Failure of the Automotive Industry – The Main Explanation

The US automotive industry suffered a fatal blow. Yet anyone who claims that the industry’s demise may be linked to a single root-cause of failure is sadly mistaken. I spent the higher portion of 10 years within that industry many of which in an executive or managerial part.

However, there’s no silver bullet that caused the fall. I say sadly for the reason that a single trigger of failure might be prevented within the future. Within this case, the blame can be put only on the program as a whole generating it complicated to defend against a repeat occurrence.

What the automotive industry suffered was a catastrophic failure brought on by various points of failure. We’re talking systemic failure in its truest form. As an insider within the sector, I can personally attest to a few of the actions (or lack thereof) that pushed the sector to a collapse.

One particular of your greatest gremlins that undermined the sector was a myopic concentrate on piece price (cost). More than the years the automobile manufacturers became completely engulfed in driving (no pun intended) suppliers to decrease sell costs in an attempt to lower the production price of a car or truck or truck and consequently raise the bottom line.

This shortsighted focus on decrease piece price was so robust that supplier relationships have been sacrificed. A single in the Significant 3 automotive firms believed that if a single supplier went under that an additional would normally step up. How is that … Read More ...

Latest in the Automotive Industry News

Latest in the Automotive Industry News

The latest in automotive industry news is that Nissan has big plans. Just when the Indian car market is sparked to heat up, one of the major car manufacturers in the world, Nissan, has made some big plans. Nissan Motor India Pvt. Lts. has opened a new corporate office. The location is T. Nagar, Chennal. The person at the helm of leadership will be Kiminobu Tokuyama. Also present at the inaugural were representatives of the Nissan partnership, Renault Nissan Automotive India Private.

Nissan has big plans. One of these is the fact that they will cover 85 per cent of the Indian market by the year 2012. This will evolve as a result of the proposed 11 operating dealerships being in place by the end of this year. This number is expected to increase to 55 dealers in two years.

Another lofty goal Nissan hopes to attain is in exportation. Next year the car manufacturer plans to outsource $20 million in components and double this amount within two years. Along with this goal Nissan plans to export cars. They plan to export to countries until they reach 100 worldwide.

According to automotive industry news, Nissan will begin producing the Global Compact car in their Indian facility next year. Nissan has made it clear that they plan to be a major player in the Indian market just as they have been in the United States and other countries. The production of the compact car will happen in their new corporate facility … Read More ...