TPT November 2013

Global Marketplace

auto parts suppliers have been preparing themselves. Those who have not invested significantly in plant and personnel know they are in danger of losing business to a competitor, Mr DeKoker said. Fortunately, the automakers well understand the importance of their suppliers to the common enterprise. General Motors has put 200 quality engineers in the field to help mitigate stress on the supply chain. Ford, too, has some 200 engineers working to prevent bottlenecks and quality issues. Bill Krueger, who oversees purchasing and manufacturing for Nissan Americas, summed up for the producers: “We need suppliers to cooperate to maximise production opportunity.” › Mr Tetreault, of Ford, said he meets twice a week with suppliers and purchasing executives about any strains in the system. If there is a shortage of radios, or some other component, sometimes Ford will adjust the mix of vehicles and equipment packages. “It’s something we do really well,” Mr Tetreault told the Free Press . “We are all world-class scramblers.” Birgit Behrendt, who heads Ford purchasing for North and South America, said the automaker is also rolling out the next phase of a programme aimed at bringing 104 select suppliers into vehicle development sooner. Elsewhere in automotive . . . › Honda Motor Co, which already had invested nearly $2.7bn in its North American operations over the previous

three years, on 8 August said that it will spend $215mn more in Ohio. About $180mn will go to expand work on aluminium die casting and parts production at the company’s engine plant in Anna. In addition to a training centre for Anna, Honda plans a $35mn training centre for workers and engineers at its Marysville auto assembly plant. Honda says that the building will also house a heritage centre to document the Japanese company’s history in North America. › Despite high hopes for electric cars, results so far have fallen well short of the million of them President Barack Obama predicted would be on American roads by the middle of this decade. According to the auto research site Edmunds. com, only about 36,000 battery-powered vehicles were sold in the US this year through July, many of them at a heavy discount from the sticker price. In marked contrast, automakers sold some 298,000 hybrids over the same period, and the cars which run alternately on gasoline and battery power may confidently be said to have entered the mainstream of the American market. With more than 40 conventional hybrids available, these models account for about 3 per cent of overall industry sales, and market leader Toyota Prius is one of the top ten best-selling passenger cars. Reasons for the popularity of hybrids seem evident. They cost less than most electric models and, unlike battery-powered cars, they impose no limitations on driving range. Moreover hybrid technology, having been tested over time in real-world driving conditions, is no longer dauntingly mysterious to American car buyers. Dorothy Fabian, Features Editor (USA)

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November 2013