• CMTS Toronto 2011

    Aug 23
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    To be relevant in manufacturing today, you know it’s essential to constantly up your game. It’s crucial to the success of your business to integrate the latest technology, equipment, lean practices, management strategies and green solutions into your daily operations. The question is: how do you fit it all in when the world is changing at light speed, information is coming at you from all directions, and your resources are stretched to the breaking point?

    The answer is CMTS.

    Canada’s ultimate manufacturing experience – CMTS allows you to break through the everyday clutter of information to find the exact solutions you need. Walk the show floor to see live equipment demonstrations and engage in real conversations with suppliers who can help you achieve your goals. Beyond the show floor, you will experience an exclusive industry keynote, participate in interactive panel discussions and expand your knowledge and reach through multiple networking and learning opportunities.

    You know what you need to do — we just make it easier to get the job done. Include CMTS in your plans for 2011.

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Companies Urged To Embrace Outsourced Engineering Services // News & Events // StampingSimulation.com
  • Companies Urged To Embrace Outsourced Engineering Services

    May 12
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    "Engineering operations of companies in most industries...are under increasing pressure to more quickly design, manufacture and launch new products in the marketplace in response to ever-shorter product lifecycles and greater demand," and are further responsible for keeping the company innovative. But "leading companies are succeeding by augmenting their existing engineering capabilities with outsourced services to meet today's product development needs, while reducing operating costs, and positioning themselves for sustained high performance," he writes, and provides a list of examples from various industries. "Embracing outsourced services as part of the company's growth strategy will give companies the ability to stay ahead of the competition and remain on the path towards high performance in an increasingly challenging, global market."

    StampingSimulation.com was established to bring Hi Tech forming simulation technology within reach of the entire tooling industry. Previously only afforded at OEM or Tier One level, the business model allows customers of all shapes and sizes instant access to the technology and a wealth of experience and knowledge - on demand, exactly when they need it, only when they need it.

    Ken Taormina, global managing director of Engineering Services at Accenture, agrees with the business model, as he writes in the April 21 edition of IndustryWeek:

    "Engineering operations of companies in most industries...are under increasing pressure to more quickly design, manufacture and launch new products in the marketplace in response to ever-shorter product lifecycles and greater demand," and are further responsible for keeping the company innovative. But "leading companies are succeeding by augmenting their existing engineering capabilities with outsourced services to meet today's product development needs, while reducing operating costs, and positioning themselves for sustained high performance," he writes, and provides a list of examples from various industries. "Embracing outsourced services as part of the company's growth strategy will give companies the ability to stay ahead of the competition and remain on the path towards high performance in an increasingly challenging, global market."

    The full article can be found online here.

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The Importance of Final Validation // News & Events // StampingSimulation.com
  • The Importance of Final Validation

    Apr 11
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    There are TWO ways to get "accurate" results that will match reality as closely as possible:

    Final validation

    StampingSimulation.com offers world class AutoForm-Incremental, using two levels of service: SimulateLite and SimulateComplete.

    SimulateLite is a virtual tryout service, where 3D models of the actual tooling blocks (solids or surfaces) are used in simulation to run the tool as if it were actually in the press. When combined with the correct material properties (which should be collected via our lab testing service), this is effectively a “final validation” of the tool before it is built. If problems are found, our SimulateLite base cost includes a total of 3x simulations to help find and fix the problem, before any tool steel is cut.

    SimulateComplete is a process design and engineering service. Starting with no more than the final 3D product shape, StampingSimulation Engineers design and simulate a complete working process, including the removal of typical sheet metal forming problems, either by process or product changes.

    In either case, there are TWO ways to get "accurate" results that will match reality as closely as possible:

    1. Always send us the final 3D tooling data (we need to simulate the "actual" tool design, once it is ready, for most accurate results.) This may be AFTER a SimulateComplete job is finished or just before data is released to the shop floor for machining.

    2. Perform material lab testing, that is, send a sample of "actual" material to our lab for testing and the data will be used in simulation. (Generic properties or mills certs are never the same as the real material on the shop floor).

    You can read more about material lab testing here.

    We call the above two steps “final validation” and it should be done on every job, just before the tool is made to ensure there are no unexpected surprise or problems that appear due to tool design changes or errors that do not match the original simulations.

