 785,000 in Brazil.

“Cheap labor has been the Mexican strategy for the last forty years, and clearly workers cannot afford the cars [they make],” Payan said. “There’s a tension in Mexico that’s unsustainable. Mexico bills itself as a middle-class country but relies on low wages. You cannot be both a middle class country and a low-income country. Middle class implies consumption.”

Not everybody sees the glass half-empty, though. “You still have a relatively small middle class, but that’s going to grow,” Farnsworth said.

“Companies no longer look at Mexico as an assembly country, a maquiladora. Mexico has educated a tremendous number of engineers and now design work and engineering takes place on both sides of the border,” he added.

After 20 years of focusing on encouraging people to get engineering degrees, Mexico now has more engineers than Germany, Brazil or Spain

These graduates may have a bright future if Mexico’s industrial sector continues to expand.
Looking towards the future, analysts see labor costs rising in other parts of the globe, like China, something that is very likely to benefit America’s southern neighbor.

According to automotive analyst Paul Lacy, “Mexico’s manufacturing continues to grow, and that will create economic growth.”

And, he added, “We’re better off working with Mexico than we are without Mexico.”

Nathan Parish Flannery is a freelance reporter based out of Mexico City who has worked on projects in Mexico, Colombia, Bolivia, India, China and Chile. Follow him on Twitter: @LatAmLENS.

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Article source: http://latino.foxnews.com/latino/money/2014/07/29/mexicos-growing-auto-industry-bane-or-boon-for-us-big-three/

Automotive industry playing increasing role in opto component market

28 July 2014

Automotive industry playing increasing role in opto component market

In recent years, the optoelectronic component market has been dominated by a number of applications, namely LEDs, backlighting and the emergence of solid state lighting. In the optocoupler and photo-relay markets, the focus has been on the industrial sector, while the infrared component and sensor markets are dominated by the consumer and telecoms sectors. However, with car ownership increasing in less economically developed regions and vehicles becoming more technologically advanced, the automotive sector is playing an increasingly important role across all the major optoelectronic component product types, according to a Research Note from market analyst Stewart Shinkwin at IHS Inc.

Following a new European Union (EU) directive 2008/89/EC, which required all new models of car after 2011 to be fitted with daylight running lamps (DRLs), the adoption of LEDs in automotive exteriors has increased significantly. Due to the long lifetime and energy-efficient nature of LEDs, penetration in this market sector has been high and has helped to drive adoption of LEDs.

The penetration of LEDs in headlamp units is still relatively low, with only 2% of car headlamps using LEDs in 2013, according to figures from IHS Automotive. As their popularity, performance and efficiency grow, this is set to increase to 17% in 2019. This will bring significant growth to the LED market, with packaged LEDs for automotive exterior lighting set to rise at a compound annual growth rate (CAGR) of over 8%.

With the spread of technological advances in the automotive industry, the adoption of infrared components has increased, with a wide range of automotive applications including auto head-lamps, automatic windscreen wipers, gesture control, and night-vision displays. A number of manufacturers are putting an increasing emphasis on this sector, due to the relatively low competition compared with the consumer sector. Infrared revenue in this sector is forecast to grow from $118m in 2013 to $207m in 2019. It is unlikely these technologies will become standard features in lower-cost models, but their penetration in mid-tier models is increasing continuously, says IHS.

The increase in sales of hybrid electric vehicles (HEV) and full electric vehicles (EV) is also promoting growth in the market for optocoupler, which are used in HEVs to isolate the onboard chargers and other high-voltage systems. With HEV shipments growing at a CAGR of 18% through to 2019 and little price erosion due to the significant barriers to entry, this market is a lucrative one for those manufacturers that can operate here, says IHS. The market is forecast to nearly double from $74m in 2013 to $146m in 2019.

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Article source: http://www.semiconductor-today.com/news_items/2014/JUL/IHS_280714.shtml

BASF opens new coatings plant for Chinese automotive industry

Related Sectors
Technology Automobile Technology

Related Dates
2014 July

Related Industries
Automotive Automobile technology Others

Article source: http://automobiletechnology.automotive-business-review.com/news/basf-opens-new-coatings-plant-for-chinese-automotive-industry-250714-4327690

5 YEARS LATER: ‘Cash for clunkers’ an auto industry lifeline

By Ryan Beene, Crain News Service

WASHINGTON (July 28, 2014) — It’s hard to imagine that words like “U.S. sales bonanza” were ever used to describe anything that happened in 2009. But they were.

