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THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

January 23rd, 2012 | Author: admin

THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

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Home Page > Automotive > THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

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THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

By: Chukwukere Chidozie Godwin

About the Author

(ArticlesBase SC #1301035)

Article Source: http://www.articlesbase.com/ – THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

Abstract

The study examined the impact of bank consolidation on automotive industry financing.

61 respondents selected through strategic random sampling technique from GM Motors Nigeria Ltd formed the population for the study.

Data was collected using a survey instrument designed by the researcher. Chi-Square Statistical method was used to test the hypotheses and all findings held at 0.05 alpha significant level. The Analysis of the data revealed that the participants almost unanimously agreed that bank consolidation had impacted positively to the automobile sector in Nigerian economy.

Based on the findings, it was therefore recommended among others things that a regular review of automotive industry in Nigeria by the appropriate authorities while effort should be made to improve the power system (electricity situation) in Nigeria.

INTRODUCTION

Background of the Study

Mergers and acquisitions should be taken seriously as an instrument for enhancing banking efficiency, size, and developmental roles in every economy. Mergers and acquisitions especially in the banking industry is now a global phenomenon.

All over the world and given the role of finance, size has become an important ingredient for success in the globalizing world. The last few years have witnessed the creation of the world’s big banking groups through mergers and acquisitions. The trend has been influenced by factors such as prospects of cost-savings due to economies of scale as well as more efficient allocation of resources, enhanced efficiency in resource allocation, and risk reduction arising from improved management. However, the automotive industry is not left out in the process of alliances. Over the years the industry has witnessed different types of global alliances. For instances Renault- Nissan, VW-Skoda, GM-Daewoo to mention a few them

In the past, the small size of most Nigerian banks, each with expensive headquarters, heavy fixed costs and operating expenses and with bunching of branches in few commercial centers had lead to very high average cost for the industry. This in turn has implications for the cost of intermediation, the spread between deposit and lending rates, and puts undue pressures on banks to engage in sharp practices as means of survival. In an effort to survive the hurdle, the Central Bank of Nigeria introduced the 25 billion Naira minimum capital base for banks in an effort to make our banks much stronger and to able to compete favorably with other banks in the world in providing credit facilities to other sectors of Nigeria economy.

However, in 2004 as part of economic reform in some emerging economies, the Nigerian banking system underwent remarkable change, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. Banks begin to merge with other banks; while bigger banks begin to acquire smaller ones while automotive industry has become an increasingly pertinent contributor to country’s’ gross domestic product, mainly through strong growth in the motor industries in terms of increasing volume of local production and number of sales. And this is not peculiar to Nigeria alone.

This scenario raises the question “what impact of banks consolidation on automotive industry financing in Nigeria? It is important to envision this evolution from a life cycle of production assembly and sales that have impacted on the financial statements of GM Motors Nig LTD. In order to sustain this process, the automotive industry as a whole requires huge capital intensity from strong and reliable financial back- up to remain viable in the economy and optimize their environmental impact, communicate positive steps to non-governmental organization and other stakeholders to discharge their social corporate responsibilities while maintaining design of product, service system from a sustainability point of view. Hence this work is set to assess the impact of bank consolidation and capital provision for the automotive industry financing in Nigeria (A case study of GM Nigeria ltd)

COOPERATE PROFILE OF GM MOTORS LTD

GM Nigeria is a foremost player in the automotive industry and one of the leading motor vehicle assemblers and marketers in the country. GM Nigeria is a joint venture company between UAC of Nigeria Plc – one of the biggest conglomerates in Nigeria and General Motors Corporation of Detroit, the world’s largest automobile manufacturers. The relationship of these two companies gives them the best support and advantage in all facets of their operations, i.e. Sales, Parts, Services and Assembling.

About GM Global
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 321,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. GM’s automotive brands are Buick, Cadillac, Chevrolet, GMC, Holden, HUMMER, Oldsmobile, Opel, Pontiac, Saab, Saturn and Vauxhall. In some countries, the GM distribution network also markets vehicles manufactured by GM Daewoo, Isuzu, Subaru and Suzuki

Brief History of GM Motors in Nigeria

1920 – Started as a Company called Miller Brothers Nigeria Limited which imported cars in to West Africa

1927 – Started importing completely assembled Bedford commercial vehicles into Nigeria.

1929 – Became the Motors Department of then UAC, now known as UACN Plc

1931 – Name changed to Niger Motors Limited. Continued importing built vehicles.

1949 – Commercial Vehicles were shipped in as double unit packs which contained partially assembled chassis for two vehicles in one pack and the wheels in the second pack to be assembled locally.

1959 – Established Nigeria’s First Vehicle Assembly Plant at Apapa. The Company assembled the popular Bedford Trucks of various models.

1965 – The Assembly Plant was renamed Federated Motors Industries, Then popularly known as “FMI” and the distribution arm remained “Niger Motors”.

1979 – FMI started the assembly of trucks from “completely knocked down” (CRD) components.

1980 – The Federal Government accorded FMI the “Progressive Vehicle Manufacturer” status, under the Approved User Scheme. This nomenclature was to attest to its high standard and quality products at that period. FMI and Niger Motors were converted into divisions of UACN Plc.

1991 – UACN Plc and General Motors Corporation of USA incorporated GM Nigeria Limited as a Joint Venture Company. The Assets of FMI and Niger Motors were then transferred to GM Nigeria Limited.

Vision

To be number one in the commercial segment of the automotive industry by providing exceptional value to our customers.

