The six tendencies driving change in the automotive industry

Posted on 25/11/2020Comments Off on The six tendencies driving change in the automotive industry

What Does the Future Hold for the Automotive Industry?

UK sales of recent light commercial vehicles (LCVs) final month fell greater than the 44.5{0995643d07225b844baadbc1e6b0d2b8ea73bc2bd98af3cca8b20a61a6b88544} plunge seen for new vehicles – 54.three{0995643d07225b844baadbc1e6b0d2b8ea73bc2bd98af3cca8b20a61a6b88544} 12 months on year in March amid nationwide lockdown measures in response to the coronavirus disaster. New Zealand’s Motor Industry Association mentioned March 2020 registrations have been down 37.three{0995643d07225b844baadbc1e6b0d2b8ea73bc2bd98af3cca8b20a61a6b88544} yr on year with 8,317 new automobiles registered in comparison with March 2019’s thirteen,271 gross sales. The coronavirus crisis might turn into a optimistic for theaftermarket sector in the lengthy-run. The Covid-19 pandemic impression is forecast to lower alternative/scrappage of current vehicles in use – making the parc last longer – and bringing alternative for restore and maintenance parts and elements, according to research undertaken by GlobalData. Renault is to concentrate on LCV and electric vehicles in China in a preliminary settlement with Dongfeng Motor via which the manufacturer will switch its shares to Dongfeng.

Known as the Benz Patent “Motorwagen”, his creation is considered by many as the start of the automobile. Alice Park, “Why electrical vehicles are extra polluting than fuel guzzlers—at least in China,” Time, February 14, 2012, time.com.

Since launching manufacturing of its new EC6 battery powered sedan in February, the company had turn into increasingly bullish about its full year prospects. Chairman and founder William Li final week stated “based mostly on the current development, we might hope the day by day new order intake fee in April to return to the extent of last December”. Mitsubishi Motors Corporation said it would temporarily suspend manufacturing of kei cars in Japan.

Following repeated attempts to have interaction with the interiors specilaist, which has refused to verify that laid off employees can be registered under the scheme, Unite has now contacted Faurecia shareholder PSA and its buyer JLR. The union has requested the automotive maker to strain Faurecia “into following the example of many other companies within the automotive sector by issuing a guarantee”.

Ford says it has decided to convey forward a part of the summer season shutdown period for its UK manufacturing operations (engine manufacturing at Bridgend and Dagenham) to the Easter period. It’s one other sign of the deepening short-term influence of the COVID-19 disaster on the industry and the necessity to regulate manufacturing to much lower market demand. JCB has stopped production in any respect its UK manufacturing plants as disruption resulting from the worldwide Coronavirus pandemic has resulted in a discount in international demand.

Kia Motors mentioned it was planning to droop production at three of its nine automobile assembly crops in South Korea later this month due to the sharp fall in global vehicle demand caused by the COVID19 coronavirus. “There’s no telling how widespread or lengthy lasting the ripple effect of the coronavirus might be for the automotive industry,” said Chris Sutton, a vp with J.D. Companies with sturdy steadiness sheets and entry to capital markets might want to consider whether the time is true to explore M&A opportunities. This is especially true of corporations which have a transparent view of how they match into the evolvingautomotive value chain. The deeper into the availability chain, the larger the impact of the outbreak is likely to be.

Light car gross sales in the US fell nearly 39{0995643d07225b844baadbc1e6b0d2b8ea73bc2bd98af3cca8b20a61a6b88544} in March compared with final 12 months, in accordance with industry gross sales information rising at present. Data from Ward’s exhibits that 992,392 gentle vehicles have been offered last month, also a sharp drop on February’s 1.4 million, in accordance with Ward’s.

Most cars nonetheless depend on petroleum to function, making vehicles nonetheless the lifeblood of the oil and fuel industry. Tesla will be the talk of the town at present, nevertheless it is only one in an extended line of automobile producers.

Hyundai Motor stated it had suspended production at its automobile assembly plant in Chennai, India, till a minimum of the tip of March because the COVID19 coronavirus continued to unfold quickly throughout the globe. The Indian authorities had simply ordered producers to lock down their plants across most of the country within the regions the place the virus had taken maintain.

This yr, nonetheless, the automotive industry has seen its worst March for many years, as it struggles to deal with the influence of the coronavirus pandemic. I bear in mind GM had a few platforms – one electric and the other hydrogen – that they never appeared to have carried out something with. It jogs my memory of automobiles from years ago where one firm constructed the platform and another constructed the physique – coach works.