The World's Automakers and Brasil challenges !

Here�s what the world looks like to a car guy in Detroit right now: In the U.S. new regulations are cranking up costs while cautious car buyers creep back into showrooms. China�s once-hot sales are cooling�fast. Europe is a total basket case, with too much production capacity and an allout price war. Carmakers from General Motors and Ford Motor to Volkswagen and Daimler warn of difficult times ahead. Market conditions, says VW Chief Executive Martin Winterkorn, have become �noticeably harder and tougher.�

But bring up Brazil and you get a smile. No, they�re not looking forward to a Rio vacation or a cheap retirement. What carmakers see when they look at Brazil is South America�s largest consumer market, a still-bustling economy�and a lot of potential customers. Forget that in the world�s fifth-largest country only 14% of the roads are paved. Incomes are rising, lifting almost 40 million more Brazilians into the middle class since 2003�and putting a vehicle purchase within their reach for the first time. �Brazil is at a critical point right now,� said Guido Vildozo, a Latin America specialist at market research firm IHS Automotive, noting that the country�s GDP has topped $10,000 per capita. �That�s a milestone. If you look back at the U.S., Europe, even Korea, you�ll see that this is when markets move to a growth stage. This is why we�re suddenly seeing all the carmakers focusing on Brazil. They want to try to capture a slice of that pie.�

Anfavea, Brazil�s auto industry trade group, forecasts sales will increase 68% from 3.4 million units in 2011 to 5.7 million by 2016, despite a massive tax burden and high borrowing costs that drive up car prices. (In the U.S. sales are forecast to rise 30%.) As early as 2015 Brazil could overtake Japan to become the world�s third-largest car market after China and the U.S., according to Roland Berger Strategy Consultants.

Volkswagen, Fiat, GM and Ford have dominated Brazil for years, with 84% of the market in 2007. But that number is dropping as new players rush in. By 2015 it�s expected to fall to 70%, according to market researcher J.D. Power and Associates. Pressure is coming from global rivals like Kia, Hyundai, Honda, Nissan and BMW, as well as new players like China�s Chery, Geely, JAC and Hafei, and India�s Tata and Mahindra.

Competition is only one problem for Detroit�s Brazilian operations. The government is another. Spooked by the flood of foreign-built cars, President Dilma Rousseff, a onetime Marxist and late convert to capitalism, grabbed for a comfortable crutch earlier this year: tariffs. She raised the tax on imported cars from 25% to 55%. Brazilian shoppers eyeing popular models like a Toyota Corolla, which sells for $16,230 in the U.S., were shocked by sticker prices of $29,000.

Because Mexico was exempt under a regional trade agreement, carmakers figured they could just ship more vehicles from their Mexican factories. That didn�t set right with Rousseff, who slapped a quota on Mexican imports. Carmakers can pay less tax on imports if they do more engineering work in Brazil and use mostly Brazil-made auto parts in their local factories. �Brazilian consumption has been appropriated by imports,� Finance Minister Guido Mantega said in announcing the tax. �We are the fifth-largest automobile market in the world and the seventh-largest producer, but we risk losing our position if we don�t take measures.�

Luckily, all the policy wrangling to bolster Brazil�s industry was trumped by headwinds from the worldwide economic crisis. In May Rousseff�s government enacted tax cuts and lower interest rates to spur consumer spending. The economy bounced back, as did car sales. The stimulus measures have been extended through October, prompting predictions of a second-half boom.

Manufacturers have learned their lesson, though. GM, Ford, VW, Fiat, Toyota, Hyundai, Nissan, Honda, Renault, Peugeot and Chery are among the companies adding or expanding factories at breakneck speed, with plans to invest some $25 billion in Brazil by 2016, adding 1.5 million units a year of production capacity. That doesn�t include investments by auto parts suppliers.

For GM and Ford the ramp-up is especially tough. They tolerated high labor costs and low manufacturing productivity for years in South America, while they focused on growth markets like Asia, which had more immediate potential. While auto industry wages in Brazil have risen 125% in ten years, productivity has increased only 22% due to a lack of automation, poor training and high energy and steel costs.

Both GM and Ford reported lower operating results in the region thus far in 2012. While currency and global economic issues are partly to blame, they�ve also been hurt by outdated product lineups. Both companies are revamping their cars to keep consumers interested�and margins profitable.