    You may like to read more about the importance of material properties and metal forming here:

    http://www.metalformingmagazine.com/digital-magazine/2011/03/index.asp (pages 40-41)

MetalForming Magazine Experts // News & Events // StampingSimulation.com
Know thy Steel // News & Events // StampingSimulation.com
  • Know thy Steel

    Apr 04
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    For a long time now, I have been sounding like a broken record about how important it is to test steel samples for use in simulation, and how “generic” properties or “mill certs” are hardly worth the paper they are written on. Also, I am always strongly suggesting that our customer do not “guess” material properties for use in simulation, and if they do, they must assume responsibility if reality does not match simulation.

     

    Furthermore, there are more and more examples of parts we simulate, when the MATERIAL will make or break the part. It can sometimes be tough to hear that you have to “change the material” or hear “this product shape cannot be formed in this steel”, but these problems will become more and more frequent as the industry switches to AHSS (Advanced High Strength Steels) and other light weight, high strength alloys.

    We have saved customers thousands of dollars and months of work, by identifying very quickly a material selection problem for a given part geometry. It’s unfortunate that sometimes this is seen as a “bad” result and people sometimes argue until their death that “the material cannot be changed, the part shape cannot be changed”. Ultimately, you can not argue with the results you get in the press (the press does not lie), and learning the hard way can be a hard pill to swallow, but for many companies, this may be the difference between being a viable business or not.

    Fortunately, this is not just the view of one determined sheet metal forming simulation engineer, from StampingSimulation.com (aka me): the industry’s leading experts have been preaching about these issues for as long as sheet metal forming has been around. But is anyone listening?

    Sheet metal properties should never be brushed over or guessed, when implementing forming simulation. StampingSimulation.com makes collecting actual tensile test data from actual material samples cheap and fast, when using SimulateLite or SimulateComplete simulation services. Those who skip “the lab test” often pay dearly in the end.

    But there’s no need to believe me and my ranting. Read more here, directly from Stuart Keeler in March Edition of Metal Forming Magazine:

    http://www.metalformingmagazine.com/digital-magazine/2011/03/index.asp


    Be sure to also check out these resources as well:

    http://stampingsimulation.com/news-article/material_tensile_testing_explained/
    http://files.stampingsimulation.com/downloads/stamping_simulation_tensile_test.mpg 
    SimulateLite
     & SimulateComplete

Ford Psts $6.6bn profit in 2011 // News & Events // StampingSimulation.com
  • Ford Psts $6.6bn profit in 2011

    Jan 24
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    The financial result was Ford’s best in more than a decade. The brand now has $US20.5 billion in gross cash on hand and a $US19.1 billion debt.

    Ford’s debt, which it took on board before the global financial crisis in an attempt to protect itself fiscally, decreased 43 percent in 2010, down from $US33.6 billion to $US19.1 billion.

    Fourth quarter results were down $US696 million from 2009 to $US190 million in 2010, although that included a $US960 million debt repayment which helped reduce the company’s automotive debt by $US1.9 billion.

    Ford Motor Co President and CEO, Alan Mulally, said the results were beyond Ford’s estimates and would be followed by continued growth in 2011.

    “Our 2010 results exceeded our expectations, accelerating our transition from fixing the business fundamentals to delivering profitable growth for all,” Mr Mulally said.

    “We are investing in an unprecedented amount of products, technology and growth in all regions of the world.

    “We expect continued improvement in 2011, driven primarily by our growing product strength, a gradually strengthening global economy and an unrelenting focus on improving the competitiveness of all of our operations.”

    In 2010, Ford launched 24 new or significantly redesigned vehicles around the world and announced more than $US9 billion in global investments, including $US4.5 billion in North and South America, $US2.9 billion in Europe and $US1.7 billion in Asia Pacific Africa.

GM Sales in China to Slow in 2011? // News & Events // StampingSimulation.com
  • GM Sales in China to Slow in 2011?

    Jan 21
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    Tim Lee, president of international operations at General Motors Co., comments on sales growth and manufacturing capacity in China. He spoke in New Delhi today.

     

    “In China, in 2010, the market grew at an unbelievably high rate of nearly 40 percent. We do not see that kind of growth recurring in China in 2011. But we do see the Chinese market growing in the 10 percent to 15 percent range in 2011.”

    “In China and India we will always try to stay slightly ahead of demand patterns with our manufacturing base and distribution potential. In China today, because the growth rates have been so strong for the last two years, we are actually little bit behind in terms of manufacturing capacity. We will work hard to catch up.”

