Logistics must adapt to auto industry changes
According to a new report by Transport Intelligence (TI) titled Global Automotive Logistics 2009, the next year will be critical for logistics companies to come to terms with the systemic restructuring which the industry is undergoing. The report highlights the state of the US market, in which General Motors and Chrysler have been bankrupted and […]
August 1, 2009
The report highlights the state of the US market, in which General Motors and Chrysler have been bankrupted and FordÃ¢â‚¬™s production capacity severely compromised. In contrast, Hyundai, Volkswagen and Daimler are opening new plants and Toyota, Nissan and Honda are likely to expand production at existing facilities. Ã¢â‚¬Å“This will mean that whilst traditional car making regions such as Detroit undergo savage rationalisation new ones, such as in the southern states of America, will boom,Ã¢â‚¬Â according to the report.
Ã¢â‚¬Å“In Europe, the market is still very fragmented although there are no signs that there will be consolidation any time soon. However the German power house producers in particular will have to migrate from their existing locations in Western Europe to lower cost production locations in the east of the region.Ã¢â‚¬Â
Looking beyond ChinaÃ¢â‚¬™s inevitable rise to becoming one of the worldÃ¢â‚¬™s dominant car markets, there is also a huge degree of excitement about other developing countries, the reportÃ¢â‚¬™s authors note adding that India is growing fast, and as a consumer market, has enormous potential. Thailand will become an important production location, as will South Africa, due to the fragmenting nature of the worldÃ¢â‚¬™s production footprint, it added.