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What is the biggest challenge facing the Automotive Industry today?
I am looking to identify the largest challenges in Automobile Manufacturing.
With the increasing price of gas the car industry must be one of those that is the most challenging to workplace in today. What demands are customers making today when purchasing or leasing any new vehicle?
I am looking for a true insight from those in the auto industry, but do welcome comments from others who are generally interested in this topic.
With the increasing price of gas the car industry must be one of those that is the most challenging to workplace in today. What demands are customers making today when purchasing or leasing any new vehicle?
I am looking for a true insight from those in the auto industry, but do welcome comments from others who are generally interested in this topic.
Replies to This Discussion
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Permalink Reply by Engineer on -
Well, you're talking to an old established industry.
It's tough to displace an entire industry. Reacting to chnage is hard and not in most corporate cultures. Definitely NOT in Detroit's. And really, a lot of resistance in Japan.
Chances are good the the next big thing in transportation or "auto" motive industry will be a small, unheard of startup, who produces a game changer.
Most likely the change will come from some company able to produce a truly innovative storage or delivery method for electrical charges to a lightweight, composite vehicle. New Battery? Inductive coil ? Magnets? Microwave Power?
Just about all of it is on the table. The way the industry survives is by purchasing this technology, if they can recognize it fast enough.
Still unsure about why it won't come form any of the majors? Ask this? What is it about the VOLT that takes so long to get to market? How is it that this kind of car was not on anyone's radar in Detroit? Consumer's have been clamoring for this for a while. Japan's been selling theirs for 3 years...
You really want to help facilitate change in the industry? Get them together in a room and make them listen to Steve Jobs about product design and leading the consumer "to water, and making them drink" the koolaid!
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Permalink Reply by Ken Doenges on -
The primary challenge within the automotive industry is that each company copies the others. Example:
1. Why do the auto companies produce a 3000 lb vehicle that sells for more than $15,000, to permit, one person, to travel, back and forth to work, an average of less than 60 miles a day?
2. Such a situation is obviously not very intelligent. Consequently, we must improve intelligence within the marketing departments of auto companies.
3. Engineers and manufacturing personnel can produce vehicles that weigh less than 800 lbs, sell for less than $3,000.00 and get 100 miles per gallon.
4. So why don't we do it? Because our economy needs more money to support a system that is inefficient because waste creates profit, wages and taxes.
5. So, nothing is going to change because if it does, it will damage the economy.
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Permalink Reply by Margret Durbin on -
I'm not so sure the greatest challenge in auto manufacturing is so different from the greatest challenges in any manufacturing organization. It seems that the first department or value that is underfunded or eliminated is quality. Companies today are focused on the immediate bottom line - looking good on paper to their board or investors and wall street. So how do you improve your bottom line quickly? Reduce costs. Quality issues take time to surface and impact the bottom line, in the meantime labor and materials have been outsourced overseas. By the time the quality issues start to affect the bottom line management doesn't want to acknowledge the source of the problems or thinks they are to costly to address.
Why do consumers buy Japanese despite the higher cost? Quality, reliability, and responsiveness to consumer demands. The consumers that buy foreign products look at the total cost of ownership and realize that spending more up front can often mean spending less in the long run. If only manufacturers could get that they might not be suffering so much now. We are just getting to the point of maturity that the shortcuts of the past are starting to cost us dearly.
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Permalink Reply by Sai Yeditha on
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Hello Frank,
I think more than the gas price factor in this highly competetive automotive market, the companies are worried and spending most of their resources to release vehicles which adhere to the current critical emission regulations.
Most of the top notch automotive companies I have seen are equipped with the machinery and production facilities (which go way back) which may not be capable of achieving the targets to produce such a quality product hence there has to be a re-structuring. Everything comes at a cost!
Modifying some of the equipment is an option but in a continuous production environment it is not practicable. Thus companies have to wait for their summer or Christmas shut downs to carry out any equipment work.
Purchasing new equipment is another option but it depends on the flexibility to expand the company layout.
Thus it makes companies consider investing within the company or outsourcing the components from external suppliers. Do we have enough suppliers who can deliver a quality product? or do we consider international suppliers? (this is an entirely different discussion).
I think there needs to be a cut off point to the emission regulations. Also, the EU5 emission regulations are coming into effect soon, but talk is that EU6 will be released shortly afterwards.
Thats just what I think.
Please let me know your thoughts...
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