Manufacturing Reins in Ohio // News & Events // StampingSimulation.com
  • Manufacturing Reins in Ohio

    Jan 19
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    Is manufacturing still king in northwest Ohio?

    As the economy improves, many changes are being made. A decline in manufacturing jobs caused by the downturn, may have may wondering if it's still a top employer in the region, if not state. While agriculture remains the top business, who is the top employer?

    The Ohio Department of Development's Policy Research and Strategic Planning Office listed the state's top employers as of 2010. The top five employers throughout the state are comprised of retail and health sector businesses as well as education.

     

    The top five employers in the state were: Wal-Mart, 51,780 employees; Cleveland Clinic, 40,000 employees; Kroger Co., 39,000 employees; Catholic Healthcare Partners, 29,650 employees; and Ohio State University, 27,500 employees.
     
    Local industries such as General Motors ranked 34th, with a total of 8,900 employees in the state.
     
    That represents a shift from previous years, where the top employers primarily dealt with the manufacturing sector rather than retail and health. In 1997, General Motors was the top employer in the state with 60,000 employees. Rounding out the top employers that year were Kroger's, Cleveland Clinic, Ford and General Electric.
     
    However in northwest Ohio, agriculture and manufacturing are still the main industries.
     
    "We're still heavily dependent on manufacturing," said Jerry Hayes, Defiance County Economic Development director.
     
    "We are always trying to diversify. Manufacturing is still the biggest industry, supplying the most multiplier jobs in northwest Ohio."
     
    Hayes added that service industries such as banks and medical service facilities have been gaining ground, but manufacturing remains a stable industry.
     
    "Manufacturing is number one after agriculture," he said. "But we're certainly encouraging service industries."
     
    The top five employers for Defiance County, according to the economic development office, include: General Motors, 1,450 employees; Defiance Metal Products, 705 employees; Johns Mansville, 680 employees; and Defiance Regional Medical Center and Defiance Clinic, approximately 320 employees each.
     
    Tony Langham, director of Paulding County Economic Development, said it's difficult to say if service industries are gaining ground in the county. The office only tracks manufacturers, not retail, private or service industries.
     
    In Paulding County, the top employees in the manufacturing industry are: Cooper Farms, Atwood, Alex Products, Taylor Made Glass and Spartech.
     
    Ralph Lange, director of the Henry County CIC, said that manufacturing is still the top employees there. Campbell Soup, Silgan Holding, Tenneco Inc. and Alex Products are the top ones.
     
    He doesn't however see service industries challenging manufacturing as top employer.
GM to double Volt Production? // News & Events // StampingSimulation.com
  • GM to double Volt Production?

    Jan 17
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    Akerson previously stated that Volt production in 2011 could rise from a planned 10,000 units to 25,000, and it appears as though that upward trend will continue through 2012. GM planned to produce 60,000 Volts in 2012, but Akerson is now pushing for that target to increase to 120,000 units.

     

    “We want to stay sharply focused on technology,” Akerson said at an event earlier this month. “We don’t want to be caught flat-footed as we were in 2008.”
     
    However, Akerson’s goal of 120,000 units is largely dependent on supplier capacity and consumer demand. Parts shortages have already hampered some vehicle production this year, and it remains to be seen if consumer demand will support 120,000 Volt sales per year.
     
    An official announcement on Volt production goals could come at next week’s Washington Auto Show.
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Toyota plans higher output // News & Events // StampingSimulation.com
  • Toyota plans higher output

    Jan 15
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    Toyota Motor Corp. plans to produce more vehicles without increasing capital investments as Volkswagen AG attempts to surpass it as the world’s largest carmaker by 2018.

    “We are challenging ourselves to produce more even as we restrain capital spending,” President Akio Toyoda said yesterday at the North American International Auto Show in Detroit.

    The carmaker plans to keep annual capital spending at about 700 billion yen ($8.46 billion) for at least the next five years, Executive Vice President Atsushi Niimi said Dec. 24. With more efficient processes, the Toyota City, Japan-based carmaker seeks to be as productive as when it spent more than twice that three years ago, he said.

    “There have been companies that have gone belly-up for carrying excess capacity, but no company has gone bankrupt for not being able to produce,” Niimi said. “We now realize humbly that we shouldn’t make cars until we’re absolutely certain they will sell.”

