Archives for March 2015

Wednesday morning car news roundup, March 18, 2015

Today is Wednesday

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Auto Industry 101.3: The trouble with China

Chinese police drives trucks that officially shouldn't be in China

Chinese police drives trucks that officially shouldn’t be in China

 

China is one of the very few auto markets to show solid growth, with good prospects for decades. We learned this in yesterday’s installment of Auto Industry 101. Today, we look a little closer at China, as close as the big country allows in less than 1,000 words. This short course is written due to the recent interest in disrupting the auto industry. The course is bite-sized, and kept extremely simple, Auto Industry for the Twitter Generation. Those in the industry will find nothing new. Those new to the industry hopefully will find a helpful primer.

The Chinese auto market is a Tiger. It’s big, it’s fast, and it can eat you alive. Responsible for the huge market are Deng Xiaoping, and western investors. Deng invited western automakers to China. Volkswagen and American Motors followed his call. (If you are interested in the inside story of why and how VW came to China, let me know, and I may tell it. For AMC, ask Michael Dunne.) Then, VW and AMC languished in China for two decades. Nothing happened until western investors started pouring money into China at around the turn of the last century. Fueled by Dollars, Euros, and Yen, the Chinese car market exploded.

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Tuesday morning car news roundup, March 17, 2015

Today is Tuesday

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EU car sales are up, longterm, the market is trending down

Next exit Andorra

Next exit Andorra

February new car registrations are out, published by EU auto manufacturer umbrella organization ACEA. EU passenger car registrations were up 7.3 percent for the month, again mostly driven by a re-awakening South (Spain +26.1 percent, Italy +13.2 percent). Germany (+6.6 percent) and France (+4.5 percent) finally show a little life. [ There is more … ]

Auto Industry 101.2. Today: Whither the growth?

What, that's it?

What, that’s it?

Yesterday in Auto Industry 101, we covered the tepid growth of the same. Today, we look into where the industry is growing, and where is doesn’t. This short course is written due to the recent interest in disrupting the auto industry. The course is bite-sized, and kept extremely simple, Auto Industry for the Twitter Generation. Those in the industry will find nothing new. Those new to the industry hopefully will find a helpful primer.

For the last 10 years, the global auto industry has grown at an average annual rate of just 3.4 percent. Ten years ago, 66 million automobiles were sold worldwide. In 2014, it was 88 million. Let’s begin with a look at where the auto market definitely is not growing. [ There is more … ]

Monday morning car news roundup, March 16, 2015

Today is Monday

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Auto Industry 101. Today: How big?

A growth market it is not

A growth market it is not

Due to the recent interest in disrupting the auto industry, here a short course in same. The course is bite-sized, and kept extremely simple, Auto Industry for the Twitter Generation. Those in the industry will find nothing new. Those new to the industry hopefully will find a helpful primer

The auto industry is one of the most complex and, next to pornography, one the most alluring in the world. How big is it? Statista puts the 2013 revenues of the world’s 17 largest automakers at 1.25 trillion euro, or 1.31 trillion USD. This number is skewed by the undervalued Euro. A year ago, and with a stronger Euro, the same revenue was worth 1.75 trillion USD. The global auto industry consists of some 50 players, and not of 17. Large companies such as Volkswagen, GM, or Toyota use the equity method for their China operations, China does not show up in their revenues. China is about one third of Volkswagen’s and GM’s business. It is probably a safe bet to estimate total worldwide annual auto manufacturer revenues at around 2 trillion $US. Total industry size, including ancillary businesses, such as parts, service etc., is probably twice that. That would be a generous $4 trillion, and a healthy chunk of business. However, it is not the $10 trillion that are frequently thrown around.

That was the good news. [ There is more … ]

Saturday morning car news roundup, March 14, 2015

Saturday-night-live

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