The car industry is going through some major changes, and some of the best car manufacturers are going to be the ones that are able to take advantage of these changes. In this article, you will learn about some of the companies that are making the biggest strides, as well as some of the big trends that are in the works.
General Motors’ struggle to turn itself around
The world’s largest automaker, General Motors, has been on a downhill trajectory for years. Over the past decade, it has watched key competitors push ahead of it in the global sales race. With little cash on hand, GM is now desperate to obtain government money to stay afloat.
A look at GM’s corporate portfolio reveals a multi-level set of products, including models within brands, markets, and even supply chains. This proliferation of products has negatively impacted the company’s cash flow. In fact, GM has been losing money for decades in various parts of Latin America.
One of the most important components of a portfolio is market focus. Without a market focus, a portfolio will not be able to generate the positive cash flow it needs to thrive. Specifically, a company must have a high market share in a particular segment.
Toyota’s partnership with Honda
The partnership between Toyota and Honda is one of the most significant partnerships in the automotive industry. Both companies set high standards for their partners and they expect to see them meet them. They also expect their partners to help them in their goal of improving profits.
One of the ways Toyota and Honda help suppliers is to establish learning links. They use elaborate systems to monitor their suppliers’ performance. This helps them to ensure that their vendors can meet their goals. For example, Toyota has checklists for hundreds of measurable characteristics for each component. It teaches its suppliers how to collect data, so they can produce precise results.
Another important element of the partnership is the guest engineer program. This allows suppliers to work with parent company engineers to develop designs.
Mercedes’ electric push
Mercedes has announced that it will go all-electric by the end of the decade. The company plans to invest about $47 billion in this effort, which will include building eight new battery factories. In addition, it is planning to build three new all-electric vehicle platforms by 2025.
Electrification will also impact Mercedes’ motorsports division. Zetsche said that the company aims to become carbon neutral by 2039. It is also making an effort to comply with the European emissions rules.
Several automakers have promised to transition to mostly electric vehicles. Mercedes is stepping up its efforts, but still lags behind others. However, the company is working toward a goal of achieving 100% EV sales by 2030.
As part of its strategy update, Daimler has outlined a plan for an all-electric future. This plan builds on previous goals for more EVs. And although it will have to reinvest profits from the first half of the decade to make it all happen, the company believes that demand for battery-powered cars will grow in the second half.
Chrysler and Daimler-Benz merger
The Chrysler and Daimler-Benz merger is a major accomplishment. It is also one of the largest corporate mergers in modern history. A combination of smarts and a little luck resulted in the creation of a plethora of automotive products. Some of the best known are the Jeep Wrangler, Chrysler Pacifica, and Dodge Durango. In 2001, Daimler-Chrysler built a new factory in Toledo, Ohio.
In terms of size, this is a slick company, with a staff of 40,000 at the Toledo plant and a head office in Detroit. There are plans to build a second, larger Toledo facility in the works, although no timetable has been set as of yet. This merger will help GM become a player on the global stage.
The big question is, will GM be able to keep up with the competition? If the answer is yes, will it be an automotive behemoth or an automaker with a well-defined niche?
Hurricane Ian
Hurricane Ian is causing a lot of havoc. This storm brought high winds, torrential rain, and a strong storm surge to the area. It also damaged thousands of cars. Some experts have estimated that up to 70,000 vehicles were destroyed in the area.
While it’s unclear what impact Hurricane Ian will have on the auto industry, it could be significant. The national car market has been in turmoil for more than a year.
New vehicle inventories are tight and pandemic-driven supply-chain issues have led to a surge in the used-car market.
As more cars go up for sale, consumers should be wary of buying flooded or flood- damaged vehicles. Many of them are not roadworthy, and could put family members at risk.
Flooded vehicles are susceptible to excessive moisture, saltwater, and rust. They may have mold or bacteria in their ventilation systems or on the upholstery. Even brake discs can be rusted out.