GM, for example, is launching seven new products this year in Brazil, including the Chevrolet Spin sport-utility and Colorado pickup. Ford, meanwhile, is rolling out a new small SUV, the EcoSport, along with a redesigned Ranger pickup and the next-generation Ford Fusion. �By 2015 we will have all global platforms in Brazil,� said Rogelio Golfarb, a vice president at Ford South America. �We are caught right in the middle of the transition.� With so much competition, mostly in smaller vehicles, he said, �it forces you to be real efficient. That�s the challenge of Brazil.�

But not the only one. The government�s shifting policies have also made it hard for automakers to make long-term decisions.

�The government has thrown a few curveballs over the last six months or so,� says Robert Shanks, Ford�s chief financial officer, who says the company set up its manufacturing footprint in Mexico and Argentina to take advantage of free trade agreements between Brazil and those countries. Now it has to start over. �That�s not something we can respond to overnight.� Given the global auto market these days, they�ll have no choice but to try.
ref: www.forbes.com

How is Mexico passing Brazil, as the top Latin American Car producer ?

Mexico is poised to overtake Brazil as the top Latin American automobile producer for the first time in more than a decade as surging exports to the U.S. spur factory openings and record output.

After nosing ahead of Brazil in the first six months of the year, Mexico is projected to hold its advantage through 2014, for the first full-year lead since 2002, according to consultant IHS Automotive.

Mexico�s ascent is being fueled in part by auto sales running at the fastest pace in almost eight years in the U.S., the country�s largest market. The boom coincides with a slump in Brazilian production through June as domestic demand cools, setting up a shift in leadership of the Latin American industry faster than analysts predicted.

�The wind is in our sails� in Mexico, said Luis Lozano, lead automotive partner at PricewaterhouseCoopers LLP, in a telephone interview from Mexico City. �People talk about the energy and telecom industries in Mexico, but the auto industry is going to continue as the icon of this country.�

Eclipsing Brazil, where output has fallen 17 percent this year, would vault Mexico to No. 7 among the world�s largest auto producers. China and the U.S. lead the global pack.

Brazil reported today that light-vehicle output fell 32 percent in June from a year earlier to 205,207 with exports plunging 52 percent. Mexico reported today auto production rose 7.9 percent in June from a year earlier to 287,344. Exports rose 2.1 percent.

This year�s diverging fortunes of Mexican and Brazilian auto production reflect the state of their biggest markets. Brazil-made cars and trucks are too expensive, given high labor costs and taxes, to send abroad and go mostly to local buyers. Mexican factories export eight of every 10 cars they produce -- with more than half going to the U.S.

Economic Divergence
The auto industry epitomizes the underlying economic fundamentals in the two countries. Mexico is starting to see signs of rebounding after growth missed forecasts in seven of the past eight quarters, while Brazil cut gross domestic product estimates for this year and next and boosted inflation forecasts. Economists project that the Mexican economy will grow 2.8 percent this year compared with 1.3 percent in Brazil.

Light vehicle output in Mexico rose 7.4 percent through June to 1.6 million vehicles, bolstered by new plants for Nissan Motor Co. (7201), Honda Motor Co. (7267) and Mazda Motor Corp. (7261), according to the Mexican Automobile Industry Association, known as AMIA. Brazil�s total was 1.47 million, according to Anfavea, Brazil�s automaker association.

Mexico�s proximity to the U.S. also gives it an advantage, as do labor costs for automakers that are about 20 percent of U.S. levels, according to Pricewaterhouse Coopers.

�The broader significance is the appeal of Mexico as the production source for North America,� Bill Rinna, senior manager of North American forecasts at LMC Automotive, said in a telephone interview from Troy, Michigan. LMC forecasts Mexico to overtake Brazil in 2016.

Surprise Win
While Mexico�s exports to the U.S. rose 16 percent through June, Brazil�s shipments to its top trading partner, Argentina, declined 28 percent through May according to Anfavea. Within Brazil, consumers have slowed purchases because of tighter credit and a weakening economy.

Mexico�s surge caught some industry watchers by surprise.

�At the beginning of this year, we basically did not have Mexico overtaking Brazil at any point in time,� Guido Vildozo, Latin America analyst at IHS Automotive, said in a telephone interview from Lexington, Massachusetts.

Even as exports are buoying Mexico�s auto industry, the low level of domestic sales is a weak spot, according to AMIA President Eduardo Solis. New car sales in Mexico totaled 1.06 million last year. Mexico should restrict used-car imports from the U.S. more stringently, he said.

�We have record production and exports and a domestic market that just isn�t turning the corner,� Solis told reporters June 10 in Mexico City.

