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Planemaker joins forces with auto-industry supplier Adient

By Julie Johnsson / Bloomberg

Fed up with delays that have plagued production of luxurious jetliner cabins, Boeing Co. is forming its own company with a major seat supplier to the auto industry.

The joint venture with Adient Plc will be based near Frankfurt, Germany, along with a technology center and an initial production plant, the companies said in a statement Tuesday. It will market seats to airlines and leasing companies that are ordering new planes and retrofitting older ones.

The strategy furthers Boeing’s foray into so-called vertical integration as Chief Executive Officer Dennis Muilenburg seeks to bring more work back in-house. That’s a reversal of the global outsourcing that dominated strategy at the Chicago-based planemaker a decade ago, when the company was building the first 787 Dreamliner.

Boeing said the Adient Aerospace venture was prompted by seat production foul-ups and a capacity crunch that have delayed jet deliveries and frustrated airlines. United Continental Holding Inc.’s premium Polaris seats were slow to make their debut on the Boeing 777-300ER last year when Zodiac Aerospace fell behind schedule.

“Seats have been a persistent challenge for our customers, the industry and Boeing, and we are taking action to help address constraints in the market,” Kevin Schemm, a Boeing senior vice president of supply chain management, finance and business operations, said in the statement.

Boeing, the biggest gainer last year and so far this year on the Dow Jones Industrial Average, fell less than 1 percent to $333.76 after the close of regular trading in New York. Adient tumbled 5.1 percent to $78 after the company said in a regulatory filing that first-quarter results would be hurt by hurdles in its seat structures and mechanisms business.

Possible Tension

The move risks adding tension to the sometimes fraught relationships between Boeing and some of its largest suppliers. Safran SA, which makes engines for Boeing’s 737 Max through a joint venture with General Electric Co., is taking over Zodiac.

Rockwell Collins Inc., a long-time supplier of radio and flight displays to Boeing, last year bought B/E Aerospace Inc., the largest cabin-equipment supplier. United Technologies Corp. later struck a deal to acquire Rockwell, a deal aimed at gaining bargaining clout with Boeing and rival Airbus SE.

Adient, a titan in the $70 billion automotive-seating business, has been hinting at a closer relationship with Boeing since the companies announced a collaboration last March. Boeing Vice Chairman Ray Conner, a former chief of its commercial airplane division, is on Adient’s board. The Plymouth, Michigan-based company was spun off from Johnson Controls International Plc in 2016.

Potential ‘Disruptor’

With 230 plants worldwide, Adient sees itself as a potential “disruptor” in the aircraft seating realm, Mark Oswald, vice president of investor relations, said at a conference in September. “The customers aren’t excited about the current supply base,” he said. When Adient was approached, a board member “was very influential” in spurring it to look at the opportunity, he said.

The two companies, in particular, are eyeing complex, lie-flat seats that can cost as much as a Ferrari. “The front-of-a-plane business, full-flat business class is kind of our initial entree,” Adient Chief Executive Officer Bruce McDonald said at a conference in August.

Adient is the majority owner of the venture with a 50.01 percent stake to Boeing’s 49.99 percent share. The company’s initial customer-service center will be in Seattle, where Boeing already has a hub catering to airlines shopping for cabin fittings. Spare parts for the seats will be sold through Boeing’s Aviall subsidiary.

By sourcing its own seats along with other aircraft components, Boeing gains greater control over quality, intellectual property and high-margin aftermarket sales — the main source of profit for aerospace suppliers. The company has expanded its reach into avionics, additive manufacturing, actuators and engine covers known as nacelles.

— With assistance by Craig Trudell


Article source: https://www.heraldnet.com/business/planemaker-joins-forces-with-auto-industry-supplier-adient/

Detroit and the Automotive Industry

Dr Don Cohen, Principal of Michigan Metrology LLC, talked about how Detroit has served the automotive industry over the last 70 years. His insight explains the evolution of Detroit from manufacturing powerhouse to technology powerhouse.

How did it all start, what made Detroit?

Why are we here in Detroit? Want to know why? Louis XIV, that’s where it all started in 1701. The king commissioned a guy called Cadillac from Montreal to come down the river and the Lakes and establish a fort on the Detroit River. You know what Louis XIV wanted more than anything in 1701? Fur! The beaver, that’s why we’re here – because they had totally destroyed the beaver population in Europe. So it all started in 1701 basically looking for fur. This is how Detroit got started. Detroit is French for ‘strait or narrows’ and I guess as it’s a narrow stretch between two lakes it’s a major crossing point for a lot of the waterways. From an industrial point of view, particularly where there were no trains and no planes and only boats, this is a great place to start a city because of transportation. It’s no surprise that we started as a transportation city for the fur trade, but then developed into the automotive transportation industry.

Tribology: Detroit and the Automotive Industry from AZoNetwork on Vimeo.

What drove the city into automobiles and industry?