Detroit recovers as South surges // News & Events // StampingSimulation.com
  • Detroit recovers as South surges

    Jan 04
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    While Detroit and Michigan are recovering from the recession and auto industry meltdown, the South is surging with two new assembly plants slated to open this year.

     

    Volkswagen's Chattanooga assembly plant and Toyota's manufacturing facility near Tupelo, Miss., along with their suppliers will employ thousands of new workers as the auto industry continues a shift South.
     
    "Tennessee is poised for great things," said U.S. Sen. Bob Corker, R-Tenn., at the North American International Auto Show this week.
     
    Corker said he's still hopeful Detroit comes back strong.
     
    "Alan Mulally is one of my heroes," he said about the Ford Motor Co. chief executive. At the auto show, Ford announced plans to hire as many as 7,000 workers over the next two years.
     
    But, Corker said Tennessee is a "pro-business state" appealing to not just auto manufacturers but other industries and technologies as well.
     
    Earlier this week, Nissan announced it will move production of its Rogue crossover sport utility vehicle from its factory in Kyushu, Japan, to its facility in Smyrna, Tenn.
     
    The shift, which will take place by 2013, will bring more than 100,000 units of production to the Smyrna plant, according to Nissan.
     
    Meanwhile, Michigan's seasonally adjusted jobless rate for November was 12.4 percent, tied for second-highest in the nation with California and behind only Nevada.
     
    While economic developers in the South still have a lot of work to do, Tennessee's unemployment rate was 9.4 percent in November. Georgia's jobless rate was 10.1 percent.
     
    The national unemployment rate was 9.4 percent in December.
VW’s greener Passat // News & Events // StampingSimulation.com
  • VW’s greener Passat

    Jan 01
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    The 2012 Volkswagen Passat, a close sibling of the resigned Jetta in 2011 but larger and with a substantially lower price than last year’s model, was unveiled at the Detroit auto show.

    The vast changes will include a transfer of manufacturing locations to the new U.S. VW plant in Chattanooga, Tenn.

    The new Passat is VW’s latest attempt to infiltrate the former dominance in the midsize family sedan market shared by the Honda Accord and Toyota Camry.

    In addition to its U.S. production, Volkswagen has dropped the Passat’s starting prices to around $20,000, about $7,000 less than the previous model.

Ford goes ahead in India // News & Events // StampingSimulation.com
  • Ford goes ahead in India

    Dec 29
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    Ford sales in India, spearheaded by the Ford Figo, nearly tripled last year to more than 83 000 units.

    Ford India has been named "Manufacturer of the Year 2011" for its innovative practices in manufacturing and engineering excellence. The prizes were awarded at a ceremony in Mumbai last Friday.

     

    The Figo gathered a clutch of five awards including the Bloomberg UTV Autocar Car of the Year Award. Orders for the new model have passed 10 000 since its launch in March last year.
    Ford India president and managing director Michael Boneham said: "Figo's stellar performance at Bloomberg UTV Autocar with five top honours is phenomenal and is recognition of our contribution to India's automobile market.”
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Ford, Audi & GM electrify CES // News & Events // StampingSimulation.com
  • Ford, Audi & GM electrify CES

    Dec 21
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    Auto manufacturers have begun an invasion of the Consumer Electronics Show that will only grow in magnitude and significance in future years.

    Ford CEO Alan Mulally showed off the Ford Focus EV during his keynote presentation. The sedan will be differentiated from the competing Nissan Leaf and Chevrolet Volt by having double the charge rate (6.6 kilowatts). Ford's Nancy Gioia said a fully depleted battery can be recharged in 3-4 hours. Ford will begin manufacturing the vehicle at the end of this year, and will roll it out to 19 target cities during 2012. The all-electric vehicle will have an estimated driving range of 80-100 miles.

    Ford will offer a home charging unit for $499 through Best Buy, which makes it the least expensive charger on the market. Ford has customized the EV charger that was co-developed by Leviton and Coulomb Technologies to accept power at up to 32 amps.

    Audi unveiled that it would commence production by the end of 2012 of two plug-in vehicles that were previously concept cars, the A1 e-tron plug-in hybrid and the A8 e-tron battery electric vehicle. Audi's Chief Executive Engineer Ricky Hudi said the performance-oriented A8 e-tron would have a top speed of 250 kilometers power. Both vehicles will use lithium ion batteries manufactured by Sanyo. Audi is incorporating Tegra II graphics chips from NVidia to drive the displays for the vehicles, and the company would use Google Earth maps to enhance the mapping used in its navigation system.

