Category: Syllabus Schedule

As the chief economists at Ford mentioned several times Congress has put in place the seemingly unreasonable legislation that by 2025 car fleets must have…

One of the areas constantly in the background of this econ of the auto industry course was car culture. In fact, it is important enough that we even spent time reading and discussing Tom Wolfe’s “The Kandy-Colored Tangerine-Flake Streamline Baby,” a collection of essays which delve into car culture in the U.S. during the early 1960’s.

http://www.autonews.com/article/20130514/COPY01/305149917#axzz2TbAtYhdj Fiat and Maserati (both part of the same company) had to halt production due to a supplier not delivering plastic components that go into…

After two years GM share price has gone above the $33 IPO it had, in these two years at maxed out at around $38 and…

http://www.autonews.com/apps/pbcs.dll/article?AID=/20130516/GLOBAL03/305169995/new-s-class-key-to-boosting-mercedes-profit-margins-china-sales#axzz2TYz8JwpC It seems that Zetsche is not wanting to sell the new S-Class to the driver, but more to the passenger. The new S-Class will have…

http://www.autonews.com/apps/pbcs.dll/article?AID=/20130517/GLOBAL03/305189998/in-boost-to-gm-and-vw-china-resumes-incentives-for-foreign-auto#axzz2TYpsiFje   China will encourage foreign investment in order to increase labor-intensive projects in the central and western regions. This will reverse a policy created…

As Dan mentioned used car sales are down 6% in the first quarter of 2013. This is not good news for dealers. As we learned…

Out of everything we have learned in this class, what has had the greatest impact on me personally is the realization of the importance of being globally diverse. From various national economies taking downward turns, to devastating tsunamis, I have learned that if you aren’t spread out, you are taking a major risk.

In an increasingly interdependent world it is important to not only seek profit globally, but to spread risk globally. Metelsa is an excellent example, expanding to Russia and Vietnam. A slow down in the North American industry would hurt, but not totally devastate the company like a company with “all of its eggs in one basket.”

Safety, what is it worth? As an OEM you obviously have to produce a car to a safety standard that will allow it onto the road legally. But, how much should you invest in producing a safe car? Engineering hours aren’t cheap, and making a safe car takes lots and lots of them.

       The new Subaru Forester is the first of around 13 vehicles to get a “good” rating on new, more stringent, IHSA safety test. One has to wonder though, for Subaru, was it worth it? How many fewer cars would Subaru sell with a “4 star” rating vs a “5 star” rating?

Decisions like these are faced by automakers every day. Quality, in any area, is not cheap. What people see and touch is often prioritized above what is underneath. For example, would you rather buy a “5 star” safe car with paint that will people would bet it’s the latter. l after 2-3 years, or a “4 star” car with flawless, show quality, paint. For most people, Automakers make decisions like this, although maybe not to this exact level.