Imengo is a Supply Chain Strategy and Execution firm Imengo helps to transform your Supply Chain Operations Imengo executes projects in the Procurement, Manufacturing and Logistics area
Imengo is a Supply Chain Strategy and Execution firm Imengo helps to transform your Supply Chain Operations Imengo executes projects in the Procurement, Manufacturing and Logistics area
Imengo is a Supply Chain Strategy and Execution firm Imengo helps to transform your Supply Chain Operations Imengo executes projects in the Procurement, Manufacturing and Logistics area
Imengo is a Supply Chain Strategy and Execution firm Imengo helps to transform your Supply Chain Operations Imengo executes projects in the Procurement, Manufacturing and Logistics area

Car Blog (4) – 2011, the story continues…

Regular readers of this blog know my opinion on the global automotive industry: shares highly overpriced and structural overcapacity on the total global operations.

Also in the year 2010, the Automotive sector showed the highest increase in share value of all global industries: +41%. As you may remember..2009 was +101%. Where does this end?

The emotional factor on the stock exchange is by now a commonly known, but the combination of automotive and stock exchange seems to be an example of maximum synergetic effects: 1+1 >3.
Prognosis from Automotive news for the years 2011 and 2012 show a total sales number of 66-67.5 million cars globally. This is still a lot of cars less than the 71.4 million sold in 2007.

How can an industry sector with minimal 50% global overcapacity survive in today’s marketplace? Well, national governments who seem to be as vain as the car manufacturers themselves, keep filling the gaps the car manufacturers themselves have created. Squeezing suppliers, introducing cars below total cost price is in the end financed by us, the taxpayer.

The power of branding and customer intimacy seems strong enough to overcome the lack of operational innovation.

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