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Some auto execs say expensive gas might be a good thing

Picture the following scenario: as soaring gas prices force consumers to tighten their belts even further, dealer lots begin piling up with unwanted gas guzzlers, and the large SUVs that were once such cash cows become so unpopular that used models lose all value. Clearly automakers would view this as bad news, right? Well apparently not — in a surprise response to proposals that the federal gas tax be suspended to help consumers, several auto executives including Chrysler big wigs Bob Nardelli and Jim Press argued that prices at the pump should stay high.

It may seem confusing that members of the company currently trying to sell 300s, Challengers, and Grand Cherokees wouldn’t be in favor of cheap gas, but the reasoning is simple: if the new interim CAFE fuel-economy standards proposed this past Earth Day go into effect, automakers will be forced to build smaller, more efficient vehicles. But if gas is cheap, consumers won’t have much incentive to buy them. Mike Jackson, CEO of Auto Nation, agrees, saying “I’ve never heard of a plan that says ‘I want you to use less of something but I’m going to reduce the price.’”

Chrysler CEO Nardelli has said he empathizes with drivers struggling to fill their tanks, and suggested the government create incentives encouraging consumers to buy fuel-efficient cars made in the U.S. Federal tax credits currently exist for hybrid cars, while equally efficient cars with traditional powertrains don’t get any break from the IRS.

Though GM and Ford haven’t commented on the current situation, in the past both Bill Ford and Bob Lutz have said that raising gas taxes made more sense than increasing fuel-economy standards, because forcing automakers to build small cars will have little effect if the public isn’t interested. Meanwhile, with gas prices continuing to rise, in March small car sales rose by 3.4 percent, and sales of subcompacts getting over 30 mpg increased by a whopping 32 percent.

With CAFE rules forcing automakers to build more efficient cars (though some more than others), lowering gas prices back to the levels that made Hummers and Escalades so popular would seem to make little sense. Maybe a system like Europe’s, where heavily-taxed gas means that small economy cars rule the road, would work here. Of course if gas on the continent were cheaper, that wouldn’t necessarily mean drivers would suddenly ditch their Fiat 500s for Camaros and Mustangs (or E55 AMGs, for that matter).

Nardelli, Jackson, and the other auto executives may be right: keeping gas expensive could be the only way to truly move America away from its dependency on foreign oil. Then again, if prices dropped by 50 cents tomorrow, here’s guessing that not many drivers would be too upset about it.

Source: The Detroit Free Press

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The laggest Auto Exhibition in china 2008

Auto China 2008 also known as the 10th Beijing International Automotive Exhibition will be held during April 22-28 at  New China International Exhibition Center of Shunyi distinct of beijing,.

With the theme of “Dream, Harmony and New Vision”, the auto event is jointly organized by China Machinery Industry Federation (MIF), China National Machinery Industry Corporation (SINOMACH), China Council for the Promotion of International Trade (CCPIT), China Association of Automobile Manufacturers (CAAM), and co-organized by CCPIT Automotive Sub-council, China National Automotive Industry International Cooperation, China International Exhibition Center Group Corporation and Society of Automotive Engineers of China.

According to Wang Xia, secretary general of Auto China 2008 Organizing Committee Secretariat, Auto China has become one of the most famous auto exhibition brands all over the world since the first auto show was held in 1990. The bi-annual auto event has been listed one of the international A-class auto shows together with Frankfurt, Geneva , Paris , Tokyo and Detroit shows.

In 2007, the number of auto output and sales in China reached 8.8 million units and the numbers are expected to exceed 10 million this year. China is expected to become the second largest auto manufacturing country and second largest auto market in the world. The rocketing growth of the Chinese auto market has aroused attentions from multinational auto giants, who injected great enthusiasm and investment into the participation of Auto China 2008.

•  Characteristics

•  Large scale

With a total exhibition space of 106,000 square meters of indoor space in eight halls and an additional 80,000 square meters (60,000 for suppliers and 20,000 for commercial vehicles) of outdoor space, Auto China 2008 stands to become Asia’s and China’s largest automotive exhibition, featuring a total of 2,100 exhibitors (1,800 from home and 225 from abroad) from 18 countries and regions and seven world premiers. For the first time, the show displays PV, CV, auto parts and aftermarket products in a single exhibition.

•  World-class exhibition facilities

Located in Beijing Shunyi Tianzhu Airport Industrial Zone, the New China International Exhibition Center includes eight modernized exhibition halls, each occupying 12,500 square meters.

The new exhibition center alleviated the problem of insufficient display areas and laid solid foundation for Auto China to become a world-class trade event.

3. Active participation

For passenger vehicles, nearly all the domestic and foreign PV brands are scheduled to participate in Auto China 2008. There will not only be Asian and Chinese debuts, but also world premieres and concepts. Auto China 2008 has made a record in terms of the number and types of vehicles to be displayed.

4. Exhibitor

Treating Auto China 2008 as one of the international A-level trade events, nearly all of the multinational automakers registered to attend the show; leading automakers such as Volkswagen AG, Daimler AG, and Toyota all considered Auto China 2008 as the most important event outside their respective home countries.

