Employment in the US auto industry has already halved since 2000, to less than 500,000. Now, with major restructuring underway, suppliers of plastics components are looking around for other markets. One current success story, identified by the Wall Street Journal, is WJG Enterprise in Michigan. A 55-employee company, it was 100% oriented to auto parts […]
Tag Archives | auto sales
By the end of May last year, 6.2m autos had been sold in the US market, each containing $2700 of chemicals (according to the ACC). The total sales value to the chemical industry was $16.8bn. So far this year, just 3.9m autos have been sold, with a value of $10.7bn. Recent downturns have always seen […]
Continental Europe is now in its worst recession since World War 2. GDP fell 2.5% in Q1, following a 1.6% fall in Q4. Germany, often viewed as the ‘motor’ of the eurozone, saw its GDP fall a shocking 3.8% as markets for its export-driven economy dried up. Central & Eastern Europe were badly hit by […]
It seems highly likely that GM, the largest US car manufacturer, will enter Chapter 11 bankruptcy proceedings in the next few weeks. Chrysler, the 4th largest US company, may well follow them. Even if it avoids bankruptcy, GM’s own restructuring plan has the potential to be equally traumatic. It is based on a forecast US […]
The prospect of bankruptcy is finally sharpening the knife at GM. As the blog noted last month, inventories are at astronomical levels. 781000 vehicles were in stock at the end of February, and this figure had only dropped by 15000 vehicles during March to 765000 vehicles. This equates to around 6 months supply. Now the […]
The blog may be over-optimistic, but as with US house markets, it is hopeful that US auto market may have hit at least a temporary bottom. Spring should be a good period for sales, and March saw auto volumes down 37% versus 2008. This was a relatively good performance after February’s 41% decline, but still […]
There had been speculation that President Obama’s mid-West background might tempt him to take a soft line on the troubled automotive industry. But his comments on Thursday that there has been “a lot of mismanagement of the auto industry over the past several years”, suggested this was unlikely. Today’s news confirms it: • GM’s CEO […]
The decline in auto sales is now threatening many industry suppliers around the world: • Today, the main Japanese car parts group has warned that “Toyota’s production cuts will cause bankruptcies among suppliers if the government restricts aid to large manufacturers”. • Last month, the main US associations requested $18.5bn in support from the Obama […]
February brought no relief for the troubled US auto industry, so critical to chemical sales. Sales were down 41% versus 2008. Even more worryingly, sales over the past quarter, and last 6 months, averaged under 10 million/year. Chrysler’s results also show the severe cost of gaining market share. It gained 1.4% in the retail market, […]
European auto sales fell 25% in January, according to JD Power. This equals an annualised rate of just 11m cars, the lowest since the early 1990′s. 13.6m were sold in 2008. And although the forecaster hopes for some improvement later in the year, it suggests that “a late 2010 recovery is the most likely timing”. […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.