Diplomatic Confrontation
Mexico is likely to produce 3.1 million autos this year, according to Solis, who said he was unsure whether the nation would build more than Brazil. IHS is forecasting Mexican output of almost 3.2 million, ahead of Brazil�s 3.17 million.

Mexico�s auto-production gains combined with Brazil�s losses may lead to a diplomatic confrontation this year between Latin America�s two biggest economies, according to Augusto Amorim, IHS Automotive�s analyst for South America.

In 2012, Mexico agreed to limit car exports to Brazil for three years after a surge in Mexican shipments to Latin America�s largest economy. That led to a 23 percent drop in Mexican-made vehicles exported to Brazil last year, according to AMIA.

While the pact is set to expire in March 2015, Brazil may look for ways to extend it, Amorim said. AMIA will probably meet with Anfavea and a similar trade group from Argentina this summer, Solis said.

Production Chain
�We are still in negotiations for both countries to have successful results,� Brazil�s ministry of development, industry and external commerce said in an e-mailed response.

�The commitment is to get back in 2015 to a free market,� Mexico Economy Minister Ildefonso Guajardo told reporters July 3 in Mexico City.

Automakers� investments show the importance of both countries in the global production chain.
After the recent Mexico plant openings by the Nissan-Honda-Mazda trio from Japan, a combined investment valued at $4 billion, Germany�s Audi AG is building a $1.3 billion plant to assemble the luxury Q5 sport-utility vehicle.

Bayerische Motoren Werke AG announced plans last week to invest about $1 billion in a new factory in Mexico, that will produce about 150,000 cars a year. And in June, Daimler AG and Nissan said they would jointly produce luxury vehicles, including Infiniti compact cars, at a new $1.4 billion factory in Mexico, the biggest project to date in their four-year-old partnership.

Big Volumes
�Whatever is made there can be exported,� to any of the more than 40 countries, including the U.S., that have free trade agreements with Mexico, IHS Automotive�s Amorim said. �When you have Mexico adding a new factory to source the entire world, then you�re talking about big volumes.�

In Brazil, Nissan opened a $1.5 billion complex in Resende in April, and Chery Automobile Co. has a $530 million factory in Sao Paulo state debuting this year, marking the Chinese automaker�s first major investment outside its home country.

New factories being considered for both countries in the coming years may mean neck-and-neck racing for the lead in Latin American production, according to IHS Automotive and LMC Automotive.

Rinna, the LMC Automotive analyst, predicts that Mexico will hold the top spot from 2016 until 2021, when Brazil wrests it back. By then, the combined auto output of the two nations would be 8.83 million vehicles, 38 percent higher than in 2013.

ref: www.bloomberg.com

While Electric Car Owners, are asleep - Tesla

Frankfurt Auto Show
http://www.teslamotors.com/ 

Electric vehicles are entering the mainstream, with the sporty Tesla having sold 30,000 vehicles so far, and recent moves designed to greatly expand the use of innovative battery technology.

However, as more of these cars hit the road, they place unique strains on the electric grid.

Households with electric vehicles guzzle juice from the grid at night in order to get charged up for the next day, according to a new analysis by Opower, a company that provides cloud-based software to the utility industry. And that could be a problem in the long run.

As electric vehicles go mainstream, utilities may need to continue nudging consumers away from plugging in during peak periods of energy demand, the analysis suggests.

The numbers also show that electric vehicle owners are far more likely to have rooftop solar panels than non-electric vehicle owners, which helps offset some of their electrical consumption from coal and natural gas-fired power sources.

Image : Opower

At night, the average power consumption of many electric car households is four times higher than typical levels, Opower reports. The company maintains a database of energy use in more than 50 million households, and is in part a consulting firm to electric utilities, working to help them become more energy efficient.

The company's analysis compared data from about 2,000 electric vehicle owners in the western U.S. who charge their cars at night, to data from nearly 100,000 typical households in the West. The data includes electric vehicles other than Teslas, such as the Nissan Leaf and other plug-ins.

Opower plotted the average hourly grid electricity use of electric vehicle owners compared to typical households with gasoline-powered vehicles. Between midnight and 7 a.m., electric car households used three times as much energy than non-electric vehicle owners did. Researchers found a major spike in energy use from electric vehicle households starting at about 10 p.m., peaking around midnight, and then declining toward 6 a.m.