A crowded Market? // News & Events // StampingSimulation.com
  • A crowded Market?

    Dec 17
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    FOR the past two years the Detroit motor show has been a dismal affair. But this year the parties were in full swing again. Helped by government bail-outs and with debt burdens lightened by bankruptcy, Chrysler and GM are back on their feet; Ford, the other member of Detroit’s Big Three, is thriving. It took America’s car industry 20 years and a world war to recover the three-quarters of production wiped out by the 1929 crash. By comparison, the aftermath of the latest recession has been surprisingly comfortable.

    Ominously for the locals, though, the biggest splash on opening day was made by a Volkswagen saloon, which is to be built in a new factory in Tennessee. Europe’s best big carmaker is taking aim at the heart of the American market for the first time in over 20 years. Its bold move is just one sign of growing fragmentation in a market once dominated by the Big Three and a small clutch of Japanese rivals.

    The recession sent car sales in America skidding from 16.5m in 2007 to just over 10m in 2009 (see chart, below). Since then the ride has been fairly smooth. Sales in December were equivalent to an annual rate of 12.7m cars and light trucks (sport-utility vehicles and the like), the best unaided performance since September 2008 when Lehman Brothers collapsed and credit markets froze. Industry-watchers are predicting a 10% rise this year. The most optimistic forecast sales of 14m. Analysts at Morgan Stanley, an investment bank, point to an improvement in the creditworthiness of buyers which is causing lenders to loosen their purse strings. Americans are even buying big, expensive vehicles again.

Back from the crash // News & Events // StampingSimulation.com
  • Back from the crash

    Dec 13
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    By nearly every measure of success, Michigan's auto industry is now competitive.

    Auto sales are on the upswing; corporate earnings are positive; productivity levels are on par with Japanese competitors; and quality is vastly improved, among other key benchmarks. Of course getting to this point hasn't been easy. Two of Detroit's automakers went bankrupt; thousands of jobs were lost; investors lost money; and many of the brands people loved have been eliminated.

     

    What has emerged, however, is a new industry poised to hire, increase profits and continue developing advanced automotive technology.

    U.S. light vehicle sales in 2010 increased 11 percent over an almost 30-year low in 2009. The Center for Automotive Research and most other industry forecasters are projecting another double-digit sales increase — in the neighborhood of 12 percent to 14 percent — in 2011, and the future looks bright for a continued strong sales recovery in 2012 through 2014.

    The U.S. market for cars and trucks is reviving despite the economic uncertainties. Americans are starting to replace their old vehicles with new steel. Two factors driving sales are more available consumer credit, and the fact that the average vehicle on the road today is more than 10 years old.

Electric car comeback // News & Events // StampingSimulation.com
  • Electric car comeback

    Dec 06
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    Electric vehicles are nothing new. They were invented sometime during the 1830s in Scotland and later produced on a bigger level by France and Great Britain. In 1895 America began their interest in electric vehicles with a handful of companies producing them. It did not take long for them to die off because by the 1920s America had many more miles of roadway which called for the need of longer range vehicles, oil was a lot more affordable, starter motors were invented so hand cranks were not needed and the mass production of the internal combustion engines by Henry Ford.

     

    By 1935 electric vehicles had disappeared since a gas vehicle could be purchased for about a third of what an electric vehicle cost. It was not until the 1960s and 1970 that the need for alternative fueled vehicles popped up again to reduce emissions. Small electric cars were produced as well as light duty commercial vehicles with a range of forty to sixty miles on a charge. Once the 1980’s came about these ideas also quickly faded.

    It was not until the 1990s that many legislative and regulatory actions in the US led to create electric vehicle development efforts. This is when the Big Three auto manufacturers and others in conjunction with the Department of Energy created Partnership for a New Generation of Vehicles (PNGV). This got the ball rolling with the creation of many test models which included the GM EV1. Turned out to be a great electric car but before you know it these vehicles were all recalled and this was the end of them. Later it was revealed that all these cars were sent to be crushed and you never heard another word.