We were fortunate enough to have people like Henry Ford who happened to be living here on farms and wanted to build cars. And also because of the lakes and the ability to get ore and other raw materials around and between the different suppliers. When you go through the history of Detroit, you realize that it all started with transportation and the river boats. The automobile really didn’t start until the early 1900s. Before cars this was known for wood. This was a huge lumbering area. The waterways allowed us to take all the trees from the Upper Peninsula and bring them down here. Really, the automotive industry is new here, but we’re tied to the automobile. The automobile is our bread and butter and as that economy comes and goes, that affects us greatly and we’re like a self-defeating entity. We’re trying to build cars that last forever, which probably isn’t a good thing if you’re trying to sell more cars.

The big auto companies – they all started here – then what happened? What happened to Detroit?

I’ve got a great expression for that, borrowed with apologies. In the country of the blind, the one-eyed man is king. To explain, here is what I think happened to Detroit: Detroit was a powerhouse. I mean, following 1945 there was only one manufacturing center in the world and that was Detroit, right here, in the United States. The city took off like crazy. The growth was phenomenal. The City of Detroit, I think at its peak, had over two million people living there. It was no big deal to grow up in a city neighborhood, and right down the street is where you worked. The city was a big factory and all the suppliers were all probably millionaires, making springs and clips and whatever it was that went into the car. That was just part of the life here. You never left more than a few square miles and you had all you needed. You had the whole world economy right there. Then, we took our eye off the ball. We lost sight of worldwide competition. As the world recovered after the War, by the ’60s and ’70s, Japan came on strong. Essentially, Japan made a better product at a lower cost and that’s how business works. The center of capitalism got a real dose of its own dogma. If you build a better product at a lower price, people are going to buy it and if you snooze you lose. Detroit lost its market share to the competition.

Who are the major competitors?

The American market is huge and we’ve got a lot of great technology here, but when it goes real high end it seems to be Europe. The whole concept of really high-end automotive engineering starts in Europe. When you go to mass production and incredible quality, high-volume, it’s Asia. Unfortunately, Detroit is right in the middle and that’s what happened in the ’60s and ’70s. If you wanted a real high-end car, it was the Mercedes. If you wanted a lower end cheap car, it was Toyota, and Detroit got squeezed. We thought we were invincible, but you build a better product at a lower price and you get a lesson.

How has Detroit managed to make a comeback?

Well, let me tell you what’s happened in Detroit in the last 20-years. I grew up here, I was born here. I left in the ’70s, came back in the ’90s. When I left, it was the worst of times. It was the mid to late ’70s. The Japanese were here, and there were all kinds of bad stuff going on in the streets. We were seeing the decline of Chrysler. But we didn’t realize that 20 or 30 years later we were going to see GM and Chrysler go bankrupt. We didn’t learn all that much. There’s a lot of political reasons and I won’t get into all that. But now Detroit has morphed into another world capital of automotive ─ but I wouldn’t want to say it’s strictly American. I think there was statistic out that the car in America, that’s built with most American parts, is actually a Toyota! It’s not an American car. Now, in Detroit you see the world tech centers for Toyota and Nissan. The area has changed because we are now a global center for automotive engineering. Sure, we still have the North American Automotive Market, which is like some 15 million cars a year, so who wouldn’t want to be here, right, whether you’re European or Asian! We have seen Detroit change from being just an American car company place to a worldwide car company place, and that’s where we are now. We had to respond and we can compete.

Would you say that’s because, other than those two big US companies, it’s all the supplier companies?

Well yes, to a degree. If you think about the infrastructure that’s here in terms of making a car. It’s amazing. The infrastructure is phenomenal since it’s been here for over 100 years. Whatever it is that you need to build a car, suppliers are literally right down the street from you. Also, your customers are right here as well. I mean, this is a big part of the country, the Midwest. This is a great place to be if you’re in the automotive industry. Why would you be anywhere else? That’s the main reason ─ the infrastructure is phenomenal. For example, are you familiar with Roush racing? It’s a big NASCAR racing team. Jack Roush lives in Detroit. He grew up here. He’s a math major from Eastern Michigan. He’s also a very successful entrepreneur and he’s into cars. Roush Industries does nothing but advance technology for the auto industry, and it’s all in this area of Lavonia ─ and NASCAR is one of his hobbies. I mean that’s kind of how it is, that’s Detroit. People don’t know about it. One of my friends says, “It’s just a very unsung place. There’s no Steve Jobs of Detroit,” but there’s thousands of people like Steve Jobs here. You just don’t know it.

How will Detroit manage in the future?

Transportation is really what Detroit’s driven by. Automobiles happen to be a key area and currently we’re getting more and more into other aspects of transportation. We have to constantly reinvent ourselves and create more value for our customers. As you see it now, the morphing that’s going on. We’re moving away from being a car city to a transportation city. Focusing on the concept of transportation, that’s why you see the various automobile companies getting involved in companies like Uber and Lyft and buying up these technology disrupters. Because we provide transportation we have to evolve, and I’m sure we will be building other modes of transportation as we progress. For example, you may not know the history of this, but the Ford Motor Company used to make airplanes in the early days. During World War II, most of the bombers were built not more than 20 miles from here, in Ypsilanti.