It's no coincidence that the electric vehicle owners in this study tended to charge their cars at night, since their owners signed up with their utilities to secure discounted electric rates late at night, with higher prices during the day. Opower says its data clearly shows that when consumers sign up for such electricity rate frameworks, they take advantage of them, and this data could encourage utilities to roll out more programs like this.

Such arrangements are advantageous for utilities because they help reduce the electricity demand during the day, when overall demand is highest and the risk of overloading the grid is elevated.

                                                                                                  Image : Opower

Several states have implemented off-peak charging incentives to encourage electric vehicle owners to charge their cars at night, including Texas and Georgia, in addition to the more environmentally conscious California.

Interestingly, Opower found that electric car owners still use more power than their peers during the day. The company explained this by noting that compared to the average household, owners of electric cars tend to be more affluent, with larger houses and more swimming pools than households without such cars. Also, some owners may be plugging their cars in early in the morning or earlier in the evening, missing the low-cost window.

On the other hand, electric vehicle households are also far more likely than typical households to own rooftop solar panels, which cuts their midday energy use and sends power to the grid. In the West, one out of 13 electric vehicle households have rooftop solar installations, compared to just one out of 86 typical households.

If you are an electric vehicle owner without rooftop solar energy, however, it's still likely that you're using more grid electricity than a typical household.
ref: http://mashable.com by Andrew Freedman

Auto Brilliance and BMW !

A specialized group of domesticChinese auto manufacturers are seeing an increase in their ranks as the local auto markets continue to grow and change with the times. Not only is China at the forefront of research and development regarding clean energy and fuel efficient technology, but they are also becoming an increasingly large influence upon the international automobile industry as well.

                Many international car manufacturing companies conduct business in China; among them are BMW, General Motors, Toyota, Nissan, and Honda for starters. The Chinese government requires any international car company that wants to do business in the country to market its cars under different brand names and in cooperation with domestic Chinese car companies, usually in the form of a partnership or a joint venture agreement.

                This policy was instituted in part to grow the international sharing of technology information regarding the cars between the international companies seeking to do business in China and the domestic Chinese car manufacturers who can trade their expertise for much needed outside knowledge. These joint venture partnerships between domestic and international car manufacturers insure the growth of domestic car companies like Amsia Motors in addition to taking advantage of the foreign business investments international companies continue to pump into the Chinese auto industry.

                BMWhas formed a joint venture with the Auto Brilliance Group which also has a partnership with Amsia Motors, a successful Chinese auto manufacturer. Together BMW and Brilliance Automotive have announced the creation of theZinoro brand, an electric car that meets the clean energy requirements of the Chinese government while still being a decent competitor to similar car models from other international companies like Toyota.

                The Zinoro brand will build its cars at the Tiexi plant in the northeastern city of Shenyang, China, under the auspices of the BMW Brilliance Automotive Corporation. Zinoro (which means �honoring promises�) will join the likes of the BMW 3 series, 5 series, and X1 that are also manufactured at the Tiexi plant. The Zinoro model is estimated to go on sale in the first few months of 2014.

                The Zinoro electric car will join other joint venture models and compete with the variety of car models coming from Toyota, GM, Honda and Nissan. BMW has mentioned their high hopes for the Zinoro as well as their other existing models, citing a 5% yearly sale average this year and remaining close behind Audi as China�s leading foreign automobile manufacturer in terms of sales. BMW has seen a 7.5% increase in the first 3 months of this year in sales alone and estimates a continued level of growth after the first few months of the sale of the Zinoro.

                The BMW joint venture with the Brilliance Auto Group and Amsia Motors is doing better than the Mercedes-Benzline, which has declined in sales nearly 12% this year already. Domestic car companies like Amsia Motors will continue to benefit from joint venture partnerships like the one BMW has maintained with the Brilliance Auto Group.

Bentley goes GREEN ?

Bentley joins the go-green effort by introducing its first powertrain choice to the luxury automotive sector.

The British luxury car manufacturer announced the launch an all-new SUV version equipped with its hybrid concept will be available in the market starting 2017.

�There is no doubt that plug-in hybrid technology is true to Bentley�s values of outstanding luxury and effortless performance. Combining our renowned engines with electric power reinforces and enhances both principles, and so we will gradually introduce this powertrain across our model range. By the end of the decade, at least 90% of our production will be available as a plug-in hybrid. We are proud to be pioneering these developments in the luxury sector,� said Dr Wolfgang Schreiber, Chairman and Chief Executive of Bentley Motors.

The Hybrid Concept is based on the flagship model in the Bentley family, the Mulsanne.