    It was just ten years ago that the Toyota Prius came out as a 2001 model. It truly changed everything with a combination of electric motor and gas engine. Fuel prices fluctuated for years after it was released but when fuel prices hit there highest ever in 2008 they were the most popular vehicles on the road. Following the decline of fuel prices with the bad US economy they were close to impossible to sell.

    It’s 2011 and electric vehicles are coming back again. This will be the year that electrics make it back with Oregon leading the pack. Different than many times in the past I feel they are here to stay this time around. We have all heard of Tesla but since they are out of reach for most people due to their high cost you will be introduced to two new electric cars that will be much more affordable. Chevrolet will produce the Volt and Nissan will produce the Leaf. The $7500 tax credit will kick start the sale of these vehicles with most cars being sold out for at least the next year. Thanks to a grant from the US Department of Energy there are more than 2000 charging stations being installed now in homes and businesses throughout the state. There will also be up to 24 DC fast charge stations going in by 2012 along such routes as US 26, I-84, US 20, OR 18, OR 99W and US 101.

    Because of this Oregon really stands out and this is one of the leading reasons why vehicle and charging station manufacturers have their eye on Oregon. They plan to do a lot of business here and that is because we are ready. Oregon is laying out the infrastructure with partnerships all over the state including one of the best with Portland General Electric.

    Keep in mind that if you want one of these electric vehicles all I can say is hang in there because until manufacturing can be pushed up it will more than likely take a while.

Fords high expectations // News & Events // StampingSimulation.com
  • Fords high expectations

    Dec 01
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    Ford reduced its automotive operations’ debt by $12.8 billion last year, lowering annual interest costs by almost $1 billion. Ford, which will release fourth-quarter financial results this month, has said the auto operations would end 2010 with more cash than debt after a profitable year and a $1 billion dividend from the credit unit.

    Ford reduced its automotive operations’ debt by $12.8 billion last year, lowering annual interest costs by almost $1 billion. Ford, which will release fourth-quarter financial results this month, has said the auto operations would end 2010 with more cash than debt after a profitable year and a $1 billion dividend from the credit unit.

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Ford Philippines record sales // News & Events // StampingSimulation.com
  • Ford Philippines record sales

    Nov 23
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    Philippines - The local arm of Ford Motor Co. hit record sales to both domestic and export markets in 2010 due to the strong demand for vehicles across its lineup, the automotive firm said in a statement on June 13.

     

     
    Local sales of Ford vehicles grew by 8% to a record level of 6,063 units in 2010 while export sales of models assembled here rose by 35% to hit an all-time high of 9,858 units, Ford Group Philippines said.
     
    The feat mirrored industry-wide performance which also topped previous levels in 2010. Total car sales surged by more than a fifth over year-ago levels to 168,490 units, surpassing the previous high recorded in 1996.
     
    Ford Group Philippines attributed its strong performance to “continued strength across the full lineup of Ford nameplates”.
     
    “We are absolutely delighted to have ended the year on such a high note, which helped deliver record full-year sales for the Ford brand in 2010, reaffirming that our Filipino consumers continue to appreciate our world-class lineup of Ford vehicles, and we expect this momentum to carry in to a strong 2011,” Ford Group Philippines President Edward Krieger said.
     
    The firm’s strong export sales of units assembled at its Sta. Rosa, Laguna plant was supported by similarly strong patronage in Southeast Asian markets, Ford Group Philippines said.
     
    The car firm has been manufacturing the Ford Focus, Ford Escape and Mazda3 for export to ASEAN markets that include Thailand, Indonesia, and Malaysia since 2002.
     
    Despite the record performance, however, Ford Group Philippines remained mum on its plans for continuing assembly operations in the country with a Thailand plant poised to take over the manufacture of the Focus model by 2012.
     
    “No decision has been made yet. We are still working on the plans,” Anika Salceda-Wycoco, Ford Group Philippines assistant vice-president for communications, said in a text message yesterday.
     
    The Sta. Rosa, Laguna plant is among the 70 factories the 163,000-strong Ford Motor Co. operates worldwide.
Detroit says small cars are the future // News & Events // StampingSimulation.com
  • Detroit says small cars are the future

    Nov 19
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    The business case against small cars is strong. Simplified, it goes like this: Americans don't want them, won't pay the dramatically higher prices required for them to be profitable — and don't need them because gas still is cheap.And, all else equal, the laws of physics still mean small cars are less safe than big cars in crashes.