The Car Allowance Rebate System (CARS), also known as “cash for clunkers,” was a lifeline at a desperate time in the U.S. auto industry. Consider this: When U.S. vehicle sales fell 28 percent in June of that year, the drop wasn’t seen as being so bad. Every other month that year had been worse.

“We were getting our teeth kicked in,” recalled Paul Lunsford, a Toyota dealer in Orange County, Calif.

Cash for clunkers changed that, if only for a couple of months. Nearly 700,000 vehicles were traded in through the $2.85 billion program, which provided consumers as much as $4,500 each to trade in an old gas guzzler for a more fuel efficient new model. Cash for clunkers turned July and August 2009 into bright spots during what was otherwise a year that most in the industry would rather forget.

The idea was seen as a way to encourage consumer spending and reduce carbon emissions—a priority for the new Obama administration.

The U.S. Senate introduced a bill in January 2009. After months of wrangling in Congress, the CARS program was signed into law in June with an official start date of July 1 and $1 billion in funding.

Once it took effect, customers flocked to showrooms.

The seasonally adjusted annual rate of sales jumped to 11.4 million in July. That was the first time the SAAR topped 10 million that year.

August was even better: an unfathomable 14.6 million SAAR.

Demand was so high that the program ran out of money in less than a month. That prompted Congress to approve another $2 billion to keep the metal moving. The additional funds were exhausted by Aug. 24, two months earlier than the government expected.

“Cash for clunkers opened up the floodgates,” said Toyota dealer Mr. Lunsford. He said sales at his store more than doubled from 149 new vehicles in June to 311 in August. “It was crazy.”

The program also slashed industrywide inventories more than 35 percent, from about 2.2 million vehicles on the ground on July 1 to just 1.4 million two months later.

“What we had at this particular moment was really high dealer inventories and a general skittishness amongst our dealers and in the industry as a whole,” said TrueCar.com President John Krafcik, who was CEO of Hyundai Motor America at the time. Clunkers “gave the industry some good news and let the industry put some points on the board.”

There were also glitches.

An overwhelmed National Highway Traffic Safety Administration (NHTSA) couldn’t handle the reimbursement requests quickly.

When the program ended in late August, NHTSA still had nearly 650,000 pending dealer payments and had to pull about 7,000 federal employees from other government agencies and private contractors to process the requests, according to a Brookings Institute report.

That left some dealers holding hundreds of thousands of dollars—sometimes millions—worth of reimbursement requests for months before finally being paid.

Whether the program was a net gain for the U.S. economy is a matter of debate as well.

A September 2009 analysis from the President’s Council of Economic Advisers found that the program added about 490,000 incremental new-vehicle sales to normal replacement rates of about 100,000 vehicles per month.

The Brookings Institute’s analysis, released in October, was less generous. It said the program created just 380,000 sales, and those sales were simply pulled ahead from the next 10 months and would’ve happened without the stimulus. Gross domestic product growth was “negligible” and employment increases were “minimal,” according to the analysis.

Clunkers did cut carbon dioxide emissions by replacing gas-guzzling SUVs and pickups with small, fuel efficient compact cars or mid-sized sedans. But, according to the Brookings Institute’s analysis, doing so was expensive and less cost-effective than some other environmental policies, such as the cap-and-trade bill passed by the House in 2009.

In short, cash for clunkers moved the metal and cleaned up the fleet a bit—but at a high cost. If it were up to Brookings, 2009 would be the last time such a policy is taken up.

Said the report’s authors: “In the event of a future economic recession, we would not recommend repeating the CARS program.”

Many in the industry would respectfully disagree.

This report is the latest in a series of stories looking back at the auto industry collapse of 2008-09 that are appearing on the website of Automotive News, a Detroit-based sister publication of Tire Business.