Copper will be used as an exterior and interior styling element to highlight the car�s electrical veins, including copper details to the headlamps, radiator shell bezel, brake calipers, feature line details and badges.

Bentley boasts that the plug-in hybrid system will offer a power increase of up to 25% together with a 70% reduction in CO2 emissions and will also be capable of driving at least 50 km on electric power alone.

ref: http://www.arabianbusiness.com/

BMW and their Chinese investment Partners, gains 52% profit.

BMW�s Chinese investments are paying off in their domestic partnership with local Chinese auto manufacturers as profits, stocks and sales continue to grow. Profits from BMW�s partner, the Brilliance Automotive Group, experienced a 52% increase in demand for their new and past models in China this year alone. Experts estimate that the demand for new cars as well as past models will continue to grow as China remains the world�s largest market for automobiles.

                The Brilliance China Automotive Holdings Ltd. Had a net income increase of $332 million dollars, or 2.03 billion yuan, up from the previously reported 1.33 billion yuan. The Hong Kong stock exchange has been the meeting point for industry leaders eagerly awaiting news of the successes of foreign and domestic Chinese automotive market happenings.

                 BMW looks to be poised to make China its biggest buyer of its automobiles, most predominantly the latest 5-series sedan which has been met with much industry and consumer excitement in China. Other BMW car series are popular amongst Chinese drivers, too.

                Although BMW and its partners in China are currently not at the top of the Chinese industry- that accomplishment goes to Audi- they have experienced greater growth year on year according to recent records. This increasingly high level of revenue and growth has BMW and Brilliance China Automotive Holdings Ltd. in good position to take the lead from Audi in the Chinese market, also allowing the Chinese auto market to become a bigger arena for sales than the United States.

                The joint venture partnership between BMW and Brilliance China Automotive Holdings Ltd. has seen continued success in the Chinese market with existing BMW models like the 3 and 5-series. Their new electric car model (called the Zinoro) will be debuted and sold by the end of 2014 and the hype around this new vehicle has continued to increase both abroad and in China. BMW has high hopes for the success of the Zinoro in the Chinese market as it fits perfectly within the new environmental laws that the Chinese government has put in place to increase fuel efficiency in new vehicles to decrease the pollution problem.

                The Brilliance Automotive Group in partnership with BMW is planning to expand their production facilities as well in order to keep up with the demand the Chinese market has for their cars. The demand for cars went up 31% in 2013 and has increased in the first few months of 2014 making this move smart and economical for the company. Their existing production facilities will be used to build the much anticipated hybrid model of the 5-series sedan, which will theoretically hit the market sometime in the year 2015.

                Domestic Chinese production of BMW cars will also be expanded to include a greater variety of models that will be available in China in coming years; in cooperation with BMW and the Brilliance Automotive Group the models will be available at an increasing number of dealerships around the country.

                The world is ready and waiting to see where BMW will succeed next.

18% Automotive sales jump in February 2014 !

Chinese car sales have jumped by 18% in the month of February, which has prompted an increase in hope for the Chinese auto industry. Global auto market analysts underestimated the amount of passenger car sales that China made last month and have continued to adjust their speculation for the remainder of the year in light of the market�s strength so far this year.

                Both the Toyota Motor Corporation and the Ford Motor Company saw wholesale deliveries of passenger vehicles increase in the Chinese market this year. 1.31 million units were delivered in the month of February alone; expert automobile industry analysts had estimated that the Chinese auto industry would need approximately 1.27 million units in February. The China Association of Automobile Manufacturers reports show not only an increased amount of cars being sold in China, but that a growing amount of foreign and domestic investments in the Chinese auto industry is serving to strengthen the domestic market all the more.

                In China the sale of every vehicle, from buses to trucks to sports utility vehicles and sedans, showed a marked improvement over recent years. Total vehicle sales were reported as being 18% higher than previous months with a total of 1.6 million units that were ultimately purchased by consumers. In January and February of 2014 alone the Chinese auto market saw an increase in vehicle deliveries jump 11% with a final delivery count of 3.75 million units.

                International brands like Toyota and Ford have continued to perform well in the Chinese auto market and familiar Japanese brands like Hondaand Nissanare also seeing resurgence in interest after a slight geopolitical dispute markedly slowed down auto deliveries from Japan; depressed sales of Japanese cars in China were another side effect. Toyota�s car sales increased by 43% and Honda saw a leap of 28% as well. Ford saw the biggest percentage increase in sales coming in at 67% with 73,040 units being shipped to China in February. General Motors reported an increase of 20% with its leading cars being the Wuling and Cadillac.