Mission

To provide automotive products of such quality as to enable our customers enjoy superior value while delighting other stakeholders

Incorporation and Address

GM Nigeria Limited is incorporated in Nigeria under the Companies & Allied Matters Act 1990 as a private limited liability company, and domiciled in Nigeria. The address of its registered office is:
31, Mobolaji Johnson Street ,
Oregun Ikeja, Lagos .

Principal Activities

The principal activities of the company are: assembly of SKD (Semi Knocked Down) motor components to produce medium and heavy commercial trucks, importation of FBU (Fully Built Unit) pick-ups, marketing and distribution of vehicles through its network or branches and dealers nationwide. The company provides product support for parts and service at its Oregun plant, Port Harcourt branch, Abuja branch and through its numerous Parts and services dealers. The company is also involved in provision of technical training for employees, dealers and fleet customer’s personnel.

The company’s product range includes Isuzu Light, medium and heavy commercial vehicles (all with various body applications).

Shareholding Of Gm Nigeria Ltd

According to the register of members at 31st December, 2007, the following shareholders of the company held more than 10% of the capital issued shared capital of the company:

Shareholder

Number of Shares

Percentage Held (%)

UAC of Nigeria Plc

72,000,000

60

General Motors, USA

36,000,000

30

Staff of GM motors Nigeria 12,000,000 10

Source financial statement GM motors 2007

1.2 STATEMENT OF THE PROBLEM

Serious national efforts towards the development of the automotive industry in Nigeria took place in the early 1970s, with initial joint venture agreements between Peugeot and Volkswagen companies. By 2001, there were over 20 different enterprises manufacturing different types of vehicles, from boats to trucks, including motorcycles and bicycles automobiles in Nigeria. The capacity utilization of the majority of these companies is, however, very low, largely due to the high cost of importing the components needed to assemble vehicles, non government patronage and poor capital base of some of these organizations. By the introduction of the policy of bank consolidation a lot of Nigeria feels that the banking sector will see to the end of this problem. But on the contrary, Nigeria roads are littered with imported second hand vehicle, many of them as old as 10years, as the country is an attractive dumping ground for all kinds of toxic waste while a lot of automotive companies in Nigeria winding up. Hence this study is sets to examine the impact of bank consolidation on automotive financing in Nigeria.

THE OBJECTIVES OF THE STUDY

This study sets out to:

To establish the effects of bank consolidation on capital provision for the automobile sector in Nigeria. To provide a research oriented framework for the development of good understanding of the basic aspects and importance of bank consolidation as it affects automotive industry in any economy. To determine the inherent relationship between bank consolidation and capital provision for the automotive industry Determine the resent increase financial statement of GM motors and the working capital available for the industry

RESEARCH QUESTIONS

The following Research Questions will thus guild this study:

In what way does the bank consolidation affect funding for the automotive industry in Nigeria? What are the benefits that the automotive sector has derive from bank consolidation exercise? To what extent does Banks consolidation provide a vehicle for automotive industry survival in a dynamic business environment? To what extent does bank consolidation enhance growth in the automotive industries? To what extent does the resultant effect of banks consolidation increase the market potential of the automotive industry

STATEMENT OF HYPOTHESES

The following stated research hypotheses will guild this study:

HYPOTHESIS 1

Ho: There is no significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.

H1: There is a significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.

HYPOTHESIS 2

Ho: Banks consolidation do not provides a vehicle for automotive industry survival and growth, in a dynamic business environment.

H1: Banks consolidation provides a vehicle for automotive industry survival in a dynamic business environment.

HYPOTHESIS 3

H0: The effect banks mergers does not increase the market potential of the automotive industry

H1: The effect of banks merger increases the market potential of the automotive industry

1.6 SIGNIFICANCE OF THE STUDY

The research is significant in the following ways: Firstly, it will help investors in the automobile industry to appropriate the opportunities provided by the consolidation exercise in that particular sector.

Secondly, it will further assist entrepreneurs to understand the relevance of consolidation of banks to capital provision and finally, it will serve as useful source of material for researchers and students.

1.7 THE SCOPE/DELIMITATION OF THE STUDY

This Study will be limited to Sixty one staffs of GM motor Nigeria Ltd. It will covers the funding of the automotive industry in Nigeria.

DELIMITATION OF THE STUDY

The study only looked at the impact of bank consolidation on the automotive industry. The population of the study covers only the staff of GM motors Ltd Oregun, Lagos. Therefore, this study may not be generalized.

As the researcher was the sole interviewer and instrument of this study, researcher bias may be possible in any of the interpretations. Though the researcher worked hard to keep out any personal opinions, the possibility of subjectivity may still be present.

Also, it is possible that respondents didnt give accurate information about their operations in other to maintain some level of social dignity. Human Resources manager of the organization also had to answer interview questions from the researcher. This provided a certain level of uncomfortableness and uncertainty as he was worried that he may be judged by his responses. And finally the dearth of literature materials in the automobile sector also was a major challenge

Summary of Findings

This work examined the impacts of banks consolidation on automotive industry financing, using G.M Motor Ltd as a case study. Sixty copies of questionnaires were distributed, fifty one were returned giving 85% response rate. The results of the findings show that: consolidation have provided a vehicle for automotive industry survival and growth in a dynamic business environment.

Again, automotive industry seems to grow due to banks consolidation that can provide huge capital requirement in case of expansion through new products development or acquisition of small automotive companies and this is usually a strategy to form global alliances designed to monopolize and expand the brand image when merger occur and achieve in some cases political power. Furthermore, banks consolidation provides a vehicle for automotive industry’s’ corporate survival and growth in a dynamic financial environment as it boosts the strength of automotive industry and thus it enhances automotive industry’s financial capacity. Also the results showed that banks merger provides economies of scale and achieve some form of synergy for the automotive industry and the resultant impact of banks consolidation increases the market potential of the automotive industry.