How do you fit into the new Detroit and has it changed you?

At Michigan Metrology, and at Bruker, we do a lot in transportation as the automobile in particular has all kinds of technology. And all that technology is driven by three things: styling, safety, and warranty or reliability, and that touches all kinds of material science. I spend my life measuring 3D surface texture. For the last 30 years I have been measuring an area one millimeter by one millimeter by about 100 microns to 500 microns tall. I’ve made a life out of that small volume of space because there’s so much that goes on in that space related to the automotive industry. Be it a piston ring interface, to the way your fingers feel on the steering wheel. All that relates to the surface finish. I remember when we never thought about gas mileage out here. Everything was power cars and muscle cars. We weren’t so sensitive to the cost of gas. But now there are two drivers, emissions and also miles per gallon. These things drive what we do and we start to be concerned about solder bores and surface finishing on an engine and the ring sliding up and down, the lubricants and related engine issues. This takes us to surface metrology and mechanical tester stuff─friction, wear, and lubrication. The thing is, I don’t think from what I’ve read these are what drives the buyer so much. The buyer still looks majorly at styling, safety, and warranty. The environmental considerations, they have by law, and they expect better mileage anyway, now that the price of gas has gone up. That’s kind of it.

Learn about the instruments in Don’s Lab

NPFLEX Optical Profiler

TriboLab Mechnical Tester

About Donald K. Cohen Ph.D

Dr. Cohen has an undergraduate degree in Physics from the University of Michigan – Dearborn and graduate degrees in Physics and Optical Sciences from the University of Arizona. Early in his career, Dr. Cohen worked with IBM on optical disk drive development. He later joined WYKO Corporation as Product Manger and finally Vice President, developing 3D surface texture metrology instrumentation. In 1994, Dr. Cohen established Michigan Metrology,LLC to help engineers and scientist solve problems related to “leaks, squeaks, friction, wear, appearance, adhesion and other issues”, using 3D Surface MicroTexture Measurement and Analysis.  

Disclaimer: The views expressed here are those of the interviewee and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.

Article source: https://www.azom.com/article.aspx?ArticleID=15060

Behind the glitz at Detroit Auto Show, challenges remain for auto industry

The 2018 North American International Auto Show opened with a succession of new vehicle model reveals. No expense has been spared as the auto industry targets a new-year buzz.

But the warning signs remain. CGTN’s Dan Williams has this report.

After seven years of growth, 2017 saw a near-two percent slide in U.S auto sales. Those inside the industry remain upbeat.

“People will say that 2017 was down, but it was down off an all-time record and it was down about two percent,” said Alan Batey, General Motors Executive Vice President. “So at some point it is going to plateau. We expect the year ahead to be very strong.”

That message was emphasized by U.S. Transportation Secretary Elaine Chao in a keynote address. She hopes the impact of just-enacted US tax cuts, which reduced the US corporate tax rate from 35 to 21 percent, will help the industry. Some analysts predict those reforms will also boost sales in the luxury car market.

There are potential roadblocks ahead for the auto industry. A possible tightening of access to credit, as well as the risk of higher Federal Reserve interest rates could drag down new car sales. And then there are the ongoing negotiations over a revamp in the North American Free Trade Agreement.

U.S. President Donald Trump has threatened to abandon the agreement and is calling for a greater percentage of car parts to be sourced in the U.S. and not from Mexico or Canada.

Joe Hinrichs, Ford President of Global Operations, is hoping these disputes can be settled.

“We do support the modernization of NAFTA. We have had conversations with the administration,” says Hinrichs. “We believe in free and fair trade. We believe that North America needs to be competitive globally and NAFTA is a big part of that. We are a part of those conversations, hopefully we see a resolution that will work for all three countries.”

Ray Tanguay, an automotive advisor to the Canadian Government, warns that if the U.S. untangles itself from NAFTA, both the industry and the consumer would suffer.

“Anybody who is going to try and interrupt that trade flow and put some barriers into that is just trying to hurt the industry period,” Tanguay said. “To put a tariff on it is increasing the cost. If you increase the cost, you increase the cost of the car, if you increase the cost of the car you going to reduce the demand.”

These are the cars that will fill showrooms across the globe. But whether the volume of sales moves in an upward curve, remains to be seen.

Article source: https://america.cgtn.com/2018/01/16/behind-the-glitz-at-detroit-auto-show-challenges-remain-for-auto-industry

Leadership: The auto industry’s missing ingredient

The automotive industry’s capacity for innovation and marketing are on full display this month. Between the Consumer Electronic Show and the North American International Auto Show, every day brings a new story about the rapid development of vehicle technology. The industry possesses the know-how and ability to deliver on the zero-emissions future if it wants to.