                China�s domestic car brands made up 38.4% of total sales in the month of February, reported the China Association of Automobile Manufacturers. In part because of the pollution problem that plagues China�s major cities, domestic and international investments have been funneled into research and development of domestic clean energy and fuel efficient cars. This market for cleaner technology in China�s automobiles is certain to continue growing in the coming years.

                The continued support of international investors and brands has obviously boosted the Chinese auto market; its domestic brands, while still relatively small, are also beginning to see more international recognition and market interest as well. The growth of domestic Chinese car brands like Amsia Motors to international markets is expected as new models and products are unveiled.

                The international investments and domestic Chinese auto growth spell out a bright future for China�s automobile market to continue increasing sales and profits. Here are a few sneak peeks of what they have in store!

China Association of Automobile Manufacturers & Foreign investors.

Amsia Motors, RANGER Long distance Bus.

The domestic Chinese auto market has seen an increase in foreign investors to the extent that they now make up the majority of the Chinese auto market for the first time in a long while. While China is dominating the markets in technology and other industries their domestic auto market has not seen as big of advances as they would have hoped going up against bigger and more prepared foreign automobile manufacturers.

                The China Association of Automobile Manufacturers (CAAM) does mention in their annual report of the state of the Chinese automobile market that domestic Chinese car manufacturers did see an increase in domestic car sales up 7.5% from November of 2012 and up 5.5% from October of 2013. While the domestic auto manufacturers market is not growing as quickly as the foreign car market is there is still growth being seen in the domestic sector, bringing continued hope to domestic car manufacturers.

                In 2013 domestic Chinese automobile sales increased 11.5% while maintaining a 40% market share in the domestic Chinese automobile market. The Chinese government is attempting to create a series of incentives and subsidies to encourage the sale of domestic Chinese cars to the population while also instituting technology transfers between domestic car companies to level the playing field and create a stronger domestic manufacturing environment to better forge ahead in the years to come.

                Although these measures are being taken to increase the domestic market share of local Chinese car companies China is also searching for ways to profit off of the ever-booming foreign car market. The state may decrease its high tariffs on foreign cars and ease some of the restrictions on foreign automobile companies that do business in China, making it easier and more profitable for foreign car companies to do business in China.

Amsia Motors, KOMI Smart Cart, 2014 new model.

Despite the pressure on the domestic Chinese car market to keep up with production and sales foreign car manufacturing companies are still investing more into the Chinese market than the domestic companies themselves are willing or able to. In addition to investing foreign car manufacturing companies have the advantage of putting out new models of cars at a quicker rate than the domestic Chinese car companies are able to. Consumers who like variety, therefore, are more drawn to purchase a different kind of car than the average Chines domestic model that is available.

Exports of Chinese cars to foreign markets are down this year although car manufacturers hope they will increase as the year continues. As the domestic market is hit by more Chinese car regulations the export market is essential to the Chinese automobile manufacturing industry. Some cities in China have continued to regulate the sales of cars, when they can be driven, and what kind of cars can be bought due to the increasing amount of pollution affecting major cities in China. This puts a damper on the exuberant nature of the Chinese automobile consumer.
The 2014 automobile year looks as though it will bring some beneficial changes to the domestic Chinese automobile market.

Australian automobile industry and the ever growing EV, around the Globe.

The Australian automobile manufacturing industry is coming to an end by the year 2017 as its last manufacturer, Toyota, announced its withdrawal from the country. The Australian automobile manufacturing market has struggled during its 50 year history to bring profits to companies who decide to build their cars in Australia.

                Toyota Australia is following in the footsteps ofFord and General Motor Holden, both automobile giants who were unable to continue making their cars in Australia and pulled out of the manufacturing market there during the last year. Toyota�s Australian branch CEO and President MaxYasuda stated that many factors went into their decision to pull out of the Australian market, most of which were related to the company�s inability to turn a profit on the manufacturing side of the Australian operations. Approximately 2,500 employees of Toyota Australia are likely going to lose their jobs and, after review, may be followed by corporate and higher up positions once the dust has settled and inquiries into Toyota Australia�s business practices can be conducted.

                CEO Yasuda also mentioned other factors that prompted Toyota�s exit from Australia including the unfavorable Australian dollar and exchange rates, high costs of manufacturing their cars in Australia and a lack of business flexibility to maximize profits.