The research also revealed that banks consolidation result in a higher market price and higher earnings per share coupled with improvements in its stability though opinion is divided as to whether the dividend before and after automotive industry alliances cannot be maintained after the consolidation in order for the market price of the automotives stock to be established.

Banks consolidation seems to increase corporate power and improve market share in some cases, resulting in a higher price earning ratio. The work also showed that bank consolidation aids the automotive industry in financing that would not otherwise be possible to obtain, which helps to achieve some synergistic effect without strong bank’s financial capital base.

Also revealed by the study is the fact that banks Consolidation brings about adverse automotive industry financial sustainable effects because the anticipated benefits did not materialize for expected cost reductions were not forthcoming hence it should result in higher earnings or improve its stability. Furthermore, the findings showed that banks merger is vested in automotive industry ability to foster growth and the resultant profitability which will otherwise be difficult and nearly be impossible without banks strong capitalization

Conclusion

Nigerian’s automobile industry is one of the continent’s fastest growing sectors, but it lacks the necessary local technology and finance to fully harness its potential and contribute to national growth and development. This state of affairs has ensured that investing in the sector has become the preserve of just a few foreign companies in the automobile sector, largely based outside of the continent. Bank Consolidation introduced in Nigeria in 2005, is an expression of strong desire of Nigeria government to reinforce an instrument for enhancing banking efficiency, size, and developmental roles in her economy. It is pertinent to know that this exercise has assisted the automaker industry to raise capital that may be require in times of boom as well as depression and successful entry into products market as well as into new geographical markets in Nigeria. The primary purpose of corporate entities has been to increase the financial and operational strength. Banks, consolidation has helped in playing important roles of supporting the real sector like automotive industry in a global context hence banks have remained a new phenomenon in financing big projects in automotive industry in the corporate business world.

Outside the capital provision the automobile sector in Nigeria has also experienced a lot much neglect than other sectors ( Abiodun 2008). In seeking to achieve success in this sector vigorous efforts should be made to counter some of this factors which are known to have hindered achievement in this sector in the past like; power, local content policy and restriction on the importation of cars which can be locally assembled here. Effort should be made to sustain this little improvement that has been recorded in this sector as result of bank consolidation.

RECOMMENDATION

Based on the findings from the study and the facts at the disposal of the researchers, the following recommendations are made

Regular and study review of the automotive parts/components development industry in Nigeria by the appropriate authorities Government should provide incentive measures to encourage the local auto makers for ensuring compliance with approved local programmes; The right of inspection and other quality assurance activities in factories, ports and roads in pursuance of minimum standard of automobile on Nigeria Roads by the appropriate authorities Regular evaluation of the pricing structure and quality of the products of the assembly plants to ensure international competitiveness; Forecasting the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw material requirements by the appropriate authorities The automobile sector should liaise with relevant organisations charged with the production of raw materials (such as sheet metal alloy and special steel) and make sure is available when needed

Finally, The Nigerian government as a matter of urgency should articulate policies that can promote the development of local technology. Basic technical capacities which should include discouraging imports of completely built up units, providing incentives to local assemblers to increase local content in production (tax reduction and subsidies) and regulations to ensure local content in varying percentages.

Retrieved from “http://www.articlesbase.com/automotive-articles/the-impact-of-bank-consolidation-on-automotive-industry-financing-in-nigeria-1301035.html”

(ArticlesBase SC #1301035)

Chukwukere Chidozie Godwin -
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Article Tags:
consolidation, merger, automotive

New Digital Media Marketing Company takes a shot at saving Automotive Industry Companies money

December 3rd, 2011 | Author: admin

New Digital Media Marketing Company takes a shot at saving Automotive Industry Providers Money!
Posted on July 19, 2010 by ipitcrew

New Digital Media Marketing Company takes a shot at
saving Automotive Industry Companies money.
(MISSION TRUTH-MEDIA) – Featured Digital Media Website Announcement News
Can a Marketing company save its clients money and stay in business? iPitCrew thinks so!

(MissionTruth.CO) – Press Release Distribution – A brand new B2B Digital Media Company iPitCrew is up and running worldwide for Dealers . Thankfully, this is not another attempt to exploit the demand that exists within the market. Correctly called “iPitCrew” these guys aim to get Automotive Industry Providers . and Industry providers to the winners’ circle by tuning up thier marketing efforts with Digital Media Marketing.
In a press release earlier today they are quoted as saying “its not enough anymore to spend more money than the next guy to be heard. You need to do just the opposite! Dealers need to spend the right money on the correct technologies. The results have to be measurable and vendors have to be accountable! The days of over spending, over promising, and under delivering are over! Automotive Industry Providers want vendors that act as partners to their business, they want a Digital Media Company that’s not married to a particular product but is quick and nimble able to adapt to the latest technologies without having to remain attached to older less competitive offerings. Most importantly they want Digital Media company that’s going to work just as hard if not harder to protect the Dealers . Bottom line profitability. “The Crew” is a group with laser focus on ROI. For us, it doesn’t't stop with identifying cost savings, we make sure our Dealers . have processes in place that will transition online traffic to sales, then follow the customer through the life cycle of ownership.”

We like to joke that most of the people on “The Crew” have Dual Degrees! One from the school of hard knocks because extensive Dealership experience is a pre-requisite, and then there are the undergraduate and Graduate degrees in Business, Marketing, and Information Technologies, There is no business like the car Business and that extensive education is invaluable. It’s what makes us truly unique we speak fluent “Dealer and Techi,” we just happen to fall on the side of the Dealers . , but if you have a great technology at a value added price, we can be friends too!”