A Ford at an electric car charging station in Buffalo, NY. Photo by Fortunate4now

Behind the headlines of engineering feats and product plans, though, is a disturbing fact. The industry is undermining its own innovation. It’s doing this through a campaign to dramatically weaken the central tool we have to move cleaner technology into the fleet – protective greenhouse gas reduction and fuel efficiency standards for new cars and passenger trucks.

Well-designed federal standards foster the deployment of fuel saving solutions. With the certainty of long-term standards in place, manufacturers are able to make the necessary investments to scale these solutions into the fleet. Scaled production further drives down costs, enhancing automaker profitability and consumer payback.

This cycle has been in full view over the past several years as automakers have brought to market ever more efficient vehicles with record sales and strong profitability. An exhaustive technical analysis completed by the U.S. Environmental Protection Agency, National Highway Traffic Safety Administration and California Air Resources Board found that automakers were well positioned to deliver even more fuel efficiency and emissions progress in the years ahead.

With this robust technical underpinning, the U.S. Environmental Protection Agency (EPA) issued a determination to maintain the existing 2022 to 2025 standards. Back in 2012, EPA finalized these standards with the broad support of the automotive industry. But fast forward to today, and the automotive industry is pushing for the Trump Administration to reconsider this determination.

This has set up a year of incongruity where the industry’s position that the standards need to be re-examined are consistently contradicted by its product announcements. In just this past year, automakers have made the following announcements:

  • Daimler AG announced a billion dollar investment to build electric vehicles in the U.S. with production starting in the early 2020’s.
  • BMW reached 100,000 in global electric vehicle sales while promising a dozen models of electric vehicles by 2025.
  • Toyota committed to having at least 10 models of all-electric vehicles by the early 2020’s.
  • Mazda promoted an engine breakthrough that could improve efficiency by up to 30 percent, and is planning to deploy the new engine in 2019.
  • GM laid out a bold vision for a “zero crashes, zero emissions, and zero congestion” future, announced plans for 20 new electric vehicles by 2023 – including two by 2019, and rolled out the acclaimed Chevy Bolt across the U.S.
  • Ford publicized its intention to have an electric vehicle with a range of 300 miles on the market by 2020.

These are not public announcements most automakers make lightly. They make them with high confidence in their ability to meet them.

As amazing as these announcements are, none of them are even necessary to meet the vehicle greenhouse gas standards that EPA finalized in 2012 and affirmed last year. The industry is already poised to meet these standards with broader adoption of more conventional technologies.

The impressive innovation in advanced engine design and electrification – which the industry clearly believes will start to scale over the next few years – will make the standards even more attainable.

Yet, despite the remarkable recent record of innovation and the significant investments made in developing a new generation of clean vehicle solutions, the automotive industry – through its trade associations – has chosen a path to weaken our existing emissions standards and has stayed silent as EPA Administrator Scott Pruitt has threatened California’s own protective vehicle emission standards.

The industry’s actions are contradictory and concerning. Yet, there is still time for automakers to choose a different path – one that looks to the future and seeks to build a new round of protective standards that rewards the industry’s innovation, lowers costs for families and protects human health and the environment.

As the announcements are made over the coming days, we should also be listening to hear if any automakers are willing to match their record on innovation with what the industry most needs now – leadership.

Article source: http://blogs.edf.org/climate411/2018/01/16/leadership-the-auto-industrys-missing-ingredient/

Women battling to crack car industry ‘old boys club’

Detroit Motor Show – The automotive industry is famously male dominated, forcing women in the field to fight sexism, discrimination and unequal pay – although woman car experts say having Mary Barra at the helm of General Motors is a “very significant” development.

In the midst of the #MeToo movement against sexual misconduct, industry experts Maryann Keller, Michelle Krebs and Rebecca Lindland say they have never faced harassment comparable to that described by the accusers of, for example, film producer Harvey Weinstein. But speaking on the sidelines of the Detroit show, one thing was clear: as women, they felt unwelcome in the ‘old boys’ club’ of the car world.

Keller, Krebs and Lindland all work as industry analysts in a world that seems incomprehensible to many, and are regularly consulted on the battle between American and Japanese manufacturers, the ambitions of Tesla or the arm-wrestling of BMW and Mercedes-Benz.

But AutoTrader.com industry expert Krebs recalled that when she started, “There was some scepticism that I wouldn’t be sticking around.”

Keller was a financial analyst on male-heavy Wall Street before she became an car industry expert, eventually opening her own consultancy.

“I don’t know if I was taken seriously initially,” she said, remembering ‘silly events’ and ‘inappropriate remarks’ from salesmen, but declined to go into further detail.

Discrimination

Krebs and Lindland explained some of the discrimination they faced.

Lindland said: “I had to make sure that I knew everything because they doubted that a woman would know everything.”

