The global automotive electronics control unit management market is predicted to grow at a CAGR of 6.3 percent from 2014 to 2020, meaning that the market's 2013 value of $28.6bn and should reach a net worth of $43.7bn by 2020.
Wallenius Wilhelmsen Logistics (WWL), a global carrier of roll-on/roll-off cargoes and provider of logistics services, has opened a third vehicle processing center (VPC) in China.
A third (35 percent) of businesses in the manufacturing industry are extremely concerned about potential supply chain disruption, according to research released by BSI, the business standards company and the Business Continuity Institute (BCI).
Reverse logistics last year was punctuated by the record-breaking recall activity in the automotive industry, which created momentum that is now carrying into 2015. According to the Q4 Recall Index analysis from Stericycle, there was an unprecedented 74 million automotive units recalled throughout the year, an increase of 166 percent from 2013. Top affected products included air bags, which made up 34 percent of the total units recalled, and electrical systems, which impacted 31 percent of the units.
Automotive suppliers are under mounting pressure to satisfy two conflicting customer demands: to cut costs and to open more factories in fast-growing emerging markets so that they can be closer to their customers' production plants. Striking the right balance between cost and proximity in global manufacturing networks will be one of the industry's greatest challenges, according to a report by The Boston Consulting Group (BCG), conducted in partnership with the Fraunhofer Institute for Manufacturing Engineering and Automation IPA. The report is titled The Proximity Paradox: Balancing Auto Suppliers' Manufacturing Networks.
The global lubricants market is estimated to reach a demand totaling 44,165 kilo tons by 2020, up from 39,140 kilo tons in 2013, according to a report from Transparency Market Research. The increase is based on growth rates of 1.72 percent between 2014 and 2020.
Analyst Insight: Car ownership in developing economies is on the rise. By 2020, annual world vehicle production could reach 85 to 90 million units. That will mean another 75 to 100 plants, each producing around 300,000 cars a year, will be needed, essentially in or close to the world's fastest-developing countries. Automakers have to create new global production strategies to serve these multiple diverse markets. – Pierfrancesco Manenti, Vice President, Research, SCM World
The latest supply-chain news, analysis, trends and tools for executives in the automotive industry — which consists of companies that produce automobiles, utility vehicles, motorcycles, all-terrain vehicles and heavy trucks. Learn how automotive companies and their suppliers around the world are managing the flow of products across all channels of the enterprise. Experts sound off on forecasting and demand planning, supply-chain visibility, logistics outsourcing, inventory optimization, transportation management, warehouse management, supply-chain security, corporate social responsibility and more.
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