                Internal discussion of the automobile manufacturing industry in Australia reveals a hard political commentary as well as worry over lost jobs and a potential economic downturn as consequences of the exodus of Toyota Australia, Ford, and General Motor Holden. The National Australian Manufacturing Workers Union (AMWU) national secretary, Paul Bastian, blamed the government�s lack of interest in supporting local Australian workers and promoting increased investments for the automobile industry for Toyota�s leaving. Vehicle secretary Dave Smith said that the absence of Toyota Australia would impact industries from shipping, transport, sales and more; he mentioned the potential (and likely) recession that could hit the parts of Australia who were most invested and dependent on the automobile manufacturing industry.

                The manufacturing industry in Australia began in 1948 with the Chifley Holden. During the Tony Abbott government subsidies, handouts, and tariff protections that were common in the beginning decades of the Australian automobile manufacturing industry were cut off, making it difficult for companies like Toyota to justify doing business in a country where they were continually operating at a loss. Not only has Australia failed to maintain the business of the companies operating in it but also had no success growing its clean energy car sector or attracting new manufacturers to its shores.

                There is, however, still time and opportunity for the Australian automobile manufacturing industry to regain some of its lost momentum; Toyota, Ford, and General Motor will have officially shut their doors in 2017, leaving 3 years in the meantime for other car manufacturers to leap on an empty market. This market already has a trained workforce as well as manufacturing facilities, knocking down up-front costs of creating a manufacturing industry from scratch.

                Australia has the means and hopefully can find the motivation to save its challenging automobile manufacturing industry. 

Green, Auto Hybrid demand increase production, 2017 !

While China�s production of domestic and international automobiles may not be excessive they continue to be a major world automobile market influencer. In their extensive research and development of cleaner and more efficient vehicles China has surpassed many of the world�s automobile manufacturing giants. In 2011 China produced only 12,552 electric vehicle units as opposed to one year later, in 2012, when they produced 11,241 units of solely electric vehicles which raised their total output of electric vehicle production 98.8% from the previous year. Units of production have not gone up but the increase of electrical units shows the strength of the market and the great Chinese commitment to cleaner and more efficient energy driving towards the future.

                In 2012 Chinese auto manufacturers only produced 1,311 units of hybrid cars as compared with the estimated 273,150 units that are hoped to be produced by 2017. China�s commitment to investing in clean and green car technology is represented by the draft of a new plan to renew the Chinese auto market by pumping it full of hybrid plug-in vehicle options and 100% purely electric cars in coming years. The Chinese are investing in three core tenants of the plan that include improving research and development (and implementation) of the battery power in new vehicles as well as enhancing the motor and electric controls of the vehicles they will be producing.

                To encourage consumers and automobile buyers to take advantage of the pure electric and hybrid technologies that will rock their automobile market, China is offering discounts, tax cuts and subsidies for vehicles that are labeled �transitional technology,� which includes their totally-electric automobile models but not the plug-in hybrid types. China sees that their automobile market is more than just the incredible technology behind their cars, and that the consumers who will be potential car buyers need to have more benefits to owning an electric car in China�s petrol-centered environment.

                Recent reports from the Chinese automobile industry as well as the hopes of the Chinese state projects great increases and profits from the electric car market in the coming years. By 2015 estimates are up to one million electric units sold which will increase to 5 million units sold by the year 2020, the market speculates. From the initial sale of these new electric cars as well as a push from the government to promote the benefits and cost analysis of buying one of these vehicles, the Chinese are confident that total passenger car sales could be around 50% electric vehicles in the future. The estimated profits are in the millions of dollars.

                Not only is China finding a way to power through the rocky automobile market but they are doing so with a streamlined and efficient plan encompassing technological research, market analysis, and benefits to the population. Amsia Motors is one such Chinese company that is paving the way to green automobile technology through extensive research into green technology, market awareness and finally the production of professional, great-quality vehicles for the electric auto market in China. 

Green Automobile review - Detroit Auto show, 2014 !

This year�s Detroit Auto Show did not have much to display in terms of green and eco-friendly vehicles. There were a few green-inspired ideas and designs but no real physical representation of any of the automobile companies �going green.�

                The typical new automobile fare was presented: Ford released their 2015 F-150 pickup truck and the 2015 Ford Mustang, both designed to be familiar to buyers and building upon their predecessor�s popularity in the United States� automobile market. It is thought that Chrysler-Fiatwill also unveil a few new vehicles for the 2015 car season, but none have been named as of yet. Other automobile manufacturers displayed a variety of luxury cars as well as sports cars and higher-performing vehicles, each designed for a specific niche in the consumer repertoire of the automobile market.

