 |
|
|
Search OSAT Affiliate Login Six Sigma Site Premier Auto Links OSAT Test Drives New Reports Economic Development Forecasts Globalization/Trade Industry Structure Manufacturing Powertrain Archive |
Globalization and Trade :
All Articles
Globalization of the automotive industry continues to
accelerate as offshore manufacturers and suppliers open
production facilities in North America, and North American
companies invest overseas and throughout the North
American Free Trade Agreement (NAFTA) region. But perhaps the most compelling reason to globalize is to
reduce costs that would otherwise trickle down to
consumers (as higher prices) and shareholders (as reduced
profits). Pressure to rein in costs has become fierce in the
last few years, spurred by the ever-increasing market share of
leaner Japanese companies. With labor-related costs among
the highest that companies incur in normal business
operations, outsourcing labor has become a popular financial
fix as automakers call on both contract labor and their
suppliers to take on more of the production involved in
bringing a vehicle to market. And as overseas workers in
both blue- and white-collar positions become better educated and more skilled technically, the popularity of
offshoring is increasing.
Download Report (  Acrobat, 516 KB)Inside China: The Chinese Vie of their Automotive Future (2006)
Automotive manufacturers and suppliers view China as the largest combination of automotive market and low-cost manufacturing and supply base to appear in decades.
Companies are deluged with information about the
potential opportunities in China, but typically know very
little about what the Chinese think about their automotive
future. The steady influx of automotive manufacturers
and suppliers over the past ten years has provided the
Chinese with first hand experience of what the impact
of a world-class, high-volume automotive industry can
mean to a country. The Office for the Study of Automotive
Transportation (OSAT) at the University of Michigan
Transportation Research Institute (UMTRI) and the IBM
Institute for Business Value consider this as an opportune
time to explore what the Chinese themselves think about
their recent automotive experience, and what they think the
future will hold for this industry and their country.
Our study focuses on the opinions of 20 leaders in
Chinese industry and government, as well as academic Can the Environment Survive China’s Craze for Automobiles? (2005)Download Report ( Acrobat, 516 KB)Return to selections
Programs as well as efforts to control industrial and residential pollution in China have led to a slight improvement
in their air quality. However, without renewed efforts, China’s rapid vehicle population growth
threatens the environment. This article evaluates China’s recent programs to reduce the environmental
impacts of rapid vehicle development and makes recommendations on how China can follow a more sustainable
path of vehicle development.
Download Report ( Acrobat, 321 KB)Return to selections
Sponsored by TRW, Robert Bosch, and Tenneco Automotive, this 2000 report examines the implications
of manufacturers and suppliers adding capacity to serve expected explosive growth in numerous emerging
markets. The report reviews the consquences of local sourcing compared to importing for these markets
across a range of sourcing scenarios varying nations, market size, product, and plant scale. The
scenarios are constrained by tariffs, shipping costs, and inventory requirements. The report provides
estimates of the effects of these factors on the cost of producing in developing markets.
Download Report (  Word, 321 KB)Return to selections This is the first document posted under our new China Automotive Program.
This report reviews the circumstances surrounding the Big Three entry decisions, including the earlier participation of these companies
in ASEAN, the factors spurring their current investments, their specific entry strategies, their decision processes, and the accuracy of
their assumptions about the local economies. We then discuss a range of market issues, covering product selection, marketing and sales
strategies, retail distribution strategies and retail customer financing efforts. Finally, we examine their production targets, including
export plans, and their procurement strategies.
Authors: Michael S. Flynn, Kara F. Alkire, and Richard Senter, Jr. Download Report ( Acrobat, 60 KB)Return to selections
Although an increasing number of alternative fuel vehicles have been deployed in recent years, various factors have limited this progress,
such as large sunk investments in conventional technologies, limited networks of refueling stations, the typically higher cost of alternative
fuel vehicles, and the relatively low price of oil. This paper examines the experience of existing alternative fuel vehicle programs in the
U.S. and China to provide insights into appropriate strategies for developing hydrogen vehicles and infrastructure in China.
Download Report ( Acrobat, 321 KB)Return to selections
|
|