Article source: http://www.tirebusiness.com/article/20140728/NEWS/140729913/5-years-later-cash-for-clunkers-8217-an-auto-industry-lifeline

State to improve automotive industry

Colonel Kaunda, who was speaking on Friday night during a cocktail at Yeti Motors Limited in Lusaka, said Government is ready to support and work with private companies in order to spearhead social and economic development.
He commended Astro Holding Group for providing various brands of vehicles in Zambia.
“It is high time Zambians got the privilege of buying affordable brand new vehicles as opposed to the importation of second-hand vehicles,” he said.
“Our vision is to have people afford brand new vehicles and ensure safety on the roads,” he said.
Col Kaunda said Government has embarked on massive developmental projects ranging from the construction of roads, schools, hospitals and other infrastructure.
Speaking earlier, Astro Holdings Group general manager Christopher Chilongo said for the last 30 years, the company has expanded its base by venturing into motor vehicles, general trading, real estate, tourism, manufacturing and investment management.
Mr Chilongo said the Group aims at establishing a broader base to expand growth areas and diversify its business strategy.
“We have partnered with local banks such as Investrust and Stanbic to offer leasing finance to our existing and prospective customers. On the Zambian market, we offer competitive prices for vehicles, service plans and spare parts,” he said.

 

Article source: http://www.daily-mail.co.zm/index.php/local-news/item/6838-state-to-improve-automotive-industry

Spotlight on Privacy in the Automotive Industry

Privacy is a hot topic these days, and the automotive industry is no exception. Connected cars, in-car location services, telematics systems, event data records (black boxes), driverless cars, online consumer targeted advertising, vehicle-to-vehicle communications, mobile apps for cars, data analytics by insurance companies, Apple and Google operating systems for cars – all of these developments are shining a brighter spotlight on privacy in the automotive industry. Consumers and privacy advocates are becoming more and more concerned about privacy violations that may result from the IoT – the “Internet of things� – and cars are part of the IoT infrastructure. OEMs, component part manufacturers, suppliers, service organizations, distributors and dealers all find themselves in the chain of handling personal information and accordingly should be concerned about legal compliance, public relations and customer relationships when it comes to dealing with customer information.

FTC regulations and guidance, for example, require “privacy by design� – building privacy into product and service design and development from the ground up. Consumers must be given notice of what personal information is collected, for what purposes, how it is used and with whom it is shared. Consumers must also be given access to their personal information and a choice (the ability to opt-out) when it comes to using the information for purposes other than product or service delivery, such as sharing with third parties for marketing purposes. Generally, affirmative opt-in consent – not just notice – must be obtained before collecting location information. We all have seen the notices that pop up on our smart phones. We see those notices for a reason – and much of it is driven by legal compliance.

The GAO’s In-Car Location-Based Services report addresses a number of these issues, including disclosure of privacy collection, use and sharing practices; consumer consent and controls; security safeguards and retention of customer information; and accountability for misuse and unauthorized disclosure. Among other things, the GAO states in connection with the collection of in-car location and other information, companies should:

• State the reasons companies collect and share data

• State specifically that collection of location data is limited to specific needs

• Not use data for a purpose other than what has been disclosed to consumers without providing notice and obtaining consent before using the data

• Obtain consumers’ consent before collecting their personal information

• Provide consumers the ability to opt out of data collection to which they have previously consented

• Allow consumers to delete location data that have been collected (The GAO pointed out that the automotive industry has been particularly deficient with respect to this point)

• State a specific time frame for retaining consumer data

• Protect data with reasonable security safeguards against risks such as loss or unauthorized access.

• De-identify data when possible, particularly when transferring data to third parties.

Lastly, the GAO urged the industry to be more accountable when using third-party service providers to handle and maintain customer information. For example, companies should:

• Contractually require service providers to protect privacy and security, and/or comply with certain privacy and security practices

• Limit or prohibit commingling data with data from other customers

• Conduct due diligence risk assessments

• Obtain copies of audits or risk assessments obtained or conducted by the service provider

Failure to comply with legal obligations with respect to the privacy and security of personal information can result in state and federal regulatory investigations and enforcement actions, as well as private claims and class actions. While consumer product retailers have been grabbing the most headlines lately with respect to privacy breaches, companies in the automotive industry should likewise take care to build in a “privacy by design� approach to products and services in order to minimize the risks associated with collecting, using and sharing personal consumer information.

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Article source: http://www.jdsupra.com/legalnews/spotlight-on-privacy-in-the-automotive-i-95534/