Krebs added: “There were a lot of male bondings that I was excluded from,” referring to the golf, fishing and motorsport outings enjoyed by her colleagues.

“When you go on car launch drives you usually partner up. In the very early days nobody would ride with me.”

Former journalist Krebs began her car industry career in 1980 at a local newspaper in Michigan, and worked her way up to become the first woman to review cars for the New York Times in the 1990s – but found herself on the receiving end of insults from misogynistic readers.

She said: “I got a letter from someone in Texas that said, ‘Women have no business writing about cars – they belong in the kitchen making cookies. Make mine chocolate chips.’ I never forgot.”

Passionate about cars

Car shows are often frustrating for Lindland, who has been passionate about cars since the age of nine.

“The assumption is that I’m part of the support staff,” she said.

As for pay, Lindland added she had ‘no doubt’ that is another area where women lose out.

“Myself and other female colleagues are paid less,” she said. That’s probably for me the most frustrating and upsetting bit.”

Mistreatment 

Car companies have made efforts to hire more women, but the majority of employees are still men, and troubling allegations have surfaced about mistreatment of women workers at two Ford plants in Chicago.

In December, Ford boss Jim Hackett apologised to employees at the plants after a scathing expose detailed decades of sexual harassment and abuse. .

“It seems to me that there are safe places where you can have women,” said Keller, “You can be an economist, you can be in HR.”

In fact, Barra, CEO of General Motors since 2014, is the only female at the head of a large automotive group – an appointment Keller described as “very, very significant.”

‘Bring your husband’

However, she said questions were raised about Barra’s credentials, despite the fact she had spent her entire career in the car industry, while Ford’s newly appointed, less experienced Hackett faced no such scrutiny.

“I think it was because she’s a woman,” said Keller, comparing perceptions of women working in the industry to manufacturers’ view of female customers.

“As recently as the 1990s, if I went into a dealership to buy a car, they would probably say bring your husband.”

Indeed, it took years for the three women to earn their colleagues’ respect – a moment Lindland will not forget.

“I still remember when they said, you know, we now know that you have petrol in your blood,” she said.

Agence France-Presse

Article source: https://www.iol.co.za/motoring/industry-news/women-battling-to-crack-car-industry-old-boys-club-12765407

Positioning Canada’s Automotive Industry as a Leading Destination …

At the meeting, Mr. Ray Tanguay, who has served as Automotive Advisor to Minister Bains and Minister Duguid for the past two and half years, presented his findings and recommendations on how Canada and Ontario can strengthen and grow the automotive industry, summarizing his extensive consultations with stakeholders home and abroad.  In his final report, “Drive to Win”, he has included a new vision for Canada’s automotive industry to be “the location of choice for automotive manufacturing, services, and research by developing our people, skills, and technology to compete and contribute to a prosperous Canada.”  This vision builds on a framework of success that seeks to develop Canada’s value proposition through a focus on people, innovative technological capacities, and enabling infrastructure.

“I want to thank Ray for the work he has done on behalf of both governments and the industry, engaging stakeholders and leveraging their insights.  As the automotive sector undergoes massive change with emerging and disruptive technologies, I am pleased to see that Ray’s recommendations recognize Canada’s innovative capabilities and the opportunity to position Canada as a location of choice for the design and development of the car of the future.”
— The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

“We thank Ray for his excellent insights and expertise as we continue our work with industry partners to attract investment, boost innovation and safeguard jobs. Ray has laid out a roadmap for a prosperous auto sector that aligns with our own vision, one based on strengthening core manufacturing while leading in transformative technologies, building world-class talent, and fostering a vibrant innovation ecosystem.”
— The Honourable Brad Duguid, Ontario Minister of Economic Development and Growth

Building on the theme of preparing for the future amidst transformation and a changing automotive industry, CAPC also discussed its forward agenda and ways to ensure its ongoing efforts address the opportunities for Canada in designing, developing, and manufacturing the car of the future.    

The past year has been an important one for Canada’s automotive industry and CAPC has played an important role in advancing our competitiveness. As we continue to focus on leveraging Canada’s talent and technological innovation‎, the importance of working collaboratively through CAPC will only grow as trends such as zero emission vehicles and autonomous driving increasingly define mobility in Canada and around the world.
Don Walker, Magna CEO and Chairman of CAPC

Looking ahead in 2018, CAPC reiterated the ongoing importance for all stakeholders (government, industry, labour and academia) to be actively involved in promoting Canada as a jurisdiction of choice, leveraging the unique partnership that exists within the Canadian industry and driving growth through innovation.  

Background

The Canadian Automotive Partnership Council (CAPC) is an industry-led organization whose mandate is to address the key competitiveness issues facing the Canadian automotive industry. Membership comprises the CEOs of Canada’s five automotive assemblers, CEOs of Canada’s leading parts suppliers, representatives from labour, academia, and aftermarket and dealer associations, as well as federal, Ontario and Quebec industry ministers. Today’s meeting was chaired by the Chair of CAPC, Don Walker, who is also the President and CEO of Magna International Inc.