All of these cars, while not necessarily going green full throttle, do generally conform to a higher fuel-efficiency rating because of new corporate average fuel economy (CAFE) rules. These regulations are in place until the year 2025 and basically insure that new car models attain better fuel efficiency than older cars.

It is common that a few European car manufacturers (like Audi, Volkswagen and Volvo) will reveal cars with electric plug-in capabilities; essentially versions of their other cars and not a complete redesign creating something completely green and eco-friendly. Currently the Volkswagen Bluemotion is the most economical diesel vehicle in Europe and its new 2015 concept design merges the fuel economy of a Passatwith the layout and engine of a Jetta Hybrid.

One of the few surprise releases in Detroit was Honda�s reveal of the 2015 Honda Fit which will be sold in the U.S. It is already being sold in Japan along with a hybrid version of the Fit which Honda is not planning on selling in the United States (the Fit goes under the name Vezelin Japan). The Honda Fit is similar to the Ford Fiesta, the Kia Rio, the Nissan Versa, the Chevrolet Sonic and the Toyota Yaris. The 2015 version of the Honda Fit comes in a four-door sedan model as well as a subcompact crossover automobile.

Also in the crossover category resides a Fit-inspired vehicle that was shown at last year�s Tokyo Motor Show which may make its way to the U.S. in design, but not in name. This small crossover will be in a similar category as the MINI Cooper Countryman, the Nissan Juke, and a smaller car from Jeep that all feature four-wheel drive capabilities.

Tesla, far from unveiling any real clues as to what 2015 holds for them, is expected to begin production on their Model X automobile which has been eagerly awaited by enthusiasts around the world. The Model X is supposed to be a crossover utility vehicle equipped with four-wheel drive and falcon wing style doors.

While nothing surprising was debuted at the 2014 Detroit Auto Show, small changes in how each automobile manufacturer is designing and making their cars more efficient, points to a greener future in transportation.

Strong Automotive market, 2014 !

The Chinese automobile market is the biggest in the world. Throughout the years it has grown into a giant, evolving to fit the needs of the country and its population.

                In 2013 the Chinese auto market recovered from a slight recession and increased its profits through the assistance of economic stimulus packages aimed at the auto industry and an increased demand for cars in China�s interior. Experts agree that China�s auto market will likely remain stable through 2014, building off of the momentum they gained in the last year. In 2013 China�s sales rates were once again in the double digits as they were for the majority of the last decade before the recession.

                At the Detroit Auto Show this year car manufacturers from around the world were glad to hear of the success of the Chinese market; the European and American markets have been slow growing in recent years due to a variety of ills including economic recession, unemployment rates, and more. The Chinese automobile market is receiving much interest from the world and should also see an increase in investments pouring into the automobile industry from some of the major global car manufacturers.

Car companies including Mercedes-Benz(under the Daimler AG�s Greater China operating branch) predict double-digit growth in the Chinese market again this year. Volkswagenhas high hopes for the country as well, putting its estimate between 5-7% growth over the next 5 years. Automotive consulting firms weighed in and put their numbers between 9-11% potential growth. General Motors and Fordwill likely continue to be popular amongst the Chinese and will profit from the expansion of the market.

                China is doing all it can to promote a strong automotive industry- more stimulus packages will be aimed towards the sector and the rise of personal income in much of China will also hasten the market rise. Sales caps that remain in cities like Shanghai and Beijing to curb air pollution should be able to be made up for by the increase in demand for cars in the more rural areas of China.

                The one automobile market that may not benefit from China�s success is Japan, whose Nissan, Toyota, and Honda brands do not sell well in China due to political tensions between the two nations. Japan�s automobile industry took a hit along with the rest of the world and has recovered from that downturn; they optimistically expect growth in China despite the lack of sales and rising tensions. The Japanese are planning to release a few redesigned and upgraded cars from its automobile manufacturers. Nissan will use its strategic partnership with Dongfeng Motor Corporation (a Chinese company) and look for niche markets within China to market its products. Honda and Toyota have also made efforts to cater to entry-level buyers as well as established automobile owners with new and redesigned cars that may do well in the coming year.

                The Chinese automobile industry is strong; it is increasing in size, demand, sales, and the interest that is being generated throughout the world and the automotive community is unprecedented. The future looks good for the automotive market in China.