A lot of major state-owned groups, including FAW, Dongfeng, SAIC, Chang’an, BAIC, GAIC and China Aviation Industry Corp. II and China North Industries Group Corp., will attend the expo with their full line-ups. All the independent carmakers and commercial vehicle companies will display their models here.

5. Luxury auto brands

Global super-luxury brands will showcase products in the E4 area, including Bentley, Lamborghini, Bugatti, Ferrari, Maserati , Aston Martin, Porsche, Rolls Royce, Spyker and refitted luxury vehicles.

6. Visitors

Presidents and CEOs of Volkswagen, Audi, General Motors, Toyota , Renault Nissan, Mercedes-Benz and other multinational auto companies will attend and deliver speeches.

It is expected that over 600,000 people would visit the exhibition, including 30,000 foreigners. More than 8,000 journalists and 1,000 media personnel will come and report, including 100 from foreign media.

 Schedule

Dates:

Whole vehicles: April 22 - 28, spare parts: April 22 -25.

Press days: April 20-21, exhibitors and media staff with ID cards only.

Industry days: April 22-23

Public days: April 24-28

Time:

April 22-25: 9:00-17:00, April 26-27: 9:00-19:00, April 28: 9:00-17:00

Community and charity performance: 7:00-22:00, April 20

Opening ceremony: 10:00, April 22, South entry hall

article source—http://auto-part-manufacturer.net “we are the best China auto part Manufacturer and auto part suppliers

German auto parts manufacturers value the Chinese market

2008 Beijing International Auto Show in representative parts Pavilion - W7 Museum, to Bosch, mainland China, Mahler, Schaeffler, ZF, ThyssenKrupp, Bayer, led by Germany and other parts Pavilion , W7 Museum occupied an area of 2,300 square meters, as the entire international components of the largest exhibition hall in groups.

This is the German Automobile Industry Federation (VDA) in Frankfurt organized by the IAA International Auto Show, the German supplier scale exhibition of the most intensive field.

April 21, led the German mission to Beijing to combat the German Automobile Industry Federation of exhibitors (VDA) at the Pavilion W7 VDA specialized regional met with Chinese reporters. “In China, the German brand cars far exceeds the rate of expansion of the market’s own development. 08 the first three months of the German automobile brand sales increased 36 percent, while the total size of the market growth of 22 percent, almost every five Chinese new registration Out of the car for a German brand. “German Automobile Industry Federation (VDA) Chairman) Ti Yasi» Mr. Wei Siman not without proudly, “said German suppliers successful use of the Chinese market the opportunities provided by the China as a production site ‘of course’ choice. ”

Ayodhya Siwei Rothman, the German car production in China at present has about 25, the German auto industry in China has more than 140 assembly plants and production permit access to the factory, after the United States, China and France Germany’s third-largest auto industry in overseas production sites. Since 1996, the German supplier of the six times the number of actual growth. Since 2007, China has been Germany’s most important overseas market, in Germany in 2007, China sold 967,000 vehicles, more than in the United States 948,000 level.

German car manufacturers on the reasons for China’s favor, Ayodhya Siwei Rothman said, “Of course this does not relate to low production costs, and also on the market potential and the most important quality factors.” He stressed, “VDA has China Automobile Industry Association conducted a number of cooperation in the past two years, VDA in Beijing has established a Quality Management Centre, which is a commitment to the suppliers to provide products in the audit, training and professional development courses professional platform. ”

At the same time, Ayodhya Siwei Rothman said, “We strongly support China as a high-performance, low-emission power-train technology to establish the market, which includes clean diesel, which is a huge potential in China have the technology, and the German company Precisely in this area has the world’s leading technology. “

How car company facing the rasing of Raw material

The growing automobile sector to two extremes - platform for expansion and contraction platform. Insight here that contraction platform is the trend of globalization, and that the platform is to reduce the steel, oil, labor costs rose the most direct killer of reach, at the same time guarantee the quality of the car.

With the production platform, means that many parts of the same, more reliable technology, such as matching suppliers system to the merger, mature supporting system can guarantee that the quality of cars. At present, the production platform with different brands of enterprises in China are not many.

Ford Motor Company is a typical platform to reduce integration. At the same time as Ford has Ford, Mazda, Volvo and other brands, as a platform to create the conditions for integration. At present, more than three of its brands have successfully integrated platform. Another more prominent platform strategy is public, not in the platform produced a lot of competitive models.

Car industry, not only saving a platform to reduce the cost structures platform, supporting system integration and scale, is a good way to reduce costs. At present, steel, oil, labor costs are rising rapidly. The price rise is difficult. The future, the space vehicle prices, reduced platform is brought about by the benefits.

On the contrary, the international brand platform at the same time significantly reducing the domestic automobile enterprises have autonomy in the expansion of the platform. Some enterprises that create dynamic, several major platform models across several levels and includes many categories. Automotive experts have expressed concern about, worried about the blind expansion platform for enterprises to bring the waste.