People are taking notice and we wish these guys the best of luck! One thing is for sure these guys are building, growing a business model built around reputation. If their name is associated with it, you can be assured it’s a reputable organization.

All in all, “The Crew” promises to be an great addition to Digital Media world.

Contact iPitCrew.com for more info…Mission Truth Media

Posted in Automotive |

Tags: Automotive, Companies, Company, Digital, Industry, Marketing, Media, Money, Saving, Shot, takes | No Comments »

Global and China Automotive Audio and Infotainment Industry Report, 2009-2010

December 2nd, 2011 | Author: admin

The factory OEM market is dominating the global auto audio industry while aftermarket mainly refers to changing audio cassette into CD player. Consumers will seldom modify the audio system if it is already a CD player. In 2009, the global auto audio industry still centered on the factory OEM market while the aftermarket only occupied 14.4% of the entire market scale. The global auto audio market is maturely developed, so there is small growth space for this market and the price keeps falling. It is estimated that the market size of auto audio during 2010-2012 will not experience a substantial increase, nor will the market size of auto audio aftermarket.

The auto audio in China is also led by the factory OEM market with the major manufacturers of auto audio covering Fujitsu-ten, Siemens VDO, Mobis Shanghai, Delphi, etc., of which, Fujitsu-ten enjoyed the largest shipment in 2009 with the market share reaching 15%.

Automotive Infotainment is a kind of equipment combining both automotive information system and entertainment system. In 2009, the global shipment of auto Infotainment was decreased, mainly owing to the declined demand of premium automobiles worldwide. The global shipment of auto Infotainment is mainly concentrated in Japan, European Union and North America, wherein, the shipment of auto Infotainment in Japan in 2009 accounted for 32.6% of the global total shipment.

In the factory OEM market of auto Infotainment, the manufacturers that possess more than 10% market shares include Continental, Becker, Denso and AisinAW, while in the aftermarket, the ones with over 10% market shares cover Pioneer, Panasonic, Becker, Blaupunkt, and Alpine.

The manufacturers of automotive Infotainment in China are primarily composed of foreign-funded enterprises and joint ventures, of which, the foreign-funded enterprises approximately occupy 50%, the joint ventures about 40%, and Chinese local enterprises only 10%.

Table of Contents

1 Global Automobile Industry and Market

2 China Automobile Industry and Market
2.1 Recent Development
2.2 Brand Pattern
2.3 Sales Data
2.4 Export
2.5 Financial Status Quo of Major Automobile Groups

3 TELEMATICS
3.1 Profile
3.2 Industrial Mode & Function
3.3 Development History
3.4 Status Quo
3.5 TELEMATICS in China
3.6 Market and Industry

4 Market and Industry of Auto Audio System
4.1 Profile
4.2 Industry Chain
4.3 Market
4.4 Market Share of Global Manufacturers
4.4.1 Factory OEM Market
4.4.2 Major Suppliers & Proportions
4.4.3 Aftermarket
4.5 China Auto Audio Industry and Market
4.5.1 Auto Audio Manufacturers and Whole Vehicle Manufacturers
4.5.2 China Auto Audio Market
4.5.3 China Auto Audio and Infotainment Industry

5 Auto Infotainment Industry and Market
5.1 Industry Chain
5.2 Market
5.3 Market Share of Global Major Manufacturers
5.4 Supply Proportions of Global Auto Infotainment Manufacturers and Automakers
5.5 Market Share of In-vehicle Communication

6 Global Auto Audio & INFOTAINMENT Manufacturers
6.1 Harman International
6.2 Continental Corp.
6.3 Pioneer
6.4 Foryou Group
6.5 Alpine
6.6 Clarion
6.7 Delphi
6.8 Visteon
6.9 Hangsheng Electronics
6.10 Panasonic
6.11 Fujitsu Ten
6.12 Aisin Seiki
6.13 Denso
6.14 Panyu Juda Car Audio Equipment Co., Ltd.
6.15 Mobis
6.15.1 Mobis Shanghai
6.15.2 Hyundai AUTONET
6.16 SONAVOX
6.17 Coagent Electronic S&T Co., Ltd.
6.18 Shenzhen Baoling
6.19 JVC Kenwood
6.20 BLAUPUNKT
6.21 BOSE

Posted in Automotive |

Tags: 20092010, Audio, Automotive, China, Global, Industry, infotainment, Report | No Comments »

Global and China Automotive Wiring Harness Industry

November 30th, 2011 | Author: admin

Global and China Automotive Wiring Harness Industry Report, 2009-2010

Automotive wiring harness is called the “vessel” of a car, and it is often considered as the central nervous system of a vehicle, combining in-car computer with auto related functions. Wiring harness has become an important indicator that evaluates the performance of a car.( http://www.bharatbook.com/detail.asp?id=135367&rt=Global-and-China-Automotive-Wiring-Harness-Industry-Report-2009-2010.html )

In H2 2008, the number of orders obtained by automobile manufacturers shrunk dramatically. In 2009, optimistic expectation and strong Chinese market made automakers get more orders. As the increasing electronics get applied to the automobile, and the population of hybrid vehicles increases, automotive wiring harness market grows steadily, and it is expected that the market will value US billion in 2012.

Global automotive wiring harness market is monopolized by large manufacturers, the top four of which hold more than 75% market shares. All the manufacturers except Delphi are Japanese enterprises. The manufacturers of automotive wiring harness must have production experience and cost control ability. Yazaki, Sumitomo, Leoni, Furukawa, Fujikura, Coroplast and Comba are the manufacturers starting from wire and cable business. Most of these manufacturers own upstream mining resources. Sumitomo and Furukawa have their own copper mines and they do quite well in cost control. Traditional auto parts makers do not have many advantages in wire harness, so Valeo sold wiring harness business to Leoni.