    None of that matters for carmakers now, though. Federal rules say that the industry's products must average 35.5 miles per gallon in 2016, and proposed regs could boost that to 62 mpg by 2025. That all but mandates shrinking cars.

    Thus, the small-car parade begins. A get-small theme was widely evident this week at the North American International Auto Show here, at the Los Angeles auto show last November and in the array of trim-size newbies arriving in America's dealer showrooms. Automakers are sinking billions of dollars into cranking up small-car production and can only hope that buyers will come.

    Not everyone thinks they will.

    "I'm a little concerned that nobody's talking about the consumer, what the buyer wants," says Rebecca Lindland, ranking industry expert at IHS Global Automotive, a consultant. She says her research tells her: "We like our big cars, and we are going to keep buying them as long as gas is relatively cheap. ...We're not going to look like Europe anytime soon."

    Even small-car specialist Fiat Auto doesn't have high expectations for the U.S. as a small-car market.

    "I don't see a big market (in small cars). I see a market. There is a big difference," says Sergio Marchionne, CEO of Fiat Auto and Chrysler Group. "We never set out to conquer the U.S. market with A and B cars."

    Those are the industry designations for the two vehicle categories smaller than the common compacts such as Honda Civic and Ford Focus, which are so-called C-segment cars. Mainstream U.S. family sedans typically are C or even larger D-segment cars, such as the Ford Taurus.

    Marchionne's comments are startling, coming from the chief of the Italian automaker given control by the U.S. government of then-broke Chrysler in 2009 in return for bringing it small-car expertise. Conventional wisdom said at the time that one of Chrysler's biggest troubles was a lack of small cars.

Data points to growth // News & Events // StampingSimulation.com
  • Data points to growth

    Nov 08
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    etail sales and industrial production both rose in December, indicating that the U.S. economic recovery is picking up as the new year begins.

    Purchases climbed 0.6 percent, capping the biggest annual increase in more than a decade, Commerce Department figures showed today in Washington. Output at factories, mines and utilities increased 0.8 percent, the most in five months, according to data from the Federal Reserve.

    Americans this year are forecast to boost the spending that accounts for 70 percent of the economy as tax cuts put more money in their pockets, increasing demand for Ford Motor Co. cars and Apple Inc. iPads. At the same time, an unexpected drop in consumer confidence indicates that rising gasoline prices and unemployment stuck above 9 percent pose a risk for sales.

Ford adding 7000 jobs // News & Events // StampingSimulation.com
  • Ford adding 7000 jobs

    Nov 05
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    It's a good time to be an engineer looking for a job at an automotive company. That's because Ford recently announced that it plans to add 7000 hourly and salaried jobs between this year and the next across the U.S.In nine cities including Detroit, Ford is searching for engineers specializing in batteries, system controls, software, and energy storage to advance the technology of electric vehicles.

    With the replacement for the popular Escape on its way, Ford is hiring 1800 workers at its Louisville Assembly Plant where the SUV will be made. Next year, the automaker says it will hire at least 2500 more new manufacturing positions.“Working with our partners, including the UAW, Ford is finding competitive ways to engineer and build even more high-quality, fuel-efficient vehicles with technologies American consumers really want,” said Mark Fields, Ford president of The Americas.

GM set for China growth // News & Events // StampingSimulation.com
  • GM set for China growth

    Nov 02
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    General Motors (GM.N) is planning to build small battery electric vehicles in China within two years, and to increase overall production in China to meet local demand, executives said on Monday.

    The small "city" type battery electric vehicles are expected to be exported at some point, possibly even to the United States, Tim Lee, GM's chief of international operations said on the sidelines of the Detroit auto show.

    "We are probably within a couple of years of being in ... production on battery electric vehicles specifically for China," Lee said told reporters.

    GM, which completed the largest ever IPO last year, is focusing on China and the United States as two critical markets.

    GM is shipping vehicles to other countries in Asia and to Chile, but it has no plans at this time for exporting China-built vehicles to the United States, Lee said.

    "But save that thought. Next year I might have a different answer," Lee said.

    Including its joint ventures in China, GM claims a 13 percent market share in China, the largest in the industry. It is the top-selling automaker in the United States.

    GM plans to introduce the Chevrolet Volt to China later in 2011. The Volt was awarded North American Car of the Year for 2011 at the auto show on Monday.

    GM has plans with China partner SAIC on the battery electric vehicles and is now testing demonstration cars, Lee said, adding that those cars eventually could be brought to the United States.