SOURCE Innovation, Science and Economic Development Canada

For further information: Canadian Automotive Partnership Council, Michael Sinnaeve, Vice-President Operational Improvement and Quality, Magna International, 905-726-7086, mike.sinnaeve@magna.com; Government of Canada, Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, ic.mediarelations-mediasrelations.ic@canada.ca; Government of Ontario, Office of the Minister of Economic Development and Growth, Daniel Bitonti, 416-325-7569, daniel.bitonti@ontario.ca

Related Links

http://www.ic.gc.ca/eic/site/icgc.nsf/eng/home

Organization Profile





Innovation, Science and Economic Development Canada




Article source: https://www.newswire.ca/news-releases/positioning-canadas-automotive-industry-as-a-leading-destination-for-the-design-development-and-manufacturing-of-the-car-of-the-future-669441843.html

Ontario Invests in Auto Industry Innovation

Ontario Invests in Auto Industry Innovation

Partnership with Linamar Boosts Technology, RD, Creates up to 1,500 New Jobs

January 15, 2018 9:00 A.M.

Ministry of Economic Development and Growth

Ontario and Canada are partnering with Linamar to advance cutting-edge auto technology, boost RD and help create up to 1,500 new jobs and retain about 8,000 others in the province.

Brad Duguid, Ontario Minister of Economic Development and Growth, and Navdeep Bains, Federal Minister of Innovation, Science and Economic Development, were in Guelph today to make the announcement.

The investment will help Linamar:

  • Manufacture next-generation transmission and drivetrain components and systems
  • Build high-efficiency engine components
  • Develop and produce electrified and connected vehicle technologies
  • Create a dedicated Innovation Centre focussed on artificial intelligence, machine learning, collaborative robotics and lightweight components.

This investment solidifies Ontario’s leadership in the development and manufacturing of the next generation of vehicles. It will also increase technological capabilities in the supply chain, making the province’s automotive sector more competitive. Ontario is the top vehicle producer in North America, and is uniquely positioned to lead the development of exciting new automotive technologies worldwide, attracting new investments and jobs to the province.

Investing in advanced manufacturing and innovation is part of Ontario’s plan to create fairness and opportunity during this period of rapid economic change. The plan includes a higher minimum wage and better working conditions, free tuition for hundreds of thousands of students, easier access to affordable child care, and free prescription drugs for everyone under 25 through the biggest expansion of medicare in a generation.

Quick Facts

  • Ontario is providing Linamar with a conditional grant through the Jobs and Prosperity Fund of up to $50 million as part of a project with overall eligible costs of up to $500 million. The project duration is until 2024 with job commitments lasting until 2029. The Government of Canada is also providing matching funding towards the project.
  • Ontario is the only region in the world with five global automotive assemblers — Fiat-Chrysler, Ford, General Motors, Honda and Toyota — as well as truck manufacturer Hino.
  • Vehicle assembly and auto parts production directly supports more than 100,000 jobs in Ontario, with hundreds of thousands more spin-off jobs across our province.
  • The province recently announced the Autonomous Vehicle Innovation Network (AVIN) — $80 million over five years — to harness the economic and environmental benefits of connected and autonomous vehicle (C/AV) technologies.
  • Ontario plans to increase the number of postsecondary students graduating in science, technology, engineering and mathematics (STEM) disciplines by 25 per cent over the next five years, to 50,000 per year. This will give Ontario the highest number per capita of postsecondary STEM graduates in North America.

Additional Resources

Quotes

Brad Duguid

“Ontario’s auto industry continues to attract investment, even in the midst of uncertainty about NAFTA, which proves our foundational strength when it comes to building and developing new vehicles. Partnerships like this one support our long-term competiveness and help Ontario continue to lead the way in transformative vehicle technologies.”

Brad Duguid

Minister of Economic Development and Growth

“Our government is investing in automotive innovation, one of Canada’s leading sectors. This investment will create and maintain middle-class jobs in Southern Ontario and drive economic growth in the area. Investing in these projects also means that Canadian manufacturers can remain globally competitive and a leader in technological advancements.”

Navdeep Bains

Federal Minister of Innovation, Science and Economic Development

Liz Sandals

“Linamar is an integral part of Ontario’s manufacturing sector and is a great example of a success story in southwestern Ontario. Our government continues to work with businesses like Linamar that help boost the economy and create good, stable jobs. I’m delighted the government can be part of the long-term vision for a business that continues to innovate and grow in Guelph.”

Liz Sandals

MPP for Guelph

“We are thrilled by the support shown today by both our federal and provincial governments for our significant investment in innovation. Innovation is the single most important thing we can do in terms of both product design, process design and material development to solve global problems and create opportunities for us all to succeed. To have our government support us in that endeavour is fantastic, further cementing the fact that Canada is a great place for advanced manufacturing to thrive.”