Secondly, the manufacturers of automotive wiring harness should have technical expertise in automotive connectors. Fujikura boasts of the state-of-the-art connector technologies; so do Yazaki and Sumitomo.

In addition, the manufacturers of automotive wiring harness should cooperate exceedingly well with automakers since the quality and stability of wire harness are crucial, therefore, automakers can not change suppliers randomly after they choose a certain one. Besides, the design of auto harness associates with electronics, mechanics, thermal distribution and other factors. In such a context, the design must be synergized by automotive wiring harness manufacturers and automobile manufacturers, but it is difficult for small manufacturers to do so. Automotive wiring harness need to be improved through continuous testing. Both of Delphi and Lear have benefited from their good relationship with automakers for many years.

To know more and to buy a copy of your report feel free to visit : http://www.bharatbook.com/detail.asp?id=135367&rt=Global-and-China-Automotive-Wiring-Harness-Industry-Report-2009-2010.html

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Posted in Automotive |

Tags: Automotive, China, Global, Harness, Industry, Wiring | No Comments »

Yiran?? Art of the pilot car service model – An automobile beauty, car maintenance, car services – automotive supplies industry

November 23rd, 2011 | Author: admin

Beijing-Shenyang Expressway often pass people will surely note that there is a three-storey red and black and white building stands in the high-speed Beijing-Shenyang Camp Qiaodongbeijiao Wang 4. This is Yiran (YIRAN) Group invested 50 million yuan in 2006 built in Beijing, now the largest, most complete services and facilities the most complete “Chinese Professional Car Service base “: Yiran Automotive arts club.

Into Yiran you will find, Yiran (YIRAN) group on the premises hardware large investments of course amazing, but take a relaxing car arts clubs after the introduction of foreign advanced technology concept art of automotive service model introduced by the domestic auto service industry is of an innovation.

Art Automotive Services (ArtServices) concept is president of the German AOTEPAIGroup AdemarovonTischler ideas and proposed, originated on the German Department of BENZ, BMW, Audi, porsche luxury vehicles such as the VIP-style distinguished fine beauty services, including Body painting Spray, art paint, non-destructive cleaning, paint fast recovery, closure Glaze Coating defense. Car consumption as people’s heightened awareness of the concept art of automotive services, gradually, it is a work of art on the car as wide as the “heart” service value and represents the sublimation of the service quality, while its unique services Individual Character and the pursuit of fashion is the perfect interpretation.

In the highly competitive automotive market today, take a relaxing introduction to the group why the art of Chinese consumers unheard of automotive service model? Absorb a large number of advanced foreign technology and experience Yiran car clubs and the general arts major car service in the end what is the difference?

Car era of personalized service market General Manager Mr. Wang Wenchuan

Yiran Yiran in leading the group into the automotive service industry before, has successfully led the Yiran Group of culture, restaurants, real estate, technology and many other areas of great success, so why he entered the highly competitive After the service vehicle market? This Yiran Wen-Chuan Wang, general manager, said: “People demand the development of the car like on the phone, like the beginning to have a cell phone already is a very admirable thing, and scientific and technological progress, improved living standards, have a cell phone for most people is not a difficult thing, and this time we began the pursuit of higher value with more features high-end mobile phone, and then later when the brand of machine has become the king of all time arcade , a really suit their personality and can reflect their own phone soon became the goal. Similarly, the automotive service market is also something out of nothing, from there to the good, the final pursuit of a personal development process. Now living conditions of people getting better and better, many families owned their own cars, the market there have been a number of technical service providers a good car, but the owners are no longer satisfied with merely good and maintained the car to open and clean up. They want their cars to different, can be said that the era of personalized car already arrived. It is due to the huge market demand, the Government has gradually relaxed the control of vehicle personalization modification, we can ensure safety arbitrarily subject to the modification of his car dressed. ”

5S leading service standards

Yiran the first in which the international advanced 5S service standards, which 5S are: state-of-the-art art, we will cherish as precious works of art like the customers vehicles to VIP-style Supreme intimate care , respect each and every car person, highlighting people and vehicles valued; standardization standards, all construction services are expressly global standard processes, stringent norms are essential steps; superquality super quality, with drivers often demand in-depth understanding of the basic, composite products and services architecture, with headquarters in the advantages of globalization, sharing the top product of resources to achieve super-quality services; selfhood highly personalized to the unique world’s sixth-generation of automotive services?? body modification art of painting services, re-Hwan New car Yan, inspired artistic value, publicity people and vehicles unique personality; safty safety, all service stress Seiko secret agents, protective measures against car offering a variety of construction will not harm the vehicle itself, and car finance, brings customers at ease and enjoy real security.

Posted in Automotive |

Tags: Automobile, Automotive, beauty, Industry, Maintenance, Model, pilot, Service, Services, Supplies, Yiran | No Comments »

Global and China Automotive Air Conditioner Industry Report, 2009-2010

November 20th, 2011 | Author: admin

Japan is an overlord in household air-conditioner field worldwide thanks to its most advanced technology in the core upstream component–compressor. Many Japanese enterprises, including Daikin, Hitachi, Panasonic, Toshiba, Mitsubishi Heavy Industries and Mitsubishi Electric, are the key players in compressor industry. As such, American enterprises still have competitive strength in high-power air-conditioning compressor industry, represented by Carrier, Trane, Copeland and York. Accordingly, the automotive air-conditioner field is dominated by Japanese enterprises and American counterparts.