    "This is going to be most likely a constrained availability within China based on Chinese demand, and we want to have opportunity to feed other markets from other potential manufacturing sites," Lee said.

Contaminated plant ready to go // News & Events // StampingSimulation.com
  • Contaminated plant ready to go

    Oct 29
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    Louisiana regulators say contaminated soil has been cleaned up at a former General Motors plant where headlights were built.

     

    The state Department of Environmental Quality says 600 tons of soil were dug up and removed at the old GM plant in Monroe. DEQ says the site, which includes 425,000 square feet of manufacturing and distribution space, is now ready for reuse.

    DEQ says it was concerned about five contaminated spots on the 182-acre site. The site is now owned by Guideco Properties LLC.

Auto part makers on come back trail // News & Events // StampingSimulation.com
  • Auto part makers on come back trail

    Oct 27
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    When Lear Corp. (LEA-N109.362.622.45%) turned out the lights nearly two years ago at a plant in Ajax, Ont., that made seats for GM pickup trucks, Steve Batchelor knew it was game over. There was no hope of it ever reopening, he believed. “We were finished.”

    In the grim days of May, 2009, leading up the Chapter 11 bankruptcy filing by General Motors Corp., it was hard to see how the auto industry could be turned around.

    As it turns out, Mr. Batchelor, the president of local 1090 of the Canadian Auto Workers union, was wrong. Thanks to a Canadian and U.S. taxpayer bailout of tens of billions of dollars for GM and Chrysler, a catastrophic collapse of the auto industry was averted and it is clearly on the road to recovery. And a small piece of that recovery is evident in Ajax, east of Toronto, where the Lear factory is running again, making seats for Chrysler Group LLC.

    The mood in much of the industry is buoyant, especially at this week’s North American International Auto Show in Detroit, about a 20-minute drive from Lear’s corporate headquarters in Southfield, Mich.

    Ford (F-N18.65-0.03-0.16%) is adding 7,000 factory jobs in the United States, GM has returned to profitability and Chrysler Group would also be reporting profits if not for more than $1-billion (U.S.) in interest payments annually to the governments that bailed it out in 2009. One senior executive at a multinational auto parts maker – an industry veteran who has seen both its slumps and its prosperous times – describes the prevailing sentiment as “almost giddy euphoria.”

    The question is how much of that euphoria will translate into new investments by auto parts makers in Canada – creating new jobs here and returning the industry to its pre-crisis days, when the auto sector was an eight-cylinder engine driving manufacturing in Canada.

    “It’s not clear we can get back to that eight-cylinder level,” says Doug Porter, deputy chief economist at Bank of Montreal. “Ultimately, the question hinges on whether U.S. auto sales will return to pre-crisis levels on a sustained basis. I think that’s questionable. At the very least, it’s going to take a number of years.”

    Before surging gas prices and the liquidity crisis hammered auto makers in 2008, ultimately sending Chrysler and GM into Chapter 11 bankruptcy protection and causing a massive restructuring of the entire industry, auto makers enjoyed sales of 16 million vehicles annually in the U.S. market.

    Parts makers went along for the ride, with employment in the sector holding above 87,000 in Canada as late as 2007. Then it began to shrink, and quickly. For every 10 jobs in Canadian parts factories then, only seven still exist today, as employment shrank to 61,235 as of last October.

    For 350 workers at the Lear plant, the ride ended on May 14, 2009, when GM closed its pickup truck plant in Oshawa, Ont., the only customer for the seats they put together in Ajax. The Lear plant was up for sale at one point, Mr. Batchelor says.

    After it closed the plant, Lear won a contract with Chrysler to provide seats for the auto maker’s redesigned large sedans, which are assembled in Brampton, Ont., northwest of Toronto.

    Lear was looking for a non-union supplier paying wages in the $14 (Canadian) to $15 range, Mr. Batchelor says.

    CAW negotiators won the work for Ajax by agreeing to cut wages to $19 an hour from the $28 they were earning when they made seats for GM, and by shifting to a mix of defined-contribution and defined-benefit pension plans from a straight defined-benefit plan

    Some workers view that as accepting concessions, Mr. Batchelor acknowledges. “I certainly take a different view of that. We were out of work so we went from a wage rate that used to be applied to the GM to zero, to nothing, to not having any work or potential work coming into the plant.”