Linda Hasenfratz

CEO, Linamar Corporation

Article source: https://news.ontario.ca/medg/en/2018/01/ontario-invests-in-auto-industry-innovation.html

Global Automation Market in Automotive Industry 2018-2022 – Rising Technological Advances in PLC Leading to …

DUBLIN–(BUSINESS WIRE)–The “Global
Automation Market in Automotive Industry 2018-2022″
report has
been added to ResearchAndMarkets.com’s offering.

Global automation market in automotive industry to grow at a CAGR of
8.33% during the period 2018-2022.

The report covers the present scenario and the growth prospects of the
global automation market in automotive industry for 2018-2022. To
calculate the market size, the report presents a detailed picture of the
market by way of study, synthesis, and summation of data from multiple
sources.

One trend in the market is emergence of smart manufacturing. The
adoption of smart manufacturing enables industrial advances with the
help of advanced computing, analytics, low-cost sensing, and new levels
of connectivity enabled by the Internet. The major objectives of smart
manufacturing are flow optimization and customization, asset tracking,
predictive maintenance, and real-time inventory optimization.

One driver in the market is rising technological advances in PLC leading
to growth of PAC market. PLC is one of the key solutions offered by any
automation solutions vendor. It has been widely adopted across all the
industries worldwide for 40 years. Although the PAC market is on the
verge of maturity, recent advances such as PACs are supporting the
market in terms of operability. PACs are advanced versions of PLCs and
provide greater interoperability, flexibility in programming, and large
memory capacity. A PAC is basically a PC merged with PLC to automate
control of the equipment. PAC’s hardware architecture and software are
designed to be more user- friendly to the IT/computer programmer.

The global automation market in the automotive industry is a
contributing segment of the global industrial automation software
market. Industrial automation software includes human-machine interface
(HMI), manufacturing execution system (1v1ES), programmable logical
controller (PLC), distributed control system (DCS), and supervisory
control and data acquisition (SCADA). Industrial automation software is
widely used in the oil and gas, power, automotive, food and beverage,
pharmaceutical, chemical, aerospace and defense, and electrical and
electronics industries.

Key Vendors

  • ABB
  • General Electric
  • Emerson Electric
  • Rockwell Automation
  • Schneider Electric
  • Siemens

Other Prominent Vendors

  • Applied Materials
  • Apriso
  • Aspen Technology
  • Aurotek
  • Auto Control Systems
  • Automation and control systems
  • DENSO
  • FANUC

Key Topics Covered:

Part 01: Executive Summary

Part 02: Scope of the Report

Part 03: Research Methodology

Part 04: Introduction

Part 05: Market Landscape

Part 06: Market Sizing

Part 07: Five Forces Analysis

Part 08: Market Segmentation by Technology

Part 09: Customer Landscape

Part 10: Regional Landscape

Part 11: Decision Framework

Part 12: Drivers and Challenges

Part 13: Market Trends

Part 14: Vendor Landscape

Part 15: Vendor Analysis

For more information about this report visit https://www.researchandmarkets.com/research/4pqhf7/global_automation?w=4

Article source: https://www.businesswire.com/news/home/20180115005359/en/Global-Automation-Market-Automotive-Industry-2018-2022--

Investor: Mobility shifting auto industry

Detroit — The numbers don’t lie: technology companies and automakers are investing billions in smaller companies involved in mobility. And those investments will change transportation within the decade.

That’s at least according to Chris Thomas, co-founder and partner of venture capital firm Fontinalis Partners, LLC, which he started with Bill Ford Jr. in 2009. Speaking at a Society of Automotive Analysts conference at the Gem Theatre on Sunday during the Detroit auto show, Thomas told industry analysts that change is coming to the automotive and transportation industries sooner than some will say publicly.

Those who spoke before Thomas tried to make clear that the global auto industry is in the early stages of a monumental shift. Automakers have to contend with autonomous vehicles, electric powertrains and changes to how human beings use transit.

But some analysts said the shift won’t be complete for over two decades. For all the talk of a self-driving future, no one thinks self-driving vehicles are going to replace human-piloted vehicles any time soon.

Thomas disagrees.

Robot cars won’t boot human-piloted vehicles off the road within the next five years, but the industry is due for a disruption, he said. And Detroit could lead the charge if venture capitalists and big companies invest properly in companies with an eye on the future.

“Autonomy is going to change the lives of people in the next five years,” Thomas said. “We are at an inflection point. We as a sector, as a region, must move together if we are going to win. If we don’t do that, I promise you that we’re going to be passed by.”

He applauded Gov. Rick Snyder and Detroit Mayor Mike Duggan for efforts in pushing Detroit and Michigan to the front of autonomous vehicle testing. Thomas suggested that focusing only on testing misses several stages of development that Michigan could target.

“We have more people here that are currently creating what moves people and goods than anyone else,” he said.

