Doldrums - what doldrums; do the auto's maths

The automotive industry designs, manufactures, creates the mood and sells the world's motor vehicles. Even in the recession ravaged 2009, more than 60 million motor vehicles were still made and sold worldwide. In the first quarter of 2010, in China alone - total sales of autos topped 4.60 million. In the year, total sales are expected to be around 17 millions (actual comparison was 13.65 million in 2009) for the whole of 2010. If achieved - this would amount to nearly twice as much as in the USA or 10 times as much as the UK. In 2010, although auto retailers are still recovering whilst learning to live without a government sponsored scrappage scheme - the PLC ethos of value based management to drive share value has regained traction. Rapidly rising oil prices yet again, coupled with a combination of pricing pressures from raw material costs and changes in consumer buying habits, place a big question mark over how long the recovery in automotive can last. The entire industry is facing increasing competition from public transport and consumers continue to re-evaluate their private vehicle usage. For instance around half of the US's 50+ light vehicle plants are projected to permanently close in the coming years, with the loss of 200,000 jobs, that being on top of the 550+k jobs already lost this decade. For how much longer will successive UK Governments ignore the elephant in the corner of the room in favour of papering over it's crack with subsidies, grants or what you will? The day will inevitably dawn when the social cost of producing all this polluting tin will been seen by all to far exceed the social benefit of employment in the sector. Probably the best the industry can look forward to in the next 10 years is an all electric town car which at say £3995 + batteries (£3k) destroys the conventional compact segment. The ensuing reliability and lack of servicing requirement arising from plastic monocoque, regenerative brakes, no gearbox etc will pose a serious threat to aftersales profitability and make the holy grail of 100% absorbtion a pipe dream. It will be this period which will put greatest strain on Block Exemption status as the relative simplicity of the product and low price will lead the motoring public to demand purchase points at Superstores and airports rather than Motor mile.

News from the Motor Trade

Doldrums - what doldrums; do the auto's maths
The automotive industry designs, manufactures, creates the mood and sells the world's motor vehicles. Even in the recession ravaged 2009, more than 60 ..... more details

Third World markets - opportunity or threat?
For generations, the developing world has been seen as a growth opportunity for the West. Improved fortunes in third world countries traditionally had ..... more details

Is the digital age driving decline in U.S. car culture and will it spread to UK?
The automobile, once an immediate ambition of American youth is suffering an erosion of social relevance for an increasing number of people under 30 i ..... more details

Bill Gates invests $23.5 million in EcoMotors
EcoMotors International has received $23.5 million from Microsoft Corp. Chairman Bill Gates and investor Vinod Khosla for engineering and testing of i ..... more details

8,000-mile test drive with no driver

A group of Italian technicians just launched what is being hailed as the longest-ever test drive of vehicles with no driver. An 8,000-mile, three-m ..... more details

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