Denso continues its leading role in the sector. Together with Toyota Industries, which is the largest manufacturer of automotive air-conditioning compressor in the world, the collective market share of the two surpasses one third of the total. Automotive air-conditioner or compressor products of Denso have been used by the world’s well-known automakers. At the early stage, Denso built massive business in compressor sector. After 2000, Denso began to transfer compressor business to Toyota Industries and focus on the design and sales of the whole system of air-conditioners. Besides, Denso cooperated with Toyota Industries to establish compressor base in overseas country. And Toyota Industries holds always as high as 65% shares of the project. Toyota Industries only produces compressor.

The auto air-conditioner technology of Valeo stems from ZEXEL which originated from DKK. As the biggest producer of diesel fuel injection in Asia, DKK was founded in 1939 with its technology from Bosch. In 2000, ZEXEL was purchased by Bosch, and Bosch only retained diesel injection business and it sold in 2005 its compressor business to Valeo with €100 million. Since then, the joint venture had become the wholly-owned subsidiary of Valeo. Although the compressor business is not its core operation, ZEXEL still boasts the exceedingly excellent compressor technology.

About 70% revenue of Calsonic Kansei, a membership of Nissan Group, comes from Nissan which holds 32% shares of the company. Calsonic Kansei originally cooperated with Harrison (affiliated to Delphi Corporation) to produce auto air-conditioning compressor, and later acquired compressor business of NSK, which has gained favor from BMW due to its state-of-the-art technology. In particular, BMW contributes more than 70% to revenue of NSK from compressor business. Yet, NSK rests its core business with timing equipments. It is beyond doubt that Calsonic Kansei becomes the supplier of BMW after the acquisition.

Keihin, a carburetor giant, has also made remarkable achievements in compressor sector. In spite of not being compared with the three leading manufacturers aforementioned, Keihin has developed exceedingly loyal clients after years’ cooperation with Toyota. Additionally, there has JCS, an up-rising star co-funded by Mazda, Visteon and Panasonic. JCS is expected to witness a bright prospect since it has reliable customers like Mazda and Ford.

Although it is in hardship, Delphi Corp. never tends to quit its core business – automotive thermal system. As the former world’s largest manufacturer of auto air-conditioning compressor, Delphi Corp. has long teamed up with Harrison to produce compressors. As an enterprise with 100-year history, Harrison has won a host of faithful customers including Fiat, PSA and Renault apart from its VIP client–GM.

Visteon shares a slice of pie in auto air conditioner field by its role as a share holder of Halla Climate Control Corp. Similar to Delphi Corp, Visteon also concentrates on its automotive thermal system business and has no intention to quit auto air conditioner business. Moreover, Visteon has obtained over 60% auto air conditioner business from Hyundai by relying on Halla Group.

Being short of technology support, Behr, a German enterprise, joins hands with the second largest air-conditioning compressor manufacturer in Japan – Sanden to offset its demerit. In general, the air-conditioner system of Behr employs the compressor produced by Sanden. In recent two years, Behr has been to the bad ceaselessly while the profit of Sanden dropped not so much.

Chinese manufacturers are professional in after-sale maintenance market, which makes China be the largest maintenance base of automotive air-conditioning compressors around the globe. Chinese manufacturers feature high output, low unit price and slim profit; while the German enterprises are powerful in coach air-conditioner compressor, represented by BITZER which almost monopolizes the market.

Market Shares of Leading Auto Air-Conditioner Manufacturers Worldwide by Shipment, 2009

HEV (Hybrid Electrical Vehicle) air conditioner is likely to be the development tendency of automotive air-conditioner business. The main difference between HEV and traditional automobile lies in driving energy, which requires the driving mode of air-conditioning compressors to be modified. Currently, the leading enterprises in HEV air-conditioner compressors are Sanden and Toyota Industries.

For details of this report please visit http://www.researchinchina.com/Htmls/Report/2010/5930.html.

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Retail Automotive Industry: Atomic Age meets the Information Age

November 19th, 2011 | Author: admin

Retail Automotive Industry: Atomic Age meets the Information Age

The retail automotive industry is an interesting and slowly evolving business, that fights change every step of the way. Few dealerships today understand how much the market has changed and how much it is going to change in the next few short years. Still clinging to old business practices, shady and misleading advertising, and an antiquated pricing system the rest of the civilized world has abandoned they continue to struggle with client retention and customer service index (CSI) scores.

The general environment of the retail automotive industry has been carefully created over the last fifty years here in the United States (U.S.). Customers have been slowly conditioned in this market to create an entitled consumer that is difficult to please, and more demanding over the years. Couple this to the confusion and too much choice your average consumer is overwhelmed by the endless options and combinations of vehicles, and payment options. In the U.S. today, consumers now must choose between 48 manufactures, each with multiple vehicles, and each vehicle with multiple trim levels and options. As more people have access to internet research, invoice price, costs, and incentives are in the hands of consumers, making it more difficult for dealerships to retain a viable profit margin on new vehicles. However, many dealers, professional training groups, managers and owners, attempt to address the customer in the same way they did before.

The retail automotive industry as a whole is going to be forced to follow the CarMax formula for doing business. As consumers have more control over the buying process with information and misinformation, it makes it harder to direct the sale. The demographics of consumers are different for every dealer as Ford of Beverly Hills has a different clientele then Sunland Ford in the high desert. However, the one key that stays the same is that fact that eight out of ten have been online doing some form of research.