Fontinalis focuses on determining what the industry needs so that the firm can find startups to invest in and grow to meet a demand. Fontinalis has invested in several companies. One of them, nuTonomy, was just acquired by Delphi for $450 million in October.

While part of Thomas’s keynote address focused on how to make smart investments in mobility, he shared an aggressive and confident view of how full autonomous vehicles will integrate into society.

There won’t just be fleets of self-driving vehicles driving in geo-fenced areas, he said. That’s a conservative and widely-accepted guess on how autonomous vehicles will work at first.

Not everyone wants to share those vehicles, Thomas said.

“All of us are going to want autonomous assets that are bespoke,” he said.

But just because “new auto” will change the industry, it doesn’t mean it’s the end of the Motor City.

Thomas headquartered Fontinalis in Detroit for a reason, he said. He urged those gathered at the Gem Sunday to get serious about the future of the industry. It’s already here, he said, because people are already developing the systems and technology for the future of transportation.

Said Thomas: ‘We have a very special opportunity here in Detroit to drive the future of mobility.”

ithibodeau@detroitnews.com

Twitter: @Ian_Thibodeau

Article source: http://www.detroitnews.com/story/business/autos/detroit-auto-show/2018/01/14/society-automotive-analysts-fontinalis-partners/109404580/

US auto industry jobs down under Trump

DETROIT, Michigan: A year after dressing down carmakers for cutting US jobs due to trade agreements and automation, has President Donald Trump delivered on his vow to turn the tide?

The US president got some good news just four days before the Detroit auto show when Fiat Chrysler announced it would shift production of its Ram 1500 to Michigan, adding 2,500 jobs.

“Thank you Chrysler, a very wise decision,” Trump said on Twitter. “The voters in Michigan are very happy they voted for Trump/Pence. Plenty of more to follow!”

Notwithstanding FCA’s announcement last week, the overall picture for US auto jobs has been much less impressive in the year since Trump became president, jobs figures show.

Net employment in the auto sector (manufacturing and suppliers) stood at 783,200 at the end of November, down from 788,900 at the end of 2016, according to the US Bureau of Labor Statistics.

“Overall, US auto employment was down slightly last year. Sales and production were also down, and employment is closely tied to output,” said Kristin Dziczek, an expert at the Center for Automotive Research.

Under pressure from Trump, General Motors promised last March to add or retain 900 jobs in Michigan over 12 months. But even if the biggest US automaker made good on that pledge, its overall US hourly workforce dropped to 52,000 at the end of 2017 from 55,000 a year earlier.

GM said the fall was due to shifting US consumer buying trends, which led to “actions we took at a few car plants in 2017 to adjust production as the market shifted from cars to crossovers/SUVs,” said GM spokesman Patrick Morrissey.

NAFTA Uncertainty

“Consumer preferences have rapidly shifted from cars to crossovers and trucks,” said Dave Sullivan, an expert at AutoPacific.com, confirming GM’s stance.

Examples of GM factories hit by the company’s austerity include Lordstown, Ohio, where the Chevrolet Cruze is produced and Grand River, Michigan, which manufactures the Cadillac CTS and ATS and the Chevrolet Camaro.

Ford has reversed a promise to keep production of the Ford Focus in Grand River, Michigan and will shift the manufacturing to China.

Trump’s agenda includes tax reform, trade agreement rewrites, regulatory reform and workforce policy. With the exception of tax reform, “most of these issues have not yet been finalized,” said Keith Belton, who directors the manufacturing policy initiative at Indiana University.

But “it is clear that the Trump administration has put manufacturing issues on its policy agenda,” Belton added.

Data show US car imports have risen from overseas manufacturing centers, including China, India and Mexico, which saw a 9.4 per cent rise in car exports to the US in 2017 from a year earlier.

But the enactment of US tax reform could change the picture, creating incentives for companies to produce in the US because of a lower tax rate.

Passage of the tax cut likely helped seal Toyota and Mazda’s decision announced last week to build a new factory in Alabama, said Cox Automotive economist Jonathan Smoke.

“In and of itself it (lower taxes) probably wouldn’t be the single factor, but it probably helps to probably be the tiebreaker if you’re trying to make the decision,” Smoke said.

Still unresolved are talks between the US, Mexico and Canada on a revamped NAFTA. The great fear is that a US exit from NAFTA means vehicles now made in Mexico and exported to the US could face tariffs of 25 per cent.

If a company decides that scenario is realistic, “then a decision to do something new in US vs Mexico suddenly becomes, ‘Oh, the US is favorable because that takes that risk off the table,’” Smoke said

Many automakers say it is too soon to make any decisions because of NAFTA.

“We continue to evaluate our footprint on an ongoing basis,” said Dan Ammann, president of GM, which exports trucks from Mexico to the US.

Article source: https://www.channelnewsasia.com/news/world/us-auto-industry-jobs-down-under-trump-9862324