Month: August 2013

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Motor Industry capital declares Bankruptcy

Motor IndustryDetroit has been known as the Motor Industry capital of the world for over five decades; with several of the U.S manufacturers having their ‘homes’ entrenched in the city’s history; namely General Motors, Chrysler and Ford.

The step taken by the US City of Detroit to declare itself bankrupt is to protect itself from creditors comes after an announcement that the city has debts totally about $18billion. Detroit is the largest city to do so in the United States so far.

Can any lessons be learnt from this declaration by countries and other cities around the world? Lets’ hope so.

The city of Detroit didn’t take advantage from the Golden Age of the American Motor Industry, which brought it success and prosperity for well over half a century. Two of it’s biggest errors were; confining it’s economic investments and activities mainly to the Motor Trade. It neglected to diversify it’s economy and take advantage of it’s presence and reputation within, what was at the time, the largest market in the world.

The city’s second mistake came at a time when the American Motor Industry started to decline as it’s competitors were starting to become more prominent and influential. Germany and Japan started to make rapid steps and advancing within the Motor Trade, investing in new technologies, whilst the US was affected by internal corruption and continued to rely on a prestigious, yet outdated reputation.

Traditional competitors

The City’s Administration has realised that changes had to be made and introduced technological changes over the last few years. However, the timing was too late. New players in the worldwide Motor Industry such as Brazil, South Korea and more recently China have entered the marketplace with a strong and determined presence.

The result has been catastrophic for the City of Detroit. The city has been abandoned by most of it’s two million population, with levels roughly at around 700,000 and around 80,000 buildings also abandoned. The city has all but turned in to a ghost town, basic services have deteriorated – which will lead to more and more people leaving.

If the decline continues, in this once prosperous and wealthy city, which is part of the World’s biggest and richest economy, what would the case be if it happened in poor or developing countries. The consequences would be far greater.

Lessons need to be drawn from this unfortunate demise and from other experiences form across the globe.

Manchester

An example of acting proactively to curb a city’s decline comes from our own city of Manchester, which at one point was a world centre for fabric manufacturing. It failed after the industry collapsed due to strong competition from foreign exporters. The resulting effect was for England to be displaced as the World’s largest textile exporter. However, unlike Detroit, Manchester’s Officials and Administrators quickly acted, diversifying the city’s economy. And with time it turned into a hub for university education and began competing with other prestigious cities such Oxford and Cambridge.

This change and the development of other services and productives spared the city from an economical collapse, putting it back on the map of British Economy.

The changes undertaken by Manchester proves that the process of diversifying or shifting from a certain economic sector is not an easy move. But never the less, trying to predict future trends and taking into account technological and scientific advances that will ultimately lead to changes in the nature of consumer goods and how they will meet the demands of consumers in this, the age of the Information Revolution. It is a very important issue in order to maintain growth and remain within the circle of competition.

Manufacturer growth equals more Automotive Jobs

automotive jobsNorfolk based manufacturer, Lotus looks to be on the rise after it announced recently the creation of over 100 new automotive jobs to meet the rising demand for it’s cars. The increase of follows an investment of £100m from their parent company; DRB-HICOM earlier in 2013.

The new motor industry jobs will be spread across the company; with forty manufacturing operatives, based at the head quarter’s production line. Another 45 will be Specialist Automotive Engineers will also be recruited, along with 18 graduate positions also available.

The newly created Engineer and Graduate positions will be allocated to Lotus Engineering, the brand’s in-house consultancy, which is used to configure other manufacturers’ cars, making them lighter with better handling, whilst integrating more advanced and intuitive driver aids.

The additional motor trade jobs have come about due to the unveiling of Lotus’ new Exige S Roadster earlier this year. This new model has expanded the range to seven cars; three Elise models, two Exiges, the Evora and the Evora S flagships. The future is bright for Louts as international demand is growing for this British marque.

This trend is particularly strong in the Far East, thanks to Lotus’ Malaysian owners; DRB-HICOM.
Lotus have reported that 90% of it’s production output is now exported. 2012 saw UK sales amount to 137 vehicles. Whilst in 2013, registrations have reached 97 so far.

To keep up to speed with the latest JGA Automotive Jobs, click here

Are Cheap Leasing Options driving the US Automotive Industry?

automotive industry
The American Automotive Industry and in particular; the Toyota Motor Corporation in Detroit, USA is using a cheap lease option on it’s Camry ($199 a month), just to keep it as the top selling Car in the United States. Toyota used a very similar tactic to recover from a record number of product recalls after Japan’s tsunami in 2011. Now it seems, this tactic is being utilised by the rest of the Automotive Industry on the other side of ‘the pond’.