The automotive manufactures are also going to have to become a part of the solution to the issues of consumer choice. Manufactures like Ford, Chevy, and Chrysler need to follow the lead of Saturn, Honda, and Toyota and simplify their overall selection. Saturn has even taken the confusion out of the buying process by offering a Manufactures Retail Price (MRP), in place of Manufactures Suggested Retail Price (MSRP), because the customer does not have as many options it makes selling the vehicle a much smoother process. The European Union requires all manufactures to have MRP only, in place of MSRP in order to keep local economies and businesses stable. This keeps local buyers local and creates more competition for customer service in place of price.

Staffing is also a major issue in the ever-changing car business but again is it is based upon each dealer’s demographic. Dealers in Southern California and Texas are starting to require bilingual staff to service the ever growing population of immigrants, however, with this demographic comes this challenges of dealing with low income customers. CarMax has discovered a way of dealing with the by offering the same product in every demographic, controlling the sales environment by requiring the customer to walk into the showroom before having access to the inventory, and by having set no hassle prices. This concept takes the car business into the realm of normal business, like a McDonalds, or Wal-Mart, it is a process that can be duplicated across the country. The fact of the manner is that auto sales should have always been like selling anything else, washing machines, clothes, or computers.

The major issue with the current structure of the automotive retail industry is that the culture of “the car business” is ingrained that it will be hard to wrest out. There is some truth to the concept that you cannot tell the customer everything in an automotive transaction, simply because the majority of people do not understand. These are the people that ask for the mathematically impossible, (i.e. 0 monthly payment for 60 months on a ,000 Shelby) but there should also be a simpler way of doing business. The culture must change; people come in and scoff at the idea that a deal is making 0 over invoice on a ,000 car, while they paid ,500 for a mattress that cost 0 to make. There is an idea that because it is a high dollar item it is a high profit item. In order to change consumers thinking, owners and management have to change the way they do business and promote their products.

The top down transformation of the industry is going to require the attention of the entire industry. To break the culture and change consumer buying habits it would take time, but would allow the entire industry to follow the CarMax formula that cuts staffing costs, and focuses more on a process then individual personalities to generate sales, allowing fewer interruptions in service due to employee turnover. With the exception of the ultra highline automobiles, this type of business model would plug into any demographic and create a true retail environment like any other business. In this current economic down turn that is effecting the automotive industry a simpler way to process sales with greater predictability of profits and cost would make many owners happy.

Edmunds.com . (n.d.). Retrieved July 19, 2008, from Edumunds.com: http://www.edmunds.com/new/index.html?tid=edmunds.n.zipentry.new..1.*

Kane Automotive. (2008). Automotive Sales Internet Revolution. Kane Automotive Resources.

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Opportunities to Set Up or Expand your Automotive Industry Related Business

October 25th, 2011 | Author: admin

In 1984 Nissan established a Factory in Sunderland, North East England. In the past eight years this factory has been Europe’s most efficient car plant. Since then Nissans overall investment in the region has been approximately £2.1bn (.1bn). The level of commitment by Nissan has propelled the North East of England as one of the top places in Europe to relocate automotive businesses as well as the expansion opportunities available.

Nissans decision to move to the North east has prompted over 150 automotive companies to relocate or start up in the region and the industry now has a combined workforce of 18,000 skilled people. Companies in the car or car component industry can take advantage of the regions large and skilled workforce with great employment skills in the automotive industry.

In addition to the employable skills enjoyed in the region, the industry is also supported through the Institute of Automotive and Manufacturing Advance practice at the University of Sunderland which is recognised worldwide as a one of the leaders in its field. Its research includes materials and structural analysis, manufacturing systems and ergonomics. There is also Durham University’s Centre for Automotive Research; here they have expertise in vehicle aerodynamics and hybrid vehicles.

Located in nearby Newcastle upon Tyne is Northumbria University. The design school contributes to the industrial design of automotive products.

The North East of England also boasts a wide range of specialist industrial support. This includes the NEPA programme which looks at lean automotive manufacturing; The Regional Centre for Manufacturing Excellence; The Automotive Academy; and the Automotive Centre for Excellence. These resources are made available to businesses that are looking to set up in the region. The regional development agency, One NorthEast, have a dedicated team who help businesses from all over Europe and around the world to look at the opportunities available to business looking to relocate and take advantages of what the North East has to offer.

So the North East of England is a region that can support new and existing businesses that are looking for expansion opportunities or relocation opportunities in the Automotive industry. With a highly skilled workforce and support and collaboration available for the regions local Universities the North East has established itself as one of Europe’s prime locations for the Automotive industry.

If you would like to know more about these business opportunities then the best place to get advice is through the Invest North East England team at One NorthEast.

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2010 US General Automotive Repair Industry Report

October 24th, 2011 | Author: admin

The U.S. General Automotive Repair Industry report, published annually by Barnes Reports, contains timely and accurate industry statistics, forecasts and demographics. The report features 2010 current and 2011 forecast estimates on the size of the industry (sales, establishments, employment) nationally and for all 50 U.S. States and over 900 metro areas. New to the report this year are: financial ratios, number of firms and payroll estimates. The report also includes industry definition, 5-year historical trends on industry sales, establishments and employment, a breakdown of establishments, sales and employment by employee size of establishment (9 categories), and estimates on up to 10 sub-industries, including car, truck and recreational vehicle repair and engine repair and rebuilding.

Table Of Contents :

Users’ Guide
Industry Definition and Related Industries
Industry Establishments
Sales and Employment Trends
Financial Ratios
Establishments
Firms and Payroll
Sub-Industries – 2009 Estimated Industry Sales ($Millions)
Sub-Industries – 2009 Estimated Number of Establishments
Sub-Industries – 2009 Estimated Number of Employees
5-Year Trend – Estimated Industry Sales ($Millions)
5-Year Trend – Estimated Number of Establishments
5-Year Trend – Estimated Number of Employees
2010 U.S. Metropolitan Areas – Estimated Number of Establishments
2010 U.S. Metropolitan Areas – Estimated Industry Sales ($Millions)
2010 U.S. Metropolitan Areas – Estimated Number of Employees
2011 U.S. Metropolitan Areas – Estimated Number of Establishments
2011 U.S. Metropolitan Areas – Estimated Industry Sales ($Millions)
2011 U.S. Metropolitan Areas – Estimated Number of Employees
2010 U.S. States – Estimated Number of Establishments
2010 U.S. States – Estimated Industry Sales ($Millions)
2010 U.S. States – Estimated Number of Employees
2011 U.S. States – Estimated Number of Establishments
2011 U.S. States – Estimated Industry Sales ($Millions)
2011 U.S. States – Estimated Number of Employees
Definitions and Terms

To know more about this report & to buy a copy please visit :
http://www.visionshopsters.com/product/2283/2010-U-S-General-Automotive-Repair-Industry-Report.html

Contact us:

Visionshopsters
Ph : 91-22-40583000
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Website : www.visionshopsters.com

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China car navigation services will accelerate the integration with the communications industry – car navigation, communication – Automotive

October 14th, 2011 | Author: admin

Intelligent Transportation Systems is the world’s cutting-edge research in the field of transport issues in developed countries and implementing a series of research projects, the core is in response to increasingly heavy traffic demand and environmental pressures, the use of information technology, communication technology, computer technology, control technology, the traditional transport systems in-depth reform to improve efficiency in the use of system resources, system security and reduce resource consumption and environmental pollution. Intelligent Transportation Chinese cities is accelerating the pace of development, particularly in Beijing, Shanghai and other large cities. Some features of vehicle information systems and related services, can be an important complement to intelligent transportation, intelligent transportation integration with China will accelerate the development of vehicle information services market. According to the experience in developed countries, in a mature car market, car sales throughout the automotive industry profits accounted for about 20 percent of profits, supply parts and components accounted for about 20 percent of profits, while 60 percent of the profits generated by the field of automotive services. China’s auto market competition in the field of vehicle sales more and more intense competition in the automotive industry chain is the focus shift to the automotive aftermarket, including vehicle maintenance, beauty, conversion, navigation, surveillance, telematics services and other fields of automotive service China’s auto market will become a new profit growth industry. Vehicle navigation enterprises should fully understand the operation of integrated information services, a huge potential market value, and its necessary follow-up study.

Present, and intelligent transportation relations and is most closely the real-time traffic information for the user released, although the release forms and networks, the current standards are not uniform, but whether to take that form, car information products should have the corresponding functions makes the development of the sub platform with real-time traffic information services. The construction of intelligent transportation systems, should help to improve traffic management business and management level, to management for efficiency, the direction to resources. As an important participant in urban transport groups of private cars will be smart traffic, thus promoting pre-installed navigation system is installed to further improve the rate.

Authoritative advisory body based on data from the navigation system car navigation industry view of the market size, installed navigation systems by 2009 the market scale of 5.572 billion yuan, up 6.8%, and 19.2% in the year 2008 growth rate and 5.216 billion yuan compared with the absolute income, growth rate decreased significantly, and its growth and the automotive industry’s growth is not synchronous, mainly because of low passenger growth, faster, and navigation terminal hardware prices fall faster .

Car car navigation electronic map markets in 2009 sales volume was 362 million yuan, a slight increase compared with 2008, a growth rate of 7.5%.

In accordance with the authority of the advisory body to forecast China’s 2014 pre-installed navigation car sales will reach 1.587 million units, the assembly rate will be close to 7%.

China has become the world’s largest auto market, an effective form of Intelligent Transportation, car navigation industry development.

Short, as people in the car to enjoy increasingly strong demand for services. Enterprises should focus on vehicle-vehicle information system, the full integration of automotive technology and mobile communications technology. Real-vehicle information system has two network, one-car electronic networks, the other is associated with the outside world communication networks. Currently, many of China’s car information system products are not very good integration of these two networks, some of the products communicate only with functions, not associated with the vehicle bus, making navigation device features and functionality in their applications have been carried out a certain limit. As the largest provider of navigation maps of high German companies, government and business services in Beijing Mobile cooperate with the first major cities in China implemented the “urban management through” management system and laid the implementation of relevant norms. Currently, the German software has been involved in the Shanghai, Nanjing, Jinan and more than 20 areas of “urban management through” project implementation, while further expanding the “real-time communications tax” and other location-based wireless network of government services, also participated in the 2008 Olympic Sailing Committee of Beijing Olympic Games, positioning and monitoring related to the project scheduling system. 2009 software for high-Tak vehicle navigation electronic map in China reached 51.2% market share year on year in 2008 improved by 2 percentage points, to obtain market share the first results. High German will consolidate the current navigation electronic map in China leading supplier of products and services based on the position to lead more with the electronic map-related services and applications; the future will navigate electronic maps and a comprehensive POI database, based on collaboration of the navigation efforts to establish a unified chain of location services platform, and achieve seamless integration with a variety of applications and interactive network to provide users with comprehensive location services. A new generation of 3D high German BMW navigation map of the Chinese market before it is three-dimensional navigation in the Chinese car debut. Three-dimensional navigation in the car before the installation in the field of application of the landmark, which is a new generation of high-end German navigation technology in a dominant display. Automotive industry will accelerate the integration of development and communications.

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