New Smart Park System Underscores Toyota's Relentless Push to Be No.1 (Auto parts)

New Smart Park System Underscores Toyota's Relentless Push to Be No.1
New Smart Park System Underscores Toyota's Relentless Push to Be No.1

Gaydon
It were a bit hectic yesterday and I could have done without an overturned truck blocking the M40 exit slipway at the Gaydon junction. Meeting was worth going to, if a bit predictable. It seems that PRs have trouble understanding all the websites out there (understandable) and the implication is that online publishers need to make greater efforts to explain themselves. It's all about developing relationships etc. Cliches, but true. Meet up with people, explain who you are and what your publication is all about, who reads it and why, and you can usually make progress - or at least understand where people are coming from. If the folks at some car companies still take the attitude that they only deal with newspapers, mags or TV and websites can just take a hike, well, more fool them. Thankfully, such blinkered views are much rarer now than five years ago. Anyway, distinctions between print media and online are blurring rapidly in both business and consumer areas. Most print publications have an online presence - newspapers for example and they are increasingly very good in their own right (eg FT.com - can't remember the last time I actually purchased a hardcopy of the pink 'un). I noticed recently that CAR magazine has just taken itself online (at long last - click here) and that its online version will not simply be an online mirror of the print pub. Good to see more people are 'getting it'. I did do a quick tour of the museum once again. Good of Ford to host what is basically a tribute to British Leyland. If you get the chance and think you would enjoy looking at prototypes and concepts that never made it into production (like an estate version of the Rover SD1 - sort of cool in a 'we're automotive Millwall, no-one likes us and we don't care' kind of way) of interest, I suggest you enjoy Gaydon and its quiet dignity (you won't exactly get knocked over in the crowds) while you can.

2006 Big Year for Small Cars in USA
2006 Big Year for Small Cars in USA

Auto Price Cuts On the Way
Auto Price Cuts On the Way

Match-making
I've been mulling some of the current consolidation issues with colleagues today and a number of points, questions have been raised that I will share here. 1. GM and Ford in alliance/mergerThat certain conversations have happened isn't too surprising. If everything else is apparently in the pot as a possibility why not this one? Only thing is, these two American corporations are so head-to-head there would have to be massive rationalisation. This scenario would surely have to be a last throw of the dice when both makers are staring down the barrel of a gun at Chapter 11 and it is seen as the best/only way to keep a viable all-American full-line manufacturer - able to punch its weight globally - going. Like the occasionally vaunted coming together of Renault and PSA - it would be a tough pill to swallow. But don't rule it out if things in Detroit get worse rather than better. For now, the focus is on the respective turnaround plans. 2. AB Volvo - looking on impassively?There are two firms potentially in play that might have got some attention over in Gothenburg at AB Volvo, home of Volvo Truck. Volvo once planned merger with Scania that was overuled as anti-competitive by the EU Commission. Does it just sit on the sidelines as the next round of commercial vehicles industrial consolidation involving Scania takes place? I wonder if the legal department at AB Volvo has been dusting down those Scania/EU Commission files for further consideration? The other firm of interest to AB Volvo is Volvo Cars, which it divested to Ford in 1998. Ford has been a largely good home and the unit has been very successful in maintaining its independence and positive Volvo brand values. It is something for Swedes to feel quietly satisfied about and even, maybe, proud of (a more positive experience than GM's custody of Saab, anyway). Volvo Cars is still very Swedish and has been largely left alone by Ford while it turned a profit. So, how would AB Volvo's shareholders feel about Volvo Cars going to a new owner, especially if there was a suspicion that the new owner is after quick bucks and doesn't care much for the Volvo brand? Could Volvo Cars find itself 'going home' - AB Volvo perhaps taking a majority shareholding, Ford keeping a sizeable stake? AB Volvo recently said it was condidering acquisitions in order to raise profits (see here). 3. Need for Ford to be wary of bogus interest in PAG brands It's kind of obvious and I'm sure there are people at Ford wise to this sort of thing, but some vehicle manufacturers might like nothing more than to send a small army of accountants and engineers into parts of PAG under the guise of due diligence, or 'preliminary investigations prior to makiing a formal bid'. I'll name no names.

UK plc s strength in depth
I learnt quite a bit the other day at the niche vehicles conference that I spoke at. There were some fascinating insights into low volume production issues at places like Aston Martin, Stadco and, of course, Lotus manufacturing issues, different approaches to vehicle engineering, chassis design, material use, costs, body structures and so on. I don t get exposed to that sort of sharp-end stuff very often, so the detail was pretty new to me. It was worth sticking around for and at least raises my level of understanding about what goes on under the skin with such vehicles. The presenters seemed pretty open and sharing, which created a good atmosphere. At this level it s kind of like a club of mates these engineers have moved around, worked with each other before (alongside in same company or as supplier and customer on projects), studied together and served apprenticeships together. And strength in depth in highly skilled engineering is at the heart of Britain s still strong proposition as an auto industry hub. There may not be an indigenous mass-market volume carmaker in Britain any more, but there is a strong engineering base that supports high value-added activity niche volume manufacturing, design engineering companies, motorsport engineering companies. It was something to reflect on. A journalist from France was in attendance and interested in talking about low volume vehicle manufacturing operations in Britain for an article he s writing. A profile of the French auto industry compared to the British one would certainly make for an interesting project. I think the cultural differences would come through big time. At the end of the day there was a tour of the Lotus factory and that was really something (unfortunately, cameras not allowed anywhere at Lotus; below pics were taken outside Hethel Engineering Centre where the conference took place, which is not part of Lotus Group). I ve been around plenty of big assembly plants in my time, but to see a low volume operation up close was fascinating (eg chassis on trolleys that are manually moved around). I learnt a bit about aluminium extrusions and the bonding that is behind the Elise chassis, among other things. Saw a few finished Europas. Looks okay, but I d have an Elise for a bit of fun, myself. Something a little compromised and a bit more refined for those who want that makes business sense I'm sure, but I prefer the concept of the two-car solution that involves something sensible Monday-Friday and the Elise for the weekend. I just need to get saving. Something else to reflect on was the man from Gibbs Technologies and his car-boat hybrid, the amphibian (amphibious?) Aquada. That s niche alright. On one level, it seems daft to wrestle with the engineering conflicts involved in making a leisure vehicle that will do land and water. On another, it s hats off to them for trying. You can t knock anyone for trying and I found myself hoping that they get enough sales to at least justify the enormous investment. If global water levels really do rise, maybe its time will come!