This was once the main weapon used in an arsenal for selling luxury vehicles; now, leasing is fast becoming widely used when it comes to selling the more popular family saloons (or sedans), such as Ford’s Fusion and Honda’s Accord. Supported by high used car prices, low interest rates on offer and the Americans’ tendency to purchase vehicles on monthly payments – car/auto-leasing is at it’s highest levels in a decade and helping pace the industry’s most successful year since 2007.

“It’s a great way to present a product at very affordable monthly prices,” Peter DeLongchamps, a vice president for Group 1 Automotive Inc., the fourth-largest U.S. auto dealership group and one of the nation’s biggest Toyota retailers, said by telephone. “There’s absolutely no question” Toyota is using leasing to contend in an increasingly competitive mid-size car segment.

According to J.D Power and Associates, leading Global Market Research company; “Leasing’s share of new vehicle sales in the U.S has been at least 22.5% in every month, this year, with the top for months for lease penetration in the last decade coming in 2013”.

Rising sales Leasing is driving U.S car and LCV sales up to a six-year high, with over 1.3 million deliveries to July. If this pace keeps up, the automotive industry will be on track for it’s best year since 2007 where over 16 million vehicles were sold.

Defending position Toyota’s ability to offer it’s customers the Camry at cheaper monthly rates is more than crucial as it attempts to curb the declining demand for the care in the year’s first half. Competitors, including Ford, Honda and Nissan Motor Co., are closing in on Camry, which has been the top-selling car in the United States for the past 11 years. This is mainly down to manufacturers lowering their prices and in turn being able to offer better leasing opportunities to customers.

“As long as things are going in that direction, it can’t ever get too high,” David Westcott, a dealer selling GM’s Buick and GMC brand vehicles in Burlington, N.C., said of the leasing rate. Westcott is chairman of the National Automobile Dealers Association.

Ford is more cautious in its views on the trend of increased leasing activity. The company’s leasing business has been increasing as a share of its U.S. sales, although its mix is still below the industry average, CFO Bob Shanks said in a phone interview.

Loving leases
“Leasing will stay strong as long as used-car prices remain at historically high levels and interest rates continue to be low”, said Peter DeLongchamps of Group 1 Automotive. The Houston-based dealer group reported revenue of $2.34 billion for the three months ending June 30, a quarterly record for the company.
“Finding low-mileage late model cars is still very difficult,” he said. “The supply is improving a little bit, but you still see leasing activity happening because the residuals are so strong. Interest rates are still cheap.”

Are your interests relevant to your Automotive Recruitment CV

automotive recruitment

Some automotive recruitment candidates feel that their hobbies may sound boring and wonder whether it’s worth mentioning interests outside work when applying for a job or should they say something that will capture the interviewer’s attention or just leave them out completely.

It is worth thinking about which sport, hobbies and other interests you should mention on a CV and consider what you should say about them at interview. We see far too many CVs offering the bland combination of ‘reading, travel, spending time family and eating out’. Who doesn’t enjoy these things?

So why mention non-work activity at all? Well candidates who can show they are motivated by things outside work are considered to be ‘fully rounded’ and often these interests can also provide evidence of transferable skills.

Excellence in sport will often attract an interviewer’s attention and talking about anything where you demonstrate enthusiastic participation is usually well received. Where you’ve led or coached a sports team demonstrates the ability to manage people. You can mention with confidence about more solitary activities such as tracking down interesting people or rare items or simply doing something well.

Ask yourself, can you talk about something you’ve seen recently if you’ve listed the theatre as one of your interests? Likewise, if you’ve put down reading, what will you say if you’re asked about the best book you’ve read this year? Too many people mention interests that are no longer valid, or activities they have little enthusiasm for. You should also be careful to avoid implying that your best achievements are in the past; this can be avoided by not to listing things you did a long time ago.

Whatever interests you list in your CV, apply these three rules.

One, are the activities relevant to the job? If the link is obvious, mention it in a covering letter. If this evidence brings out skills such as your ability as an organiser, consider bringing that on to page one of your CV rather than tucking it at the back.

Two, be sure to list things that an employer wants to see. If the job requires great communication skills, mention activities that involve participation and people, show where you have used them both in and out of a work environment.

Three, Interviewers listen to the energy of what you say as much as the content so be sure to talk about what you have done with real enthusiasm?

Showing you are motivated demonstrates how you will hit the ground running. And remember to be selective in the hobbies; interests’ section of your CV, you don’t want it to look like you have no